When it comes to credit card approval, meeting the eligibility of the credit card issuer is important. Different banks may have different parameters of eligibility. If you do not meet the requirements set by them, your application may be denied which may also cause a dip in your credit score. So, if you have never owned or applied for a credit card earlier and are wondering how to get one, read on to understand Credit Card eligibility criteria.
What do banks consider before issuing Credit Cards to customers?
Factors that influence Credit Card eligibility are:
• Age: Applicants must have a minimum age of 18 years. However, some banks have a minimum age criterion of 21 years. The maximum age for a credit card application is 60 years.
• Income: You must have a regular source of income, whether you are salaried or self-employed. However, we suggest that you check this with the bank with which you are applying for a credit card.
• Bank account: You must have a savings account in your name
• Creditworthiness: You should have a good credit history. There should be no defaults on loans or credit repayments if you have availed. Your creditworthiness will be checked through your credit score. So, make sure your credit score is good. Chances of your credit card application improve when your credit score is at least 750 or higher.
• Nationality or residential status: Citizens, residents, and non-residents can apply for a credit card. However, some banks only let resident Indians apply for a particular credit card.
These are some of the Credit Card eligibility criteria to apply for basic credit cards. If you want to apply for the best credit cards, premium/co-branded cards, then they might have different eligibility criteria, including higher income requirements, better credit score, and a long-standing relationship with the bank.
Documents required for a credit card application
The documents you will require to furnish with your application form may differ from one bank to another. However, below is a list of some of the basic documents that you will need to submit:
For salaried individuals:
• Completed application form
• Passport-size photographs
• Proof of identity (copy of PAN, Aadhaar, passport, etc.)
• Proof of residence (utility bills, driving license, PAN, Aadhaar, etc.)
• Latest salary slips
• Form 16
• Bank statements
• Income proof
• Statement of accounts
• Proof of business
How to improve your chances of getting approved for a credit card easily?
Here are some of the techniques that you should use to improve your chances of being approved for the credit card of your choice:
1. Get a free copy of your credit report. Check carefully for errors and rectify them before applying for a credit card.
2. Apply only for that credit card which best suits your spending needs and repayment capacity.
3. Talk to the banker personally before applying for your first credit card. The banker can help you choose the right type of credit card.
4. Do not apply for too many cards from the same issuer.
5. Do not forget to compare different cards and check your eligibility online either on your preferred bank’s website or through any Fintech portal.