Credit Card Eligibility: The process of eligibility criteria for credit card differs from bank to bank, based on the card you apply. Check-out your credit card eligibility & the factors affecting it at Moneycontrol.
There are several factors that can result in your credit card rejection. Here’s how you can be eligible When you start earning, you will get a call from the bank asking whether you would like a credit card. Usually, you will reply in the affirmative, but before you get the chance to hold some plastic money, you will be asked a series of questions for which you need to provide documentation. This includes your bank statements, your salary slips, and your proof of address. This process is called credit card eligibility, and basis this you will be given the credit cards. Do remember that eligibility is different for different banks, and each bank – based on the card you apply for – will have its parameters. In case you don’t meet these requirements, then your application will get rejected.
Factors that affect your credit card eligibility
Before you apply for a credit card, make sure you check the terms and conditions and the eligibility criteria. If you don’t meet the eligibility criteria, it’s most likely that the bank will reject your credit card application.
- Age: The applicant must be 18 years or over. However, there are some banks that have a minimum age criterion of 21 years. The maximum age for credit card application is 60 years.
- Salary: You need to be an earning member to be eligible for a credit card. Usually, you should earn a minimum of Rs 3 lakh per annum. However, we suggest that you check this with the bank with which you are applying for a credit card
- Nationality or residential status: Citizens, residents, and non-residents can apply for a credit card. However, there are some banks that only let resident Indians apply for a particular credit card.
Factors that affect your credit card score
If you are applying for a credit card, then your approval will be based on the additional following factors, besides the generic ones mentioned above
- Credit score: A good credit score is anything between 750 and 900. If you have anything below this score, chances are your application may get rejected. You can improve your credit score by paying previous credit card bills, personal or home loan EMIs, etc on time i.e. have zero bad debt.
- Existing debt: The bank giving you the credit card will also check your previous card payment history to see if you have paid your bills on time. If your history shows delay in paying of bills, then chances of getting a card may significantly drop.
- Employment: You need to have a stable job, and provide your salary slips for the past 3-6 months (depending on the bank) to the bank issuing the credit card. Ideally, if you have stayed at your workplace for a year, chances of getting a card may increase.
- Location: Some banks issue cards basis the city you live in. So, you may want to check the eligibility criteria of the particular card you are applying for before you take the step.
Documentation required to apply for a credit card
There are two types of individuals who apply for a credit card
Salaried individuals need to submit the following documents
- Filled out credit card form
- Proof of address (Passport, Aadhaar, Driver’s licence, voter ID)
- Proof of photograph (PAN, Passport, Aadhaar, Driver’s licence, voter ID, ration card, utility bills)
- Last 3-6 months’ salary slips (depending on the bank)
- Form 16
- Bank statements
- Passport-sized photographs
In case you are self-employed, you will be required to submit the additional documents
- Income proof
- Proof of business
- Statement of accounts
How to check if you are eligible
There are several factors to check your eligibility; some of these are common for all banks, but others can be bank-specific
- Each bank has a number of credit cards to choose from. When you are on the bank website, you are also given the option to compare the credit card you’re interested in with other cards. Who knows? The other cards may have benefits that could divert you from your first-choice card
- Once you choose your card, you would be required to mention your details, which includes the name of your company/business.
- Mention your annual salary
- If you already have a card, then certain banks will ask you which one it is. Basis this record, the bank usually checks your credit payment history, and deems you eligible based on your credit score
- Enter your age and contact details