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Credit Card eligibility criteria: All you need to know about required documents, credit score and more
25 November, 2024 | 13:02 IST
A credit card has become an essential financial tool for many in India, offering convenience, rewards and easy access to funds. Banks and financial services providers have varied credit card eligibility criteria for issuing credit cards. Understanding these can improve your chances of approval for your credit card application.
Credit card eligibility criteria refer to the set of requirements that banks or credit card issuers use to evaluate whether a person qualifies for a credit card. Each issuer may have slightly different criteria, but some common factors include age, employment status, income, and credit score.
Age: To apply for a credit card, in India, most issuers require their applicants to be between 18 to 60 years of age. Some card issuers may have a minimum age requirement of 21 years.
Employment status: Your employment status also comes into play in determining your credit card eligibility. Banks usually require you to be either salaried or self-employed. Salaried employees working for a reputable company or in a government job are often seen as lower risk, increasing the chances of approval. If you are self-employed, you need to demonstrate a stable income stream. If you are not employed, i.e neither salaried nor self-employed, you can opt for an add-on card that is tied to the primary credit card holder’s account .
Credit score: One important factor in determining your credit card eligibility is your credit score, which reflects your creditworthiness. A higher score, i.e one that is 750 and above increases your chances of approval. If you have a low credit score, credit card issuers may either reject your application or offer you a credit card with a lower limit or higher interest rate. You can also opt for an FD-backed credit card that doesn't require a credit score. On the Moneycontrol app, you can monitor your credit score regularly and receive personalised credit card offers.
Credit history: Banks also evaluate your existing debt and credit history when determining your credit card eligibility. If you already have loans or credit cards with significant outstanding balances, it may impact your chances of approval. Lenders prefer applicants with a good credit history, as this demonstrates responsible credit behaviour.
Nationality and residential status: To be eligible for a credit card in India, you must be a resident Indian citizen or a non-resident Indian (NRI) with valid documentation. The exact criteria depends on the card issuer.
When applying for a credit card, you’ll need to submit certain credit card docs for verification. Providing accurate documentation helps the lender process your application smoothly.
Identity proof: When you apply for a credit card, lenders use your proof of identity to establish who you are. Most banks in India accept credit card docs such as Aadhaar card, PAN card, passport, voter ID or driving licence as valid proof of identity, making it easier to verify your credentials during the application process.
Address proof: To verify your residential location, banks require your proof of address. They accept utility bills, such as those for gas, water or electricity, as well as passports, ration cards and even rental agreements, if applicable.
Proof of income: Online credit card applications do not need you to upload any separate income proof if you already have a credit score. In certain cases, the lenders may ask you to furnish bank statements to assess your ability to repay credit card bills. Self-employed individuals have to submit income tax returns for the past two years and bank statements from the last six months to verify their financial standing.
To increase your chances of approval, here’s how you can improve your credit card eligibility:
Maintain a healthy credit score: Your credit score is one of the most important factors in determining your credit card eligibility. Regularly check your score on the Moneycontrol app, and make sure to pay bills on time, clear outstanding debts, and avoid applying for multiple credit products simultaneously.
Clear existing debts: Before applying for a new credit card, try to reduce any outstanding debt on existing loans or credit cards.
Choose the right credit card: Banks offer a wide range of credit cards, from entry-level to premium. Choosing a card that matches your income and financial profile will increase your chances of approval.
Meeting the credit card eligibility criteria is the first step toward unlocking the many benefits of a credit card. Irrespective of whether you are new to credit cards or looking for an upgrade, it is important to understand the key factors that determine your eligibility, such as income, age, credit score and employment status. Using Moneycontrol, you can view credit card offers from partner banks based on your credit profile. Regularly checking your credit score and staying informed about your eligibility will help you make better financial decisions.
Understanding the key factors that determine credit card eligibility—such as income, age, credit score, residential status and employment status—can improve your chances of getting a credit card.
Disclaimer
This piece/article was written by an external partner and does not reflect the work of Moneycontrol's editorial team. It may include references to products and services offered by Moneycontrol.
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