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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).
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.
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.
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.
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.
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.
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:
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:
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.