A poor credit score—typically below 600—can pose challenges in securing a credit card. Missed payments, high credit utilization, or limited credit history often lead to poor credit scores. However, low-interest credit cards provide an excellent opportunity to manage debt, save money, and rebuild credit effectively. Here are the top five low-interest credit cards tailored for people with poor credit scores.
SBI Unnati Credit Card
- Annual Fees: ₹0 (First 4 years)
- Renewal Fees: ₹499 (from the 5th year)
- Interest Rate: 2.50% per month (30% per annum)
Key Features:
- Contactless transactions for faster and safer payments.
- Add-on cards for family members, including parents, siblings, or children.
- Convert purchases into affordable EMIs with ease.
- Secure approval with a fixed deposit of ₹25,000 or more.
Why It’s Ideal:
The SBI Unnati Credit Card is excellent for those starting their credit journey or recovering from a poor credit score due to its fixed deposit-backed approval and minimal initial costs.
Axis Bank Insta Easy Credit Card
- Annual Fees: ₹0
- Joining Fees: ₹0
- Interest Rate: 2.50% per month (34.49% per annum)
Key Features:
- Cash withdrawal limit of up to 100% of the credit line.
- Flexible credit limits, with up to 80% of your fixed deposit.
- 1% fuel surcharge waiver across all fuel transactions.
Why It’s Ideal:
This card provides instant approval without extensive credit checks, making it perfect for individuals looking to rebuild their credit score quickly.
SBI Advantage Plus Credit Card
- Annual Fees: ₹500
- Renewal Fees: ₹500
- Interest Rate: 2.25% per month (27% per annum)
Key Features:
- Flexipay option for converting large purchases into easy EMIs.
- Balance transfer feature for consolidating debts at competitive rates.
- Credit limit of up to 85% of the fixed deposit amount.
Why It’s Ideal:
This card offers flexibility with EMIs and balance transfers, making it a reliable option for those managing existing debts while rebuilding credit.
HDFC Money-Back Credit Card
- Annual Fees: ₹500
- Joining Fees: ₹500
- Interest Rate: 3.49% per month
Key Features:
- Earn 2 reward points for every ₹150 spent.
- Convert purchases into SmartEMIs for more manageable repayment.
- Comprehensive lost card liability protection.
Why It’s Ideal:
The HDFC Money-Back Credit Card is an excellent starter for poor credit holders. It offers a balance between rewards and affordability.
IDFC FIRST WoW Credit Card
- Annual Fees: ₹0
- Joining Fees: ₹0
- Interest Rate: 0.75% to 3.65% per month (9% to 43.8% per annum)
Key Features:
- No proof of income is required for the application.
- Lifetime validity for reward points.
- Accessible to those with little to no credit history.
Why It’s Ideal:
The IDFC FIRST WoW Credit Card is perfect for first-time users with no credit history. Its competitive interest rates and no-cost structure make it highly appealing.
Benefits of Low-Interest Credit Cards for Poor Credit
- Debt Management: Lower interest rates mean less interest accumulation on outstanding balances.
- Credit Building: Timely payments improve your credit score over time.
- Affordability: Features like EMI conversion and balance transfer reduce financial strain.
- Flexibility: Access to credit without stringent eligibility requirements.
FAQs
1. Can I get a credit card with no credit history?
Yes, secured cards like SBI Unnati or IDFC FIRST WoW are designed for individuals with no or limited credit history.
2. How can I improve my credit score?
Pay bills on time, reduce credit utilization, and simultaneously avoid applying for multiple credit products.
3. Are low-interest credit cards better than high-reward cards?
If you carry a balance, low-interest cards are better as they save money on interest, whereas high-reward cards are suited for those who pay in full.
4. What documents are required for these credit cards?
Most cards need essential KYC documents like ID proof, address proof, and proof of income (if unsecured).
Conclusion
Low-interest credit cards are an effective tool for managing finances and rebuilding credit scores for individuals with poor credit. While these cards may not offer high rewards, they provide affordability and flexibility, crucial for financial recovery. With consistent use and timely payments, these cards can pave the way for a healthier financial future. Always compare card features and assess your repayment capacity before choosing the right card for your needs.
