Maintaining a healthy CIBIL score is crucial for accessing various financial benefits, including lower interest rates on personal loans and better credit card deals. However, several factors can negatively impact your CIBIL score. Prepaid credit cards offered by financial institutions like banks present a viable solution for improving your CIBIL score. These cards facilitate cashless transactions and help you avoid debt. Here’s an overview of five popular prepaid credit cards that can contribute to enhancing your CIBIL score:
Understanding Prepaid Credit Cards
Prepaid credit cards differ from traditional credit cards as users need to transfer funds into the card account before utilization. This eliminates the need to borrow funds, offering a controlled and debt-free spending experience. With a predetermined spending limit set by the user, prepaid cards come with zero overdraft fees and interest charges.
Top Five Prepaid Credit Cards to Improve CIBIL Score
- Axis Bank Smart Pay Card: This card enables electronic disbursement of salaries, incentives, and reimbursements. It eliminates the need for maintaining a minimum balance and offers validity in Axis Bank ATMs nationwide. With a high ATM withdrawal limit of Rs. 20,000 and a purchase limit of Rs. 1,00,000, it provides flexibility and convenience.
- HDFC Bank GiftPlus Card: The GiftPlus Card allows you to select your prepaid card amount at any HDFC branch via net banking. It boasts wide acceptability and entails no usage fee deductions, requiring only an issuance fee of Rs. 100 and Rs. 10 for balance inquiries.
- SBI NMRC City 1 Card: This contactless, EMV chip-based prepaid card offers stored value functionality for secure and seamless payments. Designed for use on the Noida – Greater Noida Metro and extended to Noida Metro buses, it facilitates convenient fare payments.
- HDFC Moneyplus Card: Tailored for corporate employees and business partners, this electronic prepaid card offers features like easy loading via Enet and direct debit or cheques. It provides access to NetBanking and PhoneBanking, along with the ability to check balances at any Visa/Rupay ATM in India.
- HDFC Bank ForexPlus Chip Card: A multi-currency forex card with 22 currency wallets, this card enables cash withdrawals and POS transactions in any currency worldwide. Additionally, it offers complimentary insurance coverage for added peace of mind.
While these prepaid credit cards provide a viable means to improve your CIBIL score, it’s crucial to note that they cannot solely guarantee a boost. Regularly monitoring your credit report and avoiding excessive credit card use are essential practices to maintain a healthy credit score. These prepaid cards, combined with responsible financial behavior, can contribute significantly to a positive credit profile.
