May 14, 2025 · 16 mins read
Santhosh Kumar
We all have overhead expenses that may or may not get covered by our salaries alone, be it buying our dream vehicle, taking care of extra expenses incurred during a wedding, or going for an additional educational course that will help us upskill. This is when a credit card comes in handy. But one may need a good credit score for anyone to avail of credit card services. A credit score, also known as a Credit score, is crucial for assessing a candidate's loan/credit card bill repayment capacity. Sometimes, unforeseen circumstances, such as not having a credit history or financial missteps, can lead to a low Credit score, making it challenging to obtain a credit card. But fret not! Follow this guide on how to get a credit card for bad credit in India in 2025.
The Credit score is a three-digit number that highlights your credit history. Your Credit score is calculated based on whether you pay your credit card bills on time, whether you pay your loans on time, and whether you have defaulted or delayed paying. A Credit score ranges between 300 and 900; the higher your score, the better your chance of getting a loan or a credit card. The closer your score is to 300, the greater your chance of getting a credit card or loan rejection. However, there are ways to improve your Credit score. These include getting a secure credit card, increasing your credit limit, keeping an eye on your credit utilisation ratio, and paying your EMIS on time.
Most banks and financial institutions check your Credit score to see if you can pay your credit card bill on time. They also check the Credit score in case you apply for a loan, such as a home loan, an auto loan, or a personal loan. A delay in payment results in a default, and in the long run, a loss for the bank. Hence, when an individual applies for a credit card, s/he is required to submit all documentation, including their salary slip, bank statement, Form 16, and income tax certificate. If the individual already has a credit card, then s/he is required to provide the card details to the bank providing the new credit card. Basis these documents, the bank checks your history, calculates your credit score, and deems whether you are eligible for a credit card.
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There are many credit rating or scoring agencies in India that provide a person's credit score upon subscription or even for free. These credit-rating agencies review a person's financial history to compute a three-digit numerical score, known as a credit score.
A credit score lower than 600 is considered poor or bad credit. Most lenders prefer to provide credit only to applicants with a good or high credit score of 750+.
When you have a low credit score, it implies that you have a poor credit repayment history or have made wrong credit decisions in the past. This implies that a person with a low credit score is a riskier candidate for any potential loan or credit card, and the risk of default is high.
The credit score, as mentioned above, is the barometer of the sound financial health of a person. This credit score can be hampered by many instances that reduce the credit score and deem the person a bad candidate for any loans or credit cards.
Bad credit history or credit score is a result of poor credit management. It could be due to any of the following reasons.
1: Late payments on your loans and credit cards
2: Missed payments/defaults on your loans and credit cards
3: Foreclosure
4: Written-off or settled account
5: Too many hard enquiries
Bad credit puts you in the bad book of the creditors, and any future loan application is turned down due to the above reasons.
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Lenders prefer providing credit cards and loans to applicants with good credit scores. This safeguards them from any potential bad assets. However, there are some options for individuals to get a credit card for bad credit India. Some of these options are discussed below.
Most banks offer free credit cards to their customers. The customer's primary bank has the complete financial history of the customer and can easily ascertain the customer's creditworthiness. It is one of the easiest ways to get a credit card for bad credit in India.
Credit cards are usually in the form of unsecured credit. This prevents many banks from issuing a credit card to any person with bad credit. However, you can apply for a secured credit card if you have a poor credit score.
A secured credit card is a credit card issued against collateral or on pledging a high-value asset. This assures the issuing authority of the credit card's viability and prevents it from becoming a bad asset. Usually, secured credit cards are issued with an FD (Fixed Deposit) held at the bank. The credit limit on these cards is usually 80% to 90% of the linked FD value.
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Credit card fees are part of every credit card issued by any bank. Most banks lower the credit card fees or waive them off for cardholders with a long-standing relationship with the bank or having a good credit rating. A person with bad credit can apply for a credit card with higher fees. These cards usually do not require the cardholder to provide any deposit and can be issued to persons with bad credit. The cardholder can then use these cards to build a sound credit profile and gradually shift to a credit card with lower charges and better offers.
