Credit Card Eligibility Details

From time to time, personal finance experts have explained the potential dangers of using a credit card. Yes, if overused, credit cards have the potential to push the cardholder into a debt trap. However, if used wisely, credit cards offer a wide range of benefits and will help you save while you spend. Though getting a credit card is very easy these days, there are certain eligibility criteria you must meet to get one. The eligibility criteria for a credit card differs from one bank to another.

Depending on the type of credit card you want to apply for, you will be required to furnish certain documents to prove that you will be able to handle the cost of owning that card. If you are planning to apply for a credit card and want to know if you are eligible, read on.

Eligibility Criteria For Credit Cards

The eligibility criteria to apply for a credit card varies greatly not only across lenders but also for every card offered by a particular lender. As each card is exclusively designed to suit certain spending habits of the cardholders, the eligibility criteria differ.

Some of the basic eligibility requirements to be met are as follows:

• The minimum age of the applicant should be 18 years and the maximum age can go up to 70 years. However, the minimum and the maximum age requirement for few credit cards is 21 years and 65 years, respectively.
• The city you live in will be considered when you apply for a credit card. There are certain cards that can be applied for only by people residing in an urban city.
• If you are a salaried individual, most lenders prefer their applicants to have been in their current job for more than a year. The income criteria differ from card to card.
• Your credit score plays a great role when you apply for a credit card. All credit card providers prefer their applicants who have a good credit score. Your credit card application will most likely be rejected if you have a low credit score.
• Few credit cards in India can be applied for by Indian residents only. However, many credit cards in the country can be applied for by citizens, residents, and non-residents.
• Self-employed applicants should submit income proof, PAN, income tax proof, and other relevant documents to get a credit card.
• Most banks also issue credit cards against fixed deposits. So, if you have a fixed deposit with a bank, you may be eligible to apply for a credit card.

Documents Required To Apply For A Credit Card

The documents required to apply for a credit card depends on the lender’s norms. However, the basic documents you will be asked to submit when you apply for a card are as follows:

• Duly-filled credit card application form
• Passport size photographs
• The identity of Proof such as a copy of PAN, Aadhaar, passport, etc
• Proof of Residence such as a copy of Aadhaar, passport, utility bills, driving licence, etc
• Latest salary slips
• Form 16
• Bank statements
• If self-employed, you may be asked to submit documents such as income proof, statement of accounts, proof of business, etc
• If you are applying for a student credit card, you will be asked to submit a copy of your student ID card

How To Improve Your Credit Card Eligibility?

Though credit card providers have strict eligibility requirements and the lender has the sole right to either accept or reject your credit card application, there are many things you can do to improve your eligibility.

Some of the steps you can take to make sure your credit card application is accepted are as follows: 

• Always check your credit score before you apply for a credit card. If you have a low credit score, consider clearing debt and apply for a credit card after your credit score has increased. Did you know you can get a free copy of your credit report from each of the credit reporting agencies in India, namely TransUnion, Experian, and Equifax?
• When you apply for a credit card, make sure you have stable income for the last few months. Your income plays a crucial role when you want to get a credit card.
• Increase your creditworthiness by borrowing and repaying promptly. Not having any loans or credit card will not increase your creditworthiness. Availing credit and repaying without missing a payment will help you build your credit score.
• If you have a credit card and are applying for a second card, make sure you do not have a huge outstanding balance on your existing credit card.
• If you have multiple lines of credit like a personal loan, home loan, car loan, and few consumer durable loans, consider consolidating your debt and clearing some of it.

How To Check If You Are Eligible To Get A Credit Card

Given that every credit card can differ in its eligibility requirements, it is important to check if you are eligible to apply for that particular card before submitting your application form. Most of the credit card providers in India mention the eligibility criteria clearly on their official website. They also allow cardholders to apply for a credit card online. Once you submit your online application form, the lender will get in touch with you via phone or email. 

Alternatively, you can compare various credit cards available in the market and apply for one on BankBazaar. You can filter your credit card search results by entering key details about you, and BankBazaar will show your credit cards that you are eligible to apply. This makes the task of finding the right card easy for you. 

You can also get in touch with the bank you hold a saving account with and check if you are eligible to apply for a credit card. However, it is not mandatory to hold a bank account with a particular bank to apply for a card. You can apply for a credit card with any bank even if you do not hold a bank account with them.