Understanding the eligibility criteria for applying for a credit card is a necessary step in the process of getting a card. It doesn’t matter whether you are applying for your credit card for the first time or you have multiple cards. Don’t skip this step when you are deciding which credit card is suitable for you.
Eligibility Criteria for Credit Cards
Many credit card companies have exclusive eligibility criteria for applying for a credit card. However, in most cases, they follow a similar pattern, wherein you will find two different aspects:
- The first one is personal information and details to ensure you are a genuine applicant
- The next option consists of the factors that check your ability to repay borrowing credit
To dive deeper, you can check out how the following aspects decide your eligibility for a credit card:
Age
Age plays an important role in getting a credit card. Most issuers require you to be at least 18, though some start at 21 or 25. There’s usually no upper age limit, as you can get a credit card as long as you have a steady income. However, few issuers set it at 58 or 60, which is generally the retirement age.
Monthly Income
Whether you are an employed individual or an entrepreneur, you must have a stable monthly income to apply for a credit card. Generally, the eligible income range varies from urban and rural areas. The typical income requirements for metro cities start from ₹18,000, while it may start from ₹15,000 for rural areas.
Nationality
Banks have different credit cards for everyone, whether you’re a resident or an NRI. Just make sure you check the eligibility criteria. If you qualify, applying is a breeze.
Credit Score
Your credit score shows the card issuer how you have handled credit in the past. If you have experience with credit and have repaid it on time, your score is high. Aim for a score above 720 to get a credit card easily. Some factors that affect this score apart from timely repayment include:
- Credit utilisation ratio
- Length of credit history
- Types of credit experience
Existing Debt
When applying for a new credit card, issuers will look at your existing loans and credit cards to assess your financial situation. It’s a good idea to clear any current debt before applying.
Employment Status
Just like your income, the credit card company will also check your employment status as a salaried professional, business owner or freelancer. Based on your monthly earnings, the issuer you are applying with will decide your credit limit. It is best to ensure that you share your employment details along with proof of income.
Documentation of Credit Cards
Once you’ve verified that you are eligible for a credit card, you need to provide some documents to confirm your eligibility. You can check the issuer’s website for a list of what’s needed to keep things moving smoothly.
This way, you can ensure you’re well-prepared and speed up the verification process. Here are some of the typical documents that you will need to provide to get a credit card:
- Filled-out application form
- ID proof (you can offer a PAN card, Aadhaar card, Passport, Voter’s ID, etc.)
- Address proof (PAN, Aadhaar, Utility bill, Driving License, etc. will work)
- Income proof (salary slip from employed individuals or bank statements from business owners)
- Two to three passport-size photographs
- Form-16 if you are a salaried employee
- Student ID if you are a student and going for a student credit card
- Business proof for commercial cards
- FD documents or receipt if you are getting a secured credit card
Why Use a Credit Card?
As you check the eligibility and documentation requirements, remind yourself why you are getting a credit card and choose your card wisely. Here are a few advantages of using a credit card:
- Access to instant credit for purchases or transactions with the option to pay later
- Earn rewards, cashback, or points on spending
- Enjoy flexible repayment options with EMIs
- Build and improve your credit score
- Get additional perks like discounts, travel benefits, and insurance
- Ability to use cash advance features during emergencies
- Helps build and improve your score over time
- Offers fraud protection and enhanced security
Knowing these benefits is imperative to evaluate your need for a credit card. If you decide to get a credit card, you can move to check the eligibility and then proceed to the application stage.
Nowadays, most issuers rely on digital application processes, which ensure minimum paperwork and quick approval.
This is why the One Credit Card allows you to apply through its full-stack OneCard App. Using this app, you can apply for the card with a completely digital process, and once you get approval, you can use the same app to manage your card.
With the One Credit Card, you can enjoy 5X monthly reward points on your top two spending categories. Moreover, this card is lifetime-free, meaning there are no additional charges to use the card. Visit the website or download the app to apply now!