A poor credit score may hinder your ability to obtain a credit card. Usually, a credit score lower than 600 is considered a poor credit score. A poor credit score mostly results from high credit use and missed payments. However, low-interest credit cards typically have interest rates lower than most cards, which helps you manage debt easily, save money and get a credit card for bad credit in India. Check out the top five low-interest-rate credit cards:
The SBM ZET Credit Card, issued by SBM Bank (India) in partnership with ZET, is an FD-backed, lifetime-free credit card ideal for individuals with bad credit or limited credit history.
1: No joining or annual fee—lifetime free
2: 100% digital onboarding and instant approval via ZET app
3: No income proof required
4: FD continues earning up to 7% interest
The SBI credit card is accepted globally and is offered against fixed deposits. Up to 85% of your total fixed deposit can limit your credit.
1: Enjoy cash withdrawal from several ATMS across the globe.
2: Apply for add-on cards for spouse, siblings, children or parents.
3: Convert your SBI Advantage Plus Credit Card spends into EMIs with Flexipay.
1: Annual fee: Rs 500
2: Renewal fee: Rs . 500 p.a.
3: Add on charges: Nil
4: Interest charges: 2.25% per month or 27% p.a.
5: Late payment charges: Up to Rs 750, depending on the spend amount
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This Axis Bank Insta Easy Credit Card can be used on your salary or fixed deposit. With minimal documentation, it is apt for people trying to enhance their credit scores.
1: Get a credit limit up to 80% of your FD.
2: 1% fuel surcharge waived on all fuel transactions.
3: Cash withdrawal of up to 100% of the credit limit.
4: No joining fee or annual fee.
1: Joining fee: Nil
2: Annual fee: Nil
3: Add on charges: Nil
4: Interest rate 2.50% per month or 34.49% p.a.
5: Late payment fee: Up to Rs 700
The HDFC Money Back Credit Card can be availed on your salary. The ease of obtaining this card makes it a good option for people trying to improve their credit scores. Some of the details of the card are mentioned below.
1: Earn 2 reward points for every Rs . 150 spent.
2: Convert spend to EMIS using Smart EMI.
3: No lost card liability after reporting a loss of the card.
1: Joining fee: Rs 500
2: Annual fee: Rs . 500
3: Add on charges: Nil
4: Minimum amount due: 5% of the total outstanding
5: Late payment fee: Up to Rs 750
6: Over limit charge: Rs 500 minimum
Read More:: How Does Foreclosure Affect Your CIBIL Score?
The WoW credit card is provided to individuals without a credit history. It is offered to everyone and comes with guaranteed approval. A higher interest rate can be earned against the FD account.
1: The reward points do not expire.
2: Reward points can be redeemed at any given time online.
3: No income proof needs to be provided.
1: Joining Fee: Nil
2: Annual Fee: Nil
While it’s possible to get a credit card for bad credit in India, it has several downsides.
You may be charged higher interest rates and other fees on the card
1: Lower credit limit
2: High late fees and other penalties
3: Limited choices
4: Limited card benefits
So, we recommend that you take the right measures to improve your credit score so that you're eligible for better credit cards at the best rates in the future.
Read More:: How to Build Credit from Scratch
A credit card with bad credit can be a useful financial tool for improving your credit score, but it can also come with some risks, and it is important to use these products with caution. Individuals with bad or limited credit very often turn to these kinds of products to help them become more financially stable or to build a reputation with future lenders, but there are risks that should be understood prior to using these products.
In any case, the first risk that you might encounter is that you will likely receive a credit card with a high interest rate. If a borrower has a history of late or missed payments, banks and credit card issuers are likely to perceive that borrower as a high-risk applicant. Therefore, lenders will likely cover this risk by charging a higher annual percentage (APR) for cards. If balances aren't paid in full and on time, the cumulative cost of high-interest balances can quickly lead to a debt spiral. The next risk to consider is a low credit limit. While low credit limits can help with consumer spending, credit limits that are exceeded or missed payments can lead to credit score penalties that do not help repair your credit.
