CIBIL for SBI credit card

In today's time, having a credit card has become more of a necessity than a luxury statement for individuals. It is a great tool for availing easy credit, if used wisely as it also helps to improve your credit score.

Since the launch of SBI Credit Card in 1998, it has introduced a wide range of credit cards with different features and benefits according to the evolving needs of the customers. And, with time, getting a credit card has become a fairly simple process, but there is a condition attached. You need to have a good CIBIL score (preferably above 750).

Importance of CIBIL Score for Getting SBI Credit Card

The recent increase in cases of financial frauds and non-payment of dues, banks are now maintaining extra caution and doing extensive background verification of customers before handing out the credit card. This type of verification is also known as hard inquiry.

Beside closely scrutinising the credit card application, banks primarily rely on CIBIL credit score to verify the customer's profile and on the basis of the score, banks decide on maximum credit limit for the customer.

CIBIL score and report is one of the main things used by banks to evaluate the creditworthiness of the individual. According to the CIBIL website, 79 per cent of loans and credit cards are approved for individuals with a score greater than 750.

Customers with a low CIBIL score (below 750) find it very difficult to get a credit card and in maximum cases, the application is rejected in the initial stages of verification itself.

SBI Credit Card Information

State Bank of India launched its subsidiary, SBI Card in October 1998, especially to look after the bank's cards business. With time, the SBI Card has expanded its credit card portfolio with a number of partnerships catering to a different set of people with a host of benefit.

Most Popular SBI Credit Cards

SBI Card offers credit cards in five different categories, namely Lifestyle, Rewards, Shopping, Travel & Fuel, and Banking Partnership cards. Some of the popular cards under different categories are SBI Card Elite, SBI Card Elite Advantage, SBI Card Prime, Simply CLICK SBI Card, Yatra SBI Card, Air India SBI Platinum Card. SBI Card also offers Corporate Card to meet the varied requirements of corporate clients.

Features and Benefits

Lower Interest Rates: It allows you to transfer your other credit card outstanding balances to SBI Card at lower interest rates or convert your existing balances to EMI. Money Simplified: It allows you to withdraw money from ATMs so that you never run out of options during emergency situations. Insurance: It allows you to choose from different types of insurance coverage including health, accident, motor, card protection, and others. Other Benefits: It also provides customers with Card Upgrade and Add-on Card facilities.

Eligibility for Applying for SBI Credit Card

Age Eligibility: Minimum age 21 years and maximum age 60 years.
Income Source and Credit Score: The customer should have a steady income source with good credit score, preferably above 750.

For documentation, the applicant should provide a colour photograph, valid identity proof (PAN Card), address proof (Aadhar Card), salary slip for the last three months, and a statement of fixed deposit from the bank.

Probable Reasons for SBI Credit Card Rejection

While it’s fairly easy to get a credit card nowadays, there are chances that your credit card application might be rejected by the bank. Here are a few reasons why your credit card application might get rejected:

Low Credit Score: This is one of the top reasons why banks keep rejecting credit card applications. Poor CIBIL credit score directly impacts the credit card application. Low CIBIL score implies that the customer is not creditworthy enough to avail a loan and there is a greater chance that the customer will fail to pay the dues on time.

High Debt Balance: The customer is having higher loan balances, greater than the prescribed limit and the customer might face problem in servicing the credit card due amount in time.

Low Income: Your income level shows the repayment capacity and your application for the credit card is most likely to get rejected if you do not meet the income requirement of the bank.

Insufficient Bank Balance: In most cases when applying for a credit card, the bank asks for keeping a fixed deposit against the security of the credit card. Failure to furnish any such deposit will lead to rejection of credit card application. Also, one must note that the amount of fixed deposit kept as a security against the credit card is also one of the deciding factors for the maximum credit limit on the card.

Multiple Credit Card: If you hold multiple credit cards of different banks and the income outflow is higher due to owning multiple credit cards from different banks or companies, your application might get rejected. This can happen despite having a good debt-to-income ratio.

Errors in Application Form: This is the most common form of error which can lead to the rejection of a credit card application. It is better to apply for credit card online as it diminishes or reduces the chances of any error in the application form and you can preview it before the final submission.

Tips to Improve CIBIL Score to Get SBI Credit Card

CIBIL score reflects all your past credit behaviour and improving it is not an easy task. It cannot be done overnight and can take atleast 4 to 12 months to improve your overall score depending on the level of your score. Here are some tips on how to improve your score through maintaining financial discipline:

Clear all your outstanding dues : Clearing all your outstanding credit card dues and making timely payments of other credit balances before the due date is vital to improve your overall credit score. This reflects good financial behaviour which the lender wants to see in their customers. Setting reminders of all your EMI payments will help you to never miss on payments so that you can maintain your good credit behaviour.

Maintain your older credit card : Its sounds weird, but it is true. The older the card, the longer your credit history will be. So, an old good credit card which has been managed properly with timely payments over a long period of time will help you to maintain a good credit score in the future.

Credit Utilisation Ratio : The credit utilisation ratio is vital for your credit score. The more you restrict your credit usage against the sanctioned credit limit, the better the impact will be on the score. There is an unsaid rule that keeping the credit utilisation ratio at 30% is reflective of good financial discipline on your part and helps you improve your credit score.

Avoid taking too much debt at one time : Taking too much loan at a time affects your Debt to Income ratio. The ideal Debt to Income ratio should be 36% and beyond that, it affects the individual's ability to repay the debt. Whenever you go for a loan, opt for a longer repayment tenor. This will ensure low EMI and you will find it easy to make payments on time. This will reflect on your credit report which will help to improve your score.

Analyse your credit report : CIBIL report should not be believed blindly as there could be some errors while updating your records. Cross check each and every data point from time to time and if there are any discrepancies, correct them by submitting a CIBIL Dispute Resolution Form online. If the error proved to happen, then your credit score will improve automatically.

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FAQs On CIBIL for SBI credit card

Can I get a loan on SBI credit card?

Yes, you can avail loan using your SBI credit card through using the Encash facility. You can get a loan approved more than your credit limit at a low-interest rate with repayment options in 12, 24, and 36 months.

What if I have a low CIBIL score, will SBI Card still give me a credit card?

No, the bank will reject your credit card application if it finds that the credit score is not within the prescribed limit or it is too low.

Does skipping SBI Credit Card payment affect my CIBIL score?

Yes, every payment of credit card bill has an impact on your credit score. Even skipping a credit card payment will reflect on your credit report.

Had a loan settlement with SBI credit card, will it affect my CIBIL score?

When a loan is settled, the creditor updates credit report as "settled". If you are not paying up the full outstanding amount because of this, it will have a negative impact on your credit score.

Will I get supplementary/add-on card with my existing SBI Credit Card?

Yes, the bank provides you with an add-on card with the existing credit card issued in the name of your spouse or children (age above 21) with same credit lime or you can have customised credit limit.

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