BAGHDAD, Aug 25 (Reuters) - A car bomb killed seven people and wounded 30 in a commercial area in northern Baghdad on Saturday, police said, despite a stepped-up security presence in the capital ahead of a Shi'ite religious festival next week.

The bomb exploded in Kadhimiya, a Shi'ite district. Police had few details.

Baghdad, which has witnessed a major security clampdown since February, is feeling the effects of even tighter security restrictions as the Iraqi army and police erect more vehicle security checkpoints to hamper the movement of car bombs.

Tens of thousands of Shi'ite pilgrims are expected to gather is the southern holy Shi'ite city of Kerbala next week to mark the birth of Imam Muhammad al-Mahdi, a messiah-like figure whom Shi'ites believe will return to save mankind.

Such events are major targets for al Qaeda and other Sunni Arab militant groups. Pilgrims walking from Baghdad and other cities to Kerbala are often vulnerable to attack.

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