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Your CIBIL score plays an important role when applying for a credit card, especially from a leading bank like HDFC. Even if you have a low CIBIL score, understanding how it's calculated and taking steps to improve it can help increase your chances of HDFC Bank credit card approval.
How CIBIL Score is Calculated
CIBIL score ranges from 300 to 900, with higher scores indicating a better credit profile. The score is calculated based on five factors:
Payment History (35%)
Whether you make credit card and loan payments on time. Even a slight delay can negatively impact your score.
Credit Utilization Ratio (30%)
The ratio between your total available credit limit across all cards and loans versus the amount you have currently utilized. Experts recommend keeping this below 30%.
Credit Mix (10%)
The variety of credit types you have - like mortgage, auto loan, credit cards, etc. A healthy mix improves your score.
New Credit Applications (10%)
Applying for too much fresh credit in a short span can decrease your score.
Credit History Length (15%)
A longer credit history signals stability and improves your score. This is built over time.
Why Should You Get an HDFC Credit Card?
Here are key benefits that make HDFC Bank credit cards worth applying for:
1. Higher Credit Limits
HDFC cards offer higher limits than competition for same applicant profile. Supports larger purchases.
2. Fuel Surcharge Waivers
Most HDFC cards provide waived fuel surcharges on transactions between ₹400 to ₹4000 offering savings of 2.5%.
3. Complimentary Airport Lounge Access
Certain premium HDFC Cards offer free domestic and international lounge access privileges annually under defined limits.
4. Reward Points
HDFC cards offer accelerated reward points on dining, entertainment, travel booked via SmartBuy portal. Points can be redeemed against array of merchandise, vouchers, flight tickets etc.
5. 0% EMI Schemes
Attractive 0% EMI conversion schemes on expensive purchases at popular retail chains such as Flipkart, Amazon, electronics stores etc. making buying affordable.
6. Buy Now, Pay Later Programs
Flexipay, PayZapp, SmartEMI and MyZone tap and pay later programs offer flexibility and convenience for high-value online and in-store purchases.
Thus, HDFC Bank credit cards make for a compelling lifestyle enhancement and transaction simplification tool when usage and payments are managed prudently.
HDFC Credit Card Bank Minimum CIBIL Score
HDFC usually approves credit cards for applicants with a CIBIL score of 750 and above. Those with lower scores may get rejected or get lower credit limits approved.
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However, your income, profession, existing relationship with HDFC, and other factors also play a role in the final decision.
Reasons For HDFC Credit Card Rejection
Common reasons why HDFC Bank rejects credit card applications despite meeting the basic eligibility criteria:
1. Low CIBIL Score
CIBIL scores below 650 often get instantly declined. Even scores in 650-700 range face rejection if other risk factors exist. HDFC usually approves 750+.
2. High Debt Burden
Too many credits already availed with large amounts pending can signal risk, especially if your income is on the lower side.
3. Prior Defaults or Delays
Past payment delays, settlement deals, or unpaid dues on credit cards/loans raise red flags of future risk.
4. Frequent Job Changes
High income volatility doesn't inspire confidence in regular loan servicing capacity.
5. Errors in Documentation
Wrong or conflicting information provided compared to credit bureau data can lead to rejection.
6. Recent Credit Inquiries
Too many new credit applications within last 6 months dilutes positive history.
7. Bank's Internal Risk Policy
Sometimes profile markers just miss the bank’s proprietary score cutoff thresholds.
With maturity and discipline, the above risk factors can be mitigated over time to become eligible.
How to Improve CIBIL Score for HDFC Bank Credit Card Approval
Even if your score is not in the best shape right now, you can take steps to boost it within a few months:
1. Review Credit Report
The first step is to check your credit report from CIBIL to identify factors negatively affecting your score. Look for errors and discrepancies too.
2. Maintain Low Card Utilization
Don’t max out cards. Experts recommend keeping utilization below 30%. Clear dues promptly each billing cycle.
3. Avoid Multiple Applications
Applying for too many new credits together impacts score. Allow 6 months between applications.
4. Become a Loan Guarantor
Being a guarantor for someone else's loan can help establish positive payment history.
5. Don't Close Old Accounts
Keeping long-standing accounts open preserves your credit mix and history length.
6. Check Score Quarterly
Regular checks allow you to gauge improvement and persist in financial discipline.
HDFC Bank Credit Card Alternatives for Low CIBIL Score
If your CIBIL score will take time to improve, consider these alternatives to build your credit profile first:
Secured Credit Cards
As mentioned earlier, secured cards require a refundable security deposit. Make all payments on time to establish good payment history. Examples are HDFC Solitaire, ICICI Bank Coral Credit Card, and Bank of Baroda Secured Credit Card.
Credit Builder Loans
These work just like personal loans but the amount is not disbursed to you. The lender parks the approved loan amount in a separate savings account. Make timely payments against the loan to build positive history.
