Learn how to increase your CIBIL score with the FIRST EA₹N Credit Card

Have you ever wondered how banks decide if you’re loan-worthy? Meet Rohan, a 30-year-old professional looking for funds to construct his home. When he decided to apply for a home loan with a bank, his application was rejected.

This happened because Rohan, like many others, did not focus on improving and maintaining his CIBIL score. The CIBIL score, determined by the Credit Information Bureau (India) Limited, assesses an individual’s creditworthiness and plays a key role in credit approval decisions.

If you want to avoid making the same mistake as Rohan, this guide will help you.In this article, you will learn how to check and increase your CIBIL score, especially using the FIRST EA₹N Credit Card from IDFC FIRST Bank.

What is a CIBIL score, and why does it matter?
 

A CIBIL score is a three-digit number representing your credit history that lenders use to assess your creditworthiness. While the CIBIL score ranges between 300 and 900, a score above 750 is considered excellent.

A higher CIBIL score means you are more likely to get loans or credit card approvals. The following factors influence your CIBIL score –

1. Payment habits - Ensure you pay your loans and credit cards on time to build a positive payment history.
2. Credit utilisation - Regularly reduce your outstanding debt to show responsible borrowing behaviour.
3. Credit mix - Maintain a healthy mix of credit types (e.g., loans and credit cards) to enhance your score.

But what if you’ve never had a credit history? It would mean that lenders have no way of assessing your creditworthiness. This would restrict your access to credit tools, reducing the number of opportunities to increase your score.

In such a situation, you might wonder how to improve your CIBIL score immediately. While there are no quick fixes for this situation, careful planning can go a long way in helping you improve your CIBIL score. For instance, IDFC FIRST Bank offers the FIRST EA₹N Credit Card to first-time credit users.

Let’s see what it is and how it helps increase your CIBIL score.

What is the FIRST EA₹N Credit Card?
 

The FIRST EA₹N Credit Card is a secured credit card designed for everyone, including first-time credit users. Backed against a fixed deposit (FD) of at least ₹5,000, the card does not require any prior credit history and provides a minimum credit limit of up to 100% of the FD value.

Available with a ₹0 joining fee for a limited time and an annual fee of ₹499 + GST, the card offers several benefits to first-time credit users. You can also get the annual fee waived by spending ₹1 lakh or more in the previous year.

Some of its benefits include:

1. No credit history needed

Even if you’ve never taken credit before, you can apply for the FIRST EA₹N Credit Card. All you need is an FD with IDFC FIRST Bank to get started. This makes it an ideal option for beginners looking to establish and increase their CIBIL score.

2. Virtual card

Forget carrying a wallet everywhere! The FIRST EA₹N Credit Card is made available to you virtually. This means you can make payments with a few taps on your phone without the hassle of always carrying a card with you!

3. Accepted almost anywhere

From online shopping to paying at physical stores, the FIRST EA₹N Credit Card works everywhere. By scanning the QR code, you can make secure online payments using your UPI app at over 60 million stores worldwide.

4. Earn while you spend

Since an FD backs the FIRST EA₹N Credit Card, your money keeps growing even as you spend. Earn 6.3% interest per annum on your fixed deposit while you use your credit card to improve your CIBIL score!

5. Cashback rewards

With the FIRST EA₹N Credit Card, you earn 1% cashback on all UPI transactions made directly through the IDFC FIRST Bank Mobile Banking App. This applies to purchases or payments made within the app, ensuring higher cashback for app users.

Moreover, there is a 0.5% cashback for any transactions carried out via other UPI apps, such as –

• Online shopping
• Utility bill payments
• and wallet loads

How to increase your CIBIL score with the FIRST EA₹N Credit Card?
 

One of the easiest ways to improve your CIBIL score is by paying your credit card bills on time. Using the FIRST EA₹N Credit Card, you can build a good payment history, which is a significant factor in deciding your CIBIL score. Additionally, you can take other steps like –

1. Maintain a low credit utilisation ratio

Your credit utilisation ratio is the percentage of credit limit you decide to use on transactions. While the FIRST EA₹N Credit Card provides a minimum limit of 100% of the FD value, it is recommended that you keep your spending below 30% of your available credit limit.

2. Use the card regularly

To show consistent credit activity, use the FIRST EA₹N Credit Card for regular purchases. Regular usage and repayment show lenders that you are a responsible borrower. This increases your CIBIL score over time.

3. Pay more than the minimum due

Paying only the minimum due increases your outstanding balance. This negatively affects your CIBIL score. Hence, try to pay more than the minimum amount due on your FIRST EA₹N Credit Card. This reduces your debt and builds a stronger credit profile.

Conclusion

Maintaining a strong CIBIL score is crucial for accessing credit opportunities. By adopting good financial habits and using tools like the FIRST EA₹N Credit Card, you can effectively build your CIBIL score. With consistent usage, timely payments, and managing your credit utilisation ratio, you can improve your CIBIL score gradually and enhance your financial future.

Ready to increase your CIBIL score? Apply for the FIRST EA₹N Credit Card today!