You apply for a credit card and then wait, only to sometimes face rejection. One of the most frequent questions asked is, “How do I get a credit card?” While the approval process may seem unclear, it often comes down to one single factor: your credit score.
This element is responsible for determining whether your application will be approved or rejected. The credit score represents creditworthiness and is based on your financial behaviour. Read on to understand how this score works and how you can leverage it to secure credit card approval.
Key Factors Lenders Look for in Your Credit Score
Your credit score is a three-digit number, typically ranging from 300 to 900. In India, scores above 750 are considered strong, while anything below 650 can raise concerns.
Issuers look at five key factors to calculate your score:
- Payment History: Have you been paying your bills, EMIs, and dues on time?
- Credit Utilisation: Are you regularly using a large portion of your available credit?
- Length of Credit: How long have you had credit products like cards or loans?
- Mix of Credit: Do you have a mix of credits, such as credit cards, personal loans, or car loans?
- Recent Applications: Have you been applying for credit too often or too quickly?
Each of these factors reflects your reliability and financial mindset, and together, they determine the chances of your application being approved.
How Your Credit Score Affects Your Credit Card Approval?
Once you apply, issuers start by reviewing your credit report. If your score is strong, you’re likely to get approved with a better credit card offer. However, if it’s weak or missing, your application can be declined at the first step.
This is how credit scores play a role in approval decisions:
- Above 750: This range reflects strong credit health. Issuers view you as low-risk, which results in quicker approvals, lower interest rates, and access to premium credit cards with high-value rewards.
- 650–750: This is considered a moderate to good range. While approval is still possible, you may be offered a lifetime-free credit card instead of a premium card.
- Below 650 or no credit history: This indicates weak credit standing. With limited or poor credit information, issuers often hesitate to give a standard credit card. You may be offered a secured or beginner-friendly card.
While income is important, your credit score carries more weight, making it essential to build and maintain a strong credit history.
What If You Don’t Have a Credit Score?
If you’re a student, just starting your career, or have never used a credit product, you may not have a credit score yet. That doesn’t mean you’re ineligible, it simply implies you need to build your credit profile before qualifying for more flexible credit options.
This is where a secured, lifetime-free credit card can be a smart first step in your financial journey. These cards:
- Come with no annual fees
- Have simpler approval criteria
- Help in building your credit history
By using it responsibly, you provide issuers with the financial record they need to assess your future applications.
How Multiple Applications Can Damage Your Credit Score?
It’s easy to feel frustrated when a credit card application is declined, often leading to the urge to submit multiple applications. However, each application triggers a hard inquiry on your credit report. Too many of these in a short span can signal risk to lenders and may further lower your credit score.
Instead of applying everywhere, be strategic and follow the steps below:
- Do your research to understand different credit card options and their eligibility requirements
- Ensure that you meet the eligibility criteria before applying
- Focus on beginner-friendly credit cards designed to help you build credit gradually and responsibly
How to Build and Maintain a Healthy Credit Score?
Getting a credit card is just the first step and how you use it will shape your financial future. These key habits are:
- Making timely bill payments: Always pay your credit card bills on time, even if it’s just the minimum due. Missing deadlines can hurt your score
- Maintaining low credit utilisation: Try to use less than 30% of your credit limit. High utilisation can signal risk to lenders
- Never skipping EMIs: Missing loan payments can quickly damage your creditworthiness
- Limiting credit card applications: Avoid applying for multiple cards in a short time, as each application creates a hard inquiry that may lower your score
- Checking your credit report regularly: Look out for errors or outdated information. Disputing and correcting these early can prevent unnecessary rejections and ensure your score stays accurate
What to Expect When Your Score Improves?
Once your score exceeds above 750, more favourable options become available to you:
- Issuers start sending you pre-approved offers, reflecting their confidence in your creditworthiness
- You are eligible for a range of credit cards that offer cashback rewards, lounge access, and other premium features
- Also, your credit limits are increased, which gives you greater spending flexibility
- Approvals for new credit become quicker and smoother, as issuers view you as a low-risk borrower
Check your credit score to see where you stand, and if it’s low or missing, a lifetime-free credit card is a smart, low-risk way to build your credit without annual fees. This sets the foundation for better credit opportunities ahead.
The One Credit Card, with its beginner-friendly features and no annual fees, is an excellent option to start your credit journey responsibly. You earn 5X rewards on your top two spending categories each month, adding more value to your regular expenses. It comes with a virtual card for secure online use and a physical card for POS payments.
The OneCard App gives you complete control, with features such as:
- Merchant EMI and Insights – Helps manage big-ticket purchases and track monthly budgets easily
- OneCash – Allows quick access to personal loans in case of an emergency
Apply today to make this stylish metal card yours!
