Top 5 Credit Cards for Bad Credit in India
24 Jan 2026 8 mins Credit Cards
Having a low credit score can often feel like a financial prison. It limits your ability to secure loans, mortgages, and even credit cards. However, there are options available for individuals with bad credit. This article will delve into the best credit cards for those struggling with bad credit in India. By understanding these options, you can take a significant step towards rebuilding your credit score and improving your financial health.
Understanding Bad Credit in India
Bad credit is typically defined as a credit score below 600 in India, according to CIBIL (Credit Information Bureau (India) Limited). A low score can result from various factors, including late payments, defaults, or even a lack of credit history. In India, the importance of a good credit score cannot be overstated as it is a significant determinant for loan approvals and credit card applications.
Many people find themselves in a cycle of bad credit due to unforeseen circumstances like medical emergencies, job loss, or simply poor financial management. In fact, a survey by TransUnion CIBIL indicated that nearly 40% of the population in India has a CIBIL score below 600, highlighting the widespread nature of this issue. Understanding the options available for credit cards designed for individuals with bad credit is crucial for anyone looking to regain financial stability.
Criteria for Selecting a Credit Card for Bad Credit
When selecting a credit card for bad credit, consider the following criteria:
Annual Fees: Look for cards with low or no annual fees. Some banks offer waivers on the annual fee if you meet certain spending thresholds.
Interest Rates: Understand the APR (Annual Percentage Rate) and whether it is fixed or variable. A lower interest rate can save you money in the long run.
Credit Limit: Check the initial credit limit offered and whether it can be increased over time. A good credit limit can help improve your credit utilization ratio.
Rewards and Benefits: Some cards offer cashback, discounts, or rewards that can be beneficial even for those with bad credit. These rewards can help offset some costs associated with the card.
Approval Process: Some cards may guarantee approval or have a streamlined application process. Understanding the approval criteria can help you choose wisely.
Top 5 Credit Cards for Bad Credit in India
1. SBI Unnati Credit Card
The SBI Unnati Credit Card is tailored for individuals looking to improve their credit score. It offers a host of benefits:
No Annual Fee: The card comes with no annual fee for the first four years, making it an attractive option for those just starting to rebuild their credit.
Low Interest Rates: The card features a competitive interest rate, making it easier to manage payments. The interest rate can range from 13% to 24% per annum.
Credit Limit: Starting credit limit can range from ₹10,000 to ₹50,000, which can be reviewed and increased based on your spending and repayment patterns.
Rewards Program: Earn 1 reward point for every ₹100 spent, which can be redeemed for various products and services, adding value to your spending.
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2. HDFC Bank EasyEMI Credit Card
The HDFC EasyEMI Credit Card is an excellent choice for those who want to make big purchases while managing their budget. Key features include:
EMI Facility: Allows you to convert purchases into easy monthly installments, making larger purchases more manageable.
Cashback Offers: Receive cashback on select categories such as groceries and fuel, enhancing the card's value proposition.
Instant Approval: The application process is straightforward, and many applicants receive instant approval, providing immediate access to credit.
3. Axis Bank Insta Easy Credit Card
Axis Bank offers the Insta Easy Credit Card, designed specifically for individuals with a low credit score. Features include:
No Income Proof Required: Ideal for individuals with irregular income, simplifying the application process for many.
Cashback Rewards: Enjoy cashback on various categories such as groceries and dining, which can help save on everyday expenses.
Flexible Payment Options: The card allows for flexible payment options, including minimum payment options that can ease financial pressure during tough months.
4. ICICI Bank Instant Platinum Credit Card
The ICICI Bank Instant Platinum Credit Card is a great option for those looking to rebuild their credit score:
Zero Annual Fee: No annual fee for the first year, allowing you to use the card without initial costs.
Rewards Program: Earn reward points for every purchase, which can be redeemed for a variety of benefits, including vouchers and discounts.
Instant Approval: Quick application process with instant approval for eligible customers, which is particularly beneficial for those needing immediate access to credit.
5. Kotak Mahindra Bank Aqua Gold Credit Card
The Kotak Mahindra Aqua Gold Credit Card is another excellent choice for individuals with a bad credit score. Its features include:
No Annual Fee: The card comes with no annual fee for life, making it a cost-effective choice for long-term use.
Cashback Offers: Get cashback on utility bill payments, which can help reduce monthly expenses significantly.
Easy Application Process: The application process is simple, making it accessible for those with bad credit, often requiring minimal documentation.
How to Apply for a Credit Card with Bad Credit
Applying for a credit card with bad credit can seem daunting, but it can be straightforward if you follow these steps:
Check Your Credit Score: Before applying, check your credit score to understand your eligibility. You can obtain a free CIBIL score report once a year.
Research Options: Review the credit cards listed above and select one that suits your needs. Consider factors like fees, interest rates, and benefits.
Gather Documentation: Prepare necessary documents such as ID proof, address proof, income proof, and any existing bank statements that may support your application.
Complete the Application: Fill out the application form accurately and submit it online or at a bank branch. Ensure all information is correct to avoid delays.
Follow Up: After submission, follow up with the bank for any additional information they may require. This can expedite the approval process.
Loan on Credit Card: Good or Bad?
Taking a loan on a credit card can be a double-edged sword. If managed well, it can help in emergencies, but mismanagement can lead to higher debt:
Pros: Quick access to funds, flexible repayment options, and the ability to consolidate debt can be beneficial in financial emergencies.
Cons: High-interest rates, potential for accumulating debt if not paid on time, and the risk of negatively impacting your credit score if payments are missed.
Frequently Asked Questions (FAQs)
What is a bad credit score in India?
A bad credit score in India is generally considered to be below 600. This score can severely limit your financial options.
Can I get a credit card with a low CIBIL score?
Yes, there are specific credit cards designed for individuals with a low CIBIL score. Many banks offer products tailored for rebuilding credit.
Do credit cards for bad credit have high fees?
Some credit cards for bad credit may have higher fees, but many options are available with low or no annual fees, especially if you maintain regular usage and timely payments.
How can I improve my credit score quickly?
Paying bills on time, reducing outstanding debts, using credit responsibly, and avoiding new hard inquiries can help improve your credit score. Regularly monitoring your credit report for inaccuracies and addressing them can also be beneficial.
Is it possible to get guaranteed approval for a credit card?
While no card can guarantee approval, some cards have a higher likelihood of approval for those with bad credit. Cards like the SBI Unnati or Axis Bank Insta Easy are designed with lenient criteria.
Key Takeaways
There are viable credit card options for individuals with bad credit in India, which can help you start rebuilding your credit history.
Researching and understanding the terms of each card is essential for making an informed decision, as different cards offer various benefits and drawbacks.
Using a credit card responsibly, such as making timely payments and keeping balances low, can help rebuild your credit score over time.
Ready to take control of your financial future? Consider applying for one of the top credit cards for bad credit today!
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.