It will not be unusual to encounter hidden fees and maintenance fees with bad credit credit cards. Applicants should make sure to read, at the very least, the terms and conditions documents prior to applying, particularly since fees that result from renewal, payments that are late, over-limit transactions will quickly add up. Even missing the minimum payment due could hurt the entire credit experience.
To effectively utilize such cards, cardholders must demonstrate responsible credit behaviors. Payments should always be made on time, it is better when paid in full, so as to avoid interest from accruing. A good rule of thumb is to keep utilization below 30% of the total limit, as this demonstrates good credit habits and helps improve your CIBIL. It is also important to check card statements and credit reports to catch mistakes or potential fraudulent activity early.
Yes, credit cards for those with bad credit can greatly help improve your eligibility for loans in time. While your initial credit limit and rewards might be low, the primary value of opening a credit card is to allow individuals to show they can be responsible with credit. Paying your statement balance on time helps you build a positive credit history, which helps to increase your CIBIL score - a main factor that lenders use when they evaluate your loan application.
If you use these cards in a responsible way, they can be a stepping stone to getting back on your financial feet. When you pay the card responsibly, banks see that you can manage your own debts. Again, when your score improves, you can use it to qualify for better financial products like personal loans, car loans or even home loans with lower interest rates. Thus a credit card with bad credit can help you now, and will help you in the future by assisting you in rebuilding your credibility.
Stay away from applying for a credit card too often, it will hurt your credit score. Too many hard enquiries in a short period of time can lower your credit score too. You will have a better credit score if you continue to keep one or two cards and use them. Over time, with good habits, you will get credit limit offers, premium credit cards.
Also, be sure to keep your credit mix balanced. Lenders are more likely to extend credit to borrowers who demonstrate they can manage not just debts that have some security behind them, but also unsecured debts. Since you will need to consider reminders for your payments due dates or sign up for auto-debit payments anyway, this will ensure you develop a consistent repayment pattern.
The credit score reflects the applicant's creditworthiness and helps the bank ascertain whether the applicant is a viable candidate for issuing a credit card. Most banks provide credit cards only to persons with good or high credit scores. That doesn't mean a person with a poor credit score cannot get a credit card. As mentioned in this article, there are different ways to get a credit card with bad credit.
Lenders nowadays use other criteria to sanction credit cards besides credit score. Some credit cards are approved instantly, even with a bad credit history. You can apply for such credit cards and find a lender who offers credit cards for bad credit in India.
A person having a low credit score is considered to have bad credit. Credit scores of less than 650 are generally considered bad.
Yes. A person can get a credit card even if they have bad credit, provided the bank or card issuing company approves the request.
Getting a credit card with a low credit score is generally difficult. However, such persons can apply for a secured credit card or a credit card with his/her primary bank or a credit card with higher fees.
A. The easiest credit cards to get with bad credit are secured, student, and credit-builder cards.
The easiest way to get a credit card with bad credit is to use secured credit cards. Banks like SBI, ICICI Bank, HDFC Bank, Bank of Baroda, Kotak Mahindra Bank and Axis Bank offer secured credit cards on an FD.
Yes. In India, many banks and fintech firms provide secured credit cards against fixed deposits to individuals with no credit history. These cards fit perfectly for people who are about to start building their credit history from scratch.
Yes. There are several issuers or lenders who issues credit cards aimed at rebuilding credit in India. They allow people with bad or limited scores to slowly ensure creditworthiness. These cards usually have a moderate credit limit and require some discipline in repayment.
Some credit cards for bad credit might charge an annual fee or maintenance fee. Be sure to read the card's terms and conditions in full and look for fees like renewal, late payment, and over-limit charges prior to applying.
Yes, each time you apply for a credit card, it results in a hard enquiry on your report. If you are applying for multiple cards within a short period of time, it will lower your score and potentially make it harder to get approval in the future.
Build and Maintain a 750+ Credit Score
