How to Check Your Credit Card Eligibility?

This is one of the most common credit card eligibility criteria set by the majority of the issuers. They consider your age because it gives them insight into your experience with handling finances. It also tells them about your income stability.

For instance, if you are under 18, you are likely a student with no consistent income source and little experience in handling financing. On the other hand, if you are over 60 or 65, you are likely retired or near retiring. As such, you will probably lose a stable income source.

Both these situations weigh down your risk profile, making the issuer hesitant to approve your application. This is also why most issuers set an age limit of over 18 years and under 60-65 years. So, check this on their website to see if you are within the age range.

Verify Employment and Income

Your income plays a crucial role in determining your credit card eligibility. This is because it is a direct indicator of your ability to pay the bill on time. Similarly, your employment history also indicates the stability of income.

As such, most issuers have minimum annual or monthly income criteria with an employment record of 3 to 5 years. This will vary depending on the card, your area of residence, and the issuer. So, check on the official website and verify if you meet these requirements.

Review Your Credit History and Score

Both these factors determine your creditworthiness and, therefore, are very crucial to your credit card eligibility. Both these are determined by your repayment behaviour and are indicative of your ability to pay the future debt on time and in full.

As such, issuers prefer applicants who have a clean repayment history and a score above 700, which makes you a low-risk borrower. However, this will also vary depending on the issuer. So, check your credit score and report to see if they meet the issuer’s requirements.

Assess Other Requirements

In addition to the above-mentioned criteria, issuers may have other requirements. These are equally important as the others, so you must check and assess before applying. You can find these requirements on the official website for the card you want to apply for.

Importance of Checking Eligibility Before Applying

Assessing your credit card eligibility before applying is crucial for many reasons, some of which are:

Seamless Application

Your eligibility directly affects how smooth your application process will be. If you don’t qualify, some issuers may not even allow you to apply for a credit card. Some may request additional documents and proof to assess your ability to pay on time. Even then, approval is not guaranteed.

Higher Chance of Approval

It’s no secret that good eligibility will improve your chances of approval. In fact, many issuers will offer pre-approved credit cards if you have good eligibility. Additionally, if you are a creditworthy applicant, the process will also be more seamless and quicker.

Protects Credit Score

If you do not meet the credit card eligibility requirements and still proceed with the application, there is a possibility that the issuer will reject your application. However, in order to decide whether to approve or reject your application, they will check your credit score.

This action causes your score to dip slightly. In case they reject your application, this too will reflect in your credit report. Both these factors adversely affect your credit score. However, the impact is not permanent, and you can improve your score by following some smart tips.

One of these is to not apply for cards frequently and simultaneously. The best thing you can do is to check the terms, make sure you qualify and take your time to apply for the right card.

Easy Tips to Boost Credit Card Eligibility

If you don’t meet the credit card eligibility requirements set by your preferred issuer, try tips to improve it before you apply:

● Repay any overdue loan or previous credit card amounts

● Pay your existing dues consistently and on time

● Try to prepay your dues if you can and reduce your debt

● Lower your debt-to-income ratio further by closing a credit account

● Optimise your credit utilisation ratio to keep it within acceptable limits

● Set up auto-pay or auto-debit to avoid missing any payments

● Opt for debt consolidation to streamline repayment of multiple debts

● Increase your income to meet the issuer’s requirements by asking for a raise or with a new job or freelance opportunity

● Maintain stable employment to showcase income stability and repayment ability

Remember, improving your eligibility will take time. It is certainly not something you can achieve overnight. So, be consistent and persistent in your efforts to become eligible for a credit card of your choice.

Armed with these tips, you can easily apply for a credit card of your choice and access instant credit without any hassles. Remember to compare your options before applying. This is as important as checking your credit card eligibility!

A thorough review and comparison of credit card offers will allow you to choose one that suits your needs and is easy on the pocket. Don’t forget to check the annual and joining fee, interest rate, rewards structure, redemption process and charges.

Moneycontrol Journalists are not involved in creation of this article.