Do you ever feel that you badly need a credit card? But have somehow always failed to meet the required criteria. In that case, having good knowledge about the eligibility criteria can make things much more straightforward, improving your chances.
Here’s a list of things you need to be aware of to fulfil credit card eligibility requirements:
You Must Be Over 18 Years
Although it might be a very obvious thing, one must not forget that to qualify for a credit card the person must be an adult (18 years or above). All citizens, residents and non-residents can apply.
Employment and a Stable Income Source
Having a job and regular income is one of the most important eligibility factors for a credit card. You can be a salaried or self-employed individual. Credit cards with higher limits need holders to have higher annual income. For instance, for a credit limit of ₹5 lacs and more, you might be required to have an annual income of ₹36 lacs. Having a steady source of income assures the bank of your creditworthiness.
A Good Credit Score
A higher credit rating goes a long way to help you qualify for a higher limit credit card. Bill repayment history is the main determinant when it comes to calculating your credit score. Therefore, you must pay all your bills on time and avoid lapses. Multiple hard inquiries can also impact the credit score. This is why; you need to avoid applying for many credit cards, even if you fulfill the eligibility criteria.
Existing debt is also a very big factor in deciding whether you are eligible or not. Having existing debt on your account affects your credit score. Therefore, you must always keep your debt under control.
Also, it would be helpful to learn what is a consumer proposal, and use it if this situation si at stake. In short, it is a legal process that allows you to negotiate with your creditors to create a repayment plan that suits your budget. As a result, you may be able to settle your debts for less than what you owe and avoid bankruptcy.
Different banks might need a different set of documents. However, most commonly you will need to provide your Aadhar card, any other proof of identity or address, PAN card, completed application form, latest income proof, bank statements, and proof of business (if self-employed).
As you would have observed, there are several eligibility criteria that you need to meet to obtain a credit card. Apart from these factors, there can be many other things banks consider such as your location, no records of default, or your age.
You must try to acquire a good understanding of how to make the best use of your credit card. Also, before you get yourself a card, you must not forget to compare different cards, check the perks, and keep an eye out as to what payment offers a particular credit card is providing. Such factors go on to have a major influence on finances in the longer run.
Credit card application is easy online, where you can also find eligibility factors. You have to simply upload the required documents, and provide your contact details to start the process.