What Are The Ways To Apply For A Credit Card If The Real-Time Credit Score Is Low?

 

By using a credit card, one can handle most of the financial decisions. Be it buying an item at the store or paying for food, credit cards always come in handy. In the current situation, these have turned out to be one of the most used items by people. Further, it also improves real-time credit scores and makes way for availing for future loans.

Several citizens hold this card as an object that can be used as a liability. This is done to protect the digital economy by contributing some money to the increased use of credit cards.

What is a real-time credit score?

The credit score indicates the creditworthiness of an individual. This is a three-digit number that determines the credit history, comprising of the credit history, credit report and potential to repay loans back. Before providing a credit card, the individual must know about the ways of credit risk management before making payments.

Methods to apply for a credit card with a lower score

Most lenders prefer giving loans to people who have a better credit scores. This protects them from any kind of bas asset management. Even banks try to avoid giving loans to such people due even though they introduce the method of financial inclusion in India.

Still, there are some ways by which a person can receive a credit card even with a low credit score. Let's take a look. 

      ·         Apply for a credit card through a primary bank

Banks do not offer any kind of free credit cards to their customers. Since these are the ones who have the entire credit history of the individual, starting with their real-time credit score to their credit report, evaluating their creditworthiness is easy. Thus, by using a savings account as an asset, one can apply for a credit card.

      ·         Getting a secured credit card

Often the credit card that is received by the individual is in an unsecured form. This is done by the bank so that a person with bad credit cannot apply for a card. But one can apply for a credit card based on the pledging of an asset of high value like the FD (Fixed Deposit). However, to maintain this, one has to develop strategies for credit risk management.  

      ·         Receiving a higher amount of fee for credit cards

Individual who owns a credit card has to give a fee as a part of financial inclusion in India. However, if the individual has a good credit score, this fee can be reduced. But, to improve credit scoring, one can apply for a credit card that has a higher credit fee. The individual can use it later on to improve the worsening credit situation and then shift to lower credit fees.

Although this can never be denied that a good credit score is always the first key to availing of a credit card. Still, if the user has the ability to pay fees on time and is sure to not overspend any amount of money can use these above methods to avail of a credit card.