October 21, 2024 · 16 mins read
Santosh Kumar
Credit Cards are beneficial financial tools that make spending both convenient and rewarding. When you own a credit card, you get benefits like cashback, reward points, discounts, special offers, etc. In today's digital age, you do not even have to go through the hassle of visiting a bank, standing in queues, and filling out multiple forms. Today, you can apply for the credit card of your choice online from the comfort of your home. You can explore various card options and compare benefits, all at the convenience of just a few clicks. Banks today have also started providing instant approval, making it quicker to get your credit cards. This comprehensive guide will teach you how to apply for a credit card online in India.
We will take you through the various factors that will impact your eligibility and then provide you with a step-by-step guide that you can follow and that will enable you to apply for a credit card online from the comfort of your home just in a few minutes and make the process smooth and hassle-free.
If you are wondering how I can apply for a credit card in India and if you are eligible to get one, then we will walk you through the various parameters set by Indian banks and financial institutions that must be met in order to apply for a credit card in India. These factors decide who can apply for a credit card. It is important to know this information before you start filling in an application form and to ensure that your application is not rejected. Let us go through all the factors one by one:
1. Age Requirements: If you want to apply for a credit card in India, you must keep in mind that most banks have an age range. While the minimum age requirement is 18-21 years (depending on each bank), the upper limit ranges between 60-65. If you fall between this age bracket, you can apply for a credit card in India.
2. Minimum Income Requirement: Income is one of the most crucial factors when you are applying for a credit card. Almost all banks have a minimum income requirement that must be met before they issue you a credit card. This is to ensure that you will be able to pay off your credit card bills on time. Each bank has a different minimum income requirement that can also vary based on the type of credit card that you are applying for.
It must be noted that a lot of banks offer credit cards for housewives without any income requirements as well. So, if you are a housewife, you can apply for a credit card without having a regular source of income. You can apply either for a supplementary card with your spouse or be the primary cardholder by backing your card with a fixed deposit as collateral.
3. Nationality and Residency: Nationality often determines your eligibility for getting a credit card in India. Certain banks issue credit cards only to Indian Nationals. Both Indian residents and Non-Indian residents (NRIs) can apply for a credit card in India. However, NRIs are often required to submit additional documents regarding their employment and residential status outside of India. For Indian residents, documents such as passports, Aadhar cards, PAN cards, etc are often required. A proof of address, such as an electricity bill, is also necessary.
4. Debts, Loans and Liabilities: Having too many existing loans and other liabilities often poorly impacts your eligibility for a credit card. Lenders need to make sure that you can manage more credit responsibly before they approve your credit card application.
5. Employment Status: Banks are concerned with your employment status because they have to ensure that you have a regular source of income. This is why salaried employees might find it easier to get their credit card applications approved. However, even self-employed people and entrepreneurs can get a credit card if they produce satisfactory documents proving that they have a regular income. The bank may ask for proof of employment or business and income verification documents like salary slips, bank statements, or ITR.
6. Credit Score: Your credit score plays a huge part in determining your eligibility for a credit card. Most financial institutions prefer a good credit score (700 or above) for issuing a credit card. This indicates that you have been financially responsible and signifies a lower risk for the lender. As in the case of income requirements, many banks offer credit cards to housewives without any credit history.
7. Existing Relationship With a Bank: If you have been associated with a particular bank for a long time, this would make it easier for you to obtain a credit card. This pre-established relationship might even compensate for a lower credit score or income.
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Before we take you through a detailed and comprehensive guide on how to credit card apply online, you must keep in mind the following factors that will help you make an informed decision on how to apply for a credit card.
Step 1: Know Your Particular Financial Requirements
Different people need credit cards for different needs. For instance, you might be looking for a credit card specifically for shopping purposes, or perhaps you need one for travel, good cashback, rewards, etc. Whatever your need may be, choose a credit card accordingly.
Step 2: Compare Different Cards
There are a lot of credit cards available to choose from. Every bank today has lots of different types of credit cards for various needs and requirements. Make sure you research well about the available options. Compare essential factors such as annual fees, interest rates, reward programs, and other benefits so that you can make the best choice.
Step 3: Check Eligibility
As discussed earlier, there are certain eligibility criteria set by each bank for approving credit card applications. Make sure you meet the eligibility criteria for your interest in the credit card before submitting your application.
Step 4: Submit Your Application
Once you have researched and chosen the best credit card to suit your specific financial needs and ensured that you meet the eligibility criteria, you can now submit your application. While you can always visit the bank, the entire submission process can be done online nowadays.
Step 5: Submit Required Documents
Along with your credit card application, you will be required to submit some necessary documents that will provide the bank with your basic personal and financial information, including proof of identity, address, and income. Make sure you submit these documents along with the application.
Step 6: Bank Verification and Approval
Once you have submitted the application along with the required documents, your details will be verified by the bank. Once everything checks out, you will be notified about the approval of your card.
Step 7: Activate Your Credit Card
Once you receive the credit card after approval, make sure to follow the instructions provided by the bank to activate it. You are now ready to start using your credit card.
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Now that you are informed about the basics of applying for a credit card let us dive into a detailed step-by-step guide of how to apply for a credit card online. This is important information because knowing how you can get a credit card online will save you a lot of time and effort. It will make the application process simple, smooth and easy.
1. Explore Options and Make Your Choice: The first thing you need to do before applying for a credit card is to obviously decide which card you want to apply for. As mentioned earlier, all banks offer different types of cards that come with their advantages. So visit your bank's official website and under the 'Credit Cards' section, you will be able to view all the cards being offered along with their features and benefits. Research well and make your choice.