Add-on Cards
If you have a family member with a high credit score, request to be added as an authorized user on their credit card. Their good track record will reflect on your credit profile too.
Q&A on HDFC Bank Credit Cards and CIBIL Score
Q1. Does having an HDFC Bank credit card hurt your CIBIL score?
No, merely having an HDFC Bank or any other credit card does not hurt your CIBIL score. In fact, using credit cards responsibly by keeping utilization low and making payments on time helps improve your score. It contributes positively to factors like credit mix, history length, and payment track record. Issues only arise if you frequently miss payments or delay them.
Q2. How long does a HDFC Bank credit card payment default stay on CIBIL?
As per regulations, negative events like defaults and delays remain on your CIBIL report for 5 years from the date you cleared the overdue payment. However, their impact on your score reduces with time as positive behavior continues. To avoid defaults, setup payment reminders and always pay at least the minimum amount due before the payment due date.
Q3. Does cancelling a HDFC credit card impact your CIBIL negatively?
No, cancelling or closing a credit card after responsible usage does not negatively impact your CIBIL score. In fact, voluntarily closing unused cards reflects prudence in managing credit. However, it can reduce your overall credit limit and credit mix. If the card is more than 2 years old, retaining it preserves credit history length too. Consider downgrading to a free card instead of complete closure.
Q4. Can you get a HDFC Bank credit card with a 750 CIBIL score?
Yes, a CIBIL score of 750 makes you eligible for approval of most HDFC Bank credit cards. Some factors like income, occupation, existing relationship with HDFC, and details of other loans and credit cards also play a role, but 750+ gives you a high chance of getting approved. Those with 700-750 score may get approved but often get lower credit limits.
Q5. Does being an authorized user on HDFC card help credit score?
Yes, being an authorized or add-on user on someone else’s HDFC credit card reflects their positive usage and payment history onto your credit report. So with responsible usage by them, it contributes towards improving factors like your credit mix and payment track record. Just ensure there are no overdues or delays in payments on that card account.
Q6. Can I get a Loan on HDFC’s Credit Card?
Yes, HDFC offers a credit card EMI loan scheme called FlexiPay wherein you can convert large credit card purchases into EMIs ranging from 6 to 48 months at competitive interest rates starting from 1.99% per month. The loan amount can be from ₹3,000 up to your full available credit limit. Key eligibility criteria are - your card must be 6 months old, no payment delays in last 6 months, and a good credit score.
Q7. What are the Eligibility Criteria for Getting an HDFC Credit Card?
Key eligibility criteria for HDFC credit cards are - minimum age of 21 years, Indian citizenship, minimum annual income of ₹2 lakhs (or lower income proof for certain cards), and a decent CIBIL score with no payment delays or defaults. Having an existing relationship with HDFC Bank helps fast-track approval chances too.
Q8. What if I have a low CIBIL Score, will HDFC Bank Still Give me a Credit Card?
For a low CIBIL score below 650, your chances of instant approval reduce unless you have a long-standing relationship with HDFC Bank backed by substantial Assets Under Management (AUM). Those between 650-700 may get conditional approval with a lower credit limit, while 750+ score significantly improves your approval odds. If your score is below 750, consider secured cards to establish positive history first.
Q9. Does skipping HDFC credit card payments affect my CIBIL score?
Yes, frequently skipping credit card payments leads to severe delinquency tags on your credit report like 60, 90 or 120 DPD (days past due). This signals high risk and badly hurts your CIBIL score due to damage to payment history - the single largest scoring factor. Even one missed payment can drop your score by 50-80 points initially.
Q10. Will a loan settlement with HDFC credit card affect my CIBIL score?
Yes, settling your HDFC credit card dues via one-time settlement after severe delinquency is better than a default. But it still represents a negative event of non-regular closure. As per norms, it stays on your CIBIL report for 5 years after settlement. Within that time, your score can only improve by continuing disciplined behavior on other open loans.
Q11. Can I get more than three HDFC bank credit cards if I have a good CIBIL score?
Normally HDFC restricts customers to a maximum of 3 credit cards only. However, for very reputed clients with a long-term relationship spanning 10-15 years backed by excellent banking record and high Assets Under Management (AUM), HDFC may approve a 4th or in rare cases 5th credit card. But this would need a CIBIL score above 800+ with no negatives ever.
Conclusion
A low CIBIL score need not be the end of your HDFC Bank credit card aspirations. By understanding exactly how your score is calculated, checking your credit report, and implementing tips to boost it steadily with financial discipline, you can realistically improve your score within 6 to 12 months. Consider secured cards and credit builder products in the interim. Stay motivated by checking your score quarterly to gauge improvement. Over time, achieving an excellent CIBIL score well above HDFC’s minimum is definitely possible.
