Credit Cards for Bad Credit: We all face expenses that stretch beyond our monthly salary. These may include buying that dream bike, managing wedding costs, or enrolling in an upskilling course. In moments like these, a credit card can be a great financial tool. But here’s the catch—most banks will look at your credit score before offering you one.
A low credit score might stop you from getting approved, but don’t worry. There are still ways to get a credit card in India in 2025, even with a poor credit history. Let’s understand how.
What is a Credit Score?
A credit score is a 3-digit number. It ranges from 300 to 900. It shows how trustworthy you are in repaying money. The closer your score is to 900, the better. A good credit score means you’ve paid loans and credit card bills on time. A low score means you may have delayed or missed payments.
Banks use this score to decide whether to approve your credit card or loan applications.
Why is a Credit Score So Important?
Whenever you apply for a loan or credit card, banks want to know if you can repay it. Your credit score helps them decide that. If your score is low, you might face rejections or get less attractive offers.
To apply for a credit card, you generally need to provide:
- Salary slips
- Income tax returns or Form 16
- Bank statements
- Details of existing credit cards (if any)
Based on these documents and your credit score, banks decide whether or not to issue you a card.
What is Considered Bad Credit?
If your credit score is below 600, it is considered “bad credit.” This usually happens when someone has missed EMIs, paid bills late, or defaulted on loans.
Most lenders prefer applicants with scores above 750. If your score is lower, it becomes difficult to get a loan or a regular credit card.
Common Reasons Behind a Low Credit Score
Your credit score can drop for various reasons. Here are a few common ones:
- Paying EMIs or credit card bills late
- Missing payments altogether
- Foreclosing a loan (closing it before tenure)
- Settling loans for a lower amount than owed
- Applying for too many loans or cards in a short time (hard enquiries)
Such issues put you in the “high-risk” category for lenders.
How to Get a Credit Cards for Bad Credit?
The good news is, bad credit doesn’t mean no credit card. Here are your best options in India if you have a low credit score:
1. Apply Through Your Existing Bank
If you already have a savings or salary account with a bank, you can apply for a credit card there. Your bank knows your transaction history and may be more flexible, even if your score is low.
2. Get a Secured Credit Card
This is the most popular option for those with bad credit. A secured credit card is issued against a fixed deposit (FD). The bank uses your FD as security. You can usually get a credit limit equal to 80–90% of the FD value.
3. Consider a High-Fee Unsecured Credit Card
Some banks offer unsecured cards to low-score applicants, but at higher fees. If you’re okay with higher annual charges, this can be a good way to build or rebuild your credit history.
Best Credit Cards for Bad Credit in 2025
Let’s look at some of the top choices available in 2025 for people with bad credit:
🟢 SBI Advantage Plus Credit Card (Secured)
Offered against an FD, this globally accepted card is ideal for rebuilding credit.
Key Features:
- Withdraw cash from ATMs worldwide
- Add-on cards for family members
- Convert big spends to EMIs
Fees:
- Annual fee: ₹500
- Interest rate: 2.25% per month (27% annually)
- Late fees: Up to ₹750
🟢 Axis Bank Insta Easy Credit Card (Secured)
Great for salaried professionals or anyone with an FD.
Key Features:
- Up to 80% of FD as your credit limit
- 1% fuel surcharge waiver
- Full credit limit can be withdrawn as cash
Fees:
- Joining & Annual fee: ₹0
- Interest: 2.5% per month
- Late fees: Up to ₹700
🟢 HDFC MoneyBack Credit Card (Unsecured)
If your salary is decent but credit score is low, this is a great starter card.
Key Features:
- 2 reward points per ₹150 spent
- EMI conversion available
- Zero liability after card is reported lost
Fees:
- Joining fee: ₹500
- Annual fee: ₹500
- Late payment fees: Up to ₹750
- Minimum due: 5% of total amount
🟢 IDFC FIRST WoW Credit Card (Secured)
Ideal for first-time credit users or those with no credit history.
Key Features:
- Guaranteed approval
- No income proof needed
- Reward points never expire
Fees:
- Joining & Annual fee: Nil
Downsides of Credit Cards for Bad Credit
While it’s possible to get a card with bad credit, be aware of the following limitations:
- Higher interest rates
- Lower credit limits
- Higher late fees
- Fewer perks & rewards
It’s important to start using your new card responsibly. This will improve your score. It will also help you qualify for better cards in the future.
Final Thoughts
Having a low credit score doesn’t mean you can’t get a credit card. With options like secured cards and credit cards from your primary bank, you can start your journey toward better credit.
Just remember: Use your credit card wisely, pay your dues on time, and don’t max out your limit. This way, your credit score will improve, and you’ll open the door to more financial freedom in the future.
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Credit Cards for Bad Credit FAQs
Q1: What is bad credit?
Ans. Bad credit means a credit score below 650, usually due to missed payments or poor financial decisions.
Q2: Can I get a credit card with a 550 score?
Ans. Yes, especially secured credit cards or cards from your own bank. You may need to pay a higher fee, though.
Q3: What are the best credit cards for bad credit in India?
Ans. Some of the top cards include SBI Advantage Plus, Axis Insta Easy, HDFC MoneyBack, and IDFC FIRST WoW Credit Card.
Q4: Do I need income proof for a secured card?
Ans. Not always. Many secured cards only require a fixed deposit.
Q5: Which banks offer secured credit cards?
Ans. Most major banks like HDFC, SBI, Axis, ICICI, Kotak Mahindra, and Bank of Baroda offer secured credit cards.
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