2. Fill out the Application Form: Once you have made your decision, ensure that you meet all the eligibility requirements (income, age, employment status, etc.) to apply for that particular credit card and then you can proceed to fill in the provided online application form. You will be required to provide personal information such as name, phone number, address etc and financial details like PAN card and income details.
3. Submit Documents: After filling in the application form, proceed to carefully upload scanned copies of all the documents the website asks you for. The documents most banks ask you to upload include proof of identity (e.g. Aadhar Card), address proof (e.g. electricity bill) and proof of income (e.g. salary slips).
4. Wait for Verification and Approval: After submitting the documents, your task is done. You now have to wait for the bank to go through your documents to verify their authenticity. If you pass the check, the bank will approve your application in a few days. Many banks today even provide instant approval.
5. Receive Your Card: After you receive approval, the bank will issue your credit card to you. They will also provide you with instructions on how to activate it. Follow the given instructions and you are ready to start using your credit card.
Now you know how simple and easy it is to apply for a credit card online.
Prior to commencing the online application process, it is essential that you confirm the basic requirements are met. Banks and issuers look at three primary characteristics of an applicant: credit history, income and other current debt commitments.
1: Check your CIBIL score: Most banks in India expect a minimum CIBIL score of 700 for unsecured credit cards. Check your report ahead of time and fix any issues prior to submitting your application.
2: Obtain the appropriate documentation: Documentation you will need include proof of identity (PAN, Aadhaar, or Passport), proof of current address (utility bill, Aadhaar, or rental agreement), proof of income (salary slips, ITR, or bank statements). This documentation can assist in the application process and ensure it is completed in an efficient manner.
3: Consider the ratio of income to debt: Even with a good score, high existing debt may negatively impact your position. Lenders typically like to see applicants with a low debt-to-income ratio.
4: Examine the type of credit card you want to apply for: There are various types of credit cards designed for shopping, travel, fuel for groceries or utilities. Narrow down the best options based on your regular expenditures, and select a card that does not require unnecessary payment of an annual fee.
5: Compare joining fees: A card with higher fees is not automatically better. Weigh the benefits associated with it such as cash back, lounge access, and travel insurance versus payment of an annual fee.
One of the most exceptional resources online is the soft eligibility checker. This online tool allows you to find out the likelihood of getting approved before you formally apply.
What is a soft check?: A soft check or "pre-qualification" check will not affect your CIBIL score. This is a quick assessment that typically requires you to provide your income, occupation, and a basic overview of your credit history.
Where can you find them?: Most banks provide eligibility checkers on their websites. Third-party financial sites may also offer a soft check or pre-qualification tool that allows you to compare different credit cards.
Why use them?: They will save you time and unnecessary hard enquiries, while allowing you to short-list a few of the best credit cards to suit your profile.
Limitations : A soft check is not a guarantee of getting approved for a credit card. Your financial situation will undergo much deeper scrutiny, which would require you to present proof of employment stability, verify your income, and assess your repayment behaviour.
Just because you've applied online doesn't mean the process stops there. Here is our guide to what happens next:
Document verification: Banks check the records on the documents you submitted. If the documents do not line up, the decision will either take longer or will not be approved at all.
Credit check (hard enquiry): At this point, the bank pulls your credit report. Unlike soft checks, this will be recorded on your CIBIL history.
Application status: Most banks, if not all, allow you to track your application online through your reference number. The bank will update the listing if it requires documents.
Address and employment verification: Some issuers may call your employer, or go to the address provided in the application, or call lenders that have reported to the bureaus for verification, especially if you are applying for a card with limits that exceed your current bank cards.
Approval or rejection: Upon approval, your card is sent out in the mail, usually in 7-10 working days. If it is rejected, you will be notified by the bank or card issuer, although with limited details (they may not provide a specific reason).
Next steps: As soon as you get your card, activate the card according to the instructions. Set your PINS and log in to your accounts settings, and you may want to link it to your banking app for elevated spending tracking, if applicable.
Even trivial oversights can lead to denial or undesired delays. Be aware of the following:
1: Applying for multiple cards at once: If several applications are made in a short time period, multiple hard enquiries will show, and your CIBIL score will be reduced.
2: Inconsistent information: Income, address, and title must be consistent between documents or it will raise a flag in the review process.
3: Not checking for eligibility: Some cards explicitly state minimum income or credit score. Only apply if you meet those criteria to avoid unnecessary denial.
4: Hiding charges: “Lifetime free” cards may have fees for inactivity or for taking different types of payment.
5: Not checking t's&c’s: Many will overlook what the renewal fee is, late payment charges or what the fee is for a foreign transaction.
If you wish to apply for a credit card online in India, you must first be aware of the factors determining your eligibility for getting one. These factors range from your age, income and employment status to your credit score and residential status. If you are eligible to get a credit card in India, the process further ahead is very easy and now even completely digital. You just have to visit the credit card issuer's official website or mobile app and fill in the application form for your desired card. Along with it, upload and submit the necessary documents. After this, you only have to wait for the bank's approval, and then you will have your credit card in your hands within a few days, ready for use. In these few easy steps you can own a credit card that will suit your financial needs and bring you manifold advantages.
To apply for a credit card online, you need an address proof (e.g. Aadhar Card), PAN card, and Income proof (e.g. salary slip, income tax return, etc.).
Your credit card application might have been rejected because of one of the two reasons. Either you fail to meet one or more given eligibility criteria or you have not been able to produce satisfactory documents necessary to get a credit card.
You can apply for an add-on credit card online on the provider's website or mobile application.
Many banks offer credit cards that have no annual fee requirements. These are called lifetime-free credit cards. You can easily apply online for lifetime free credit cards.
Yes, most banks have a minimum age requirement to consider you eligible for a credit card. Often, the age limit can range anywhere between 18 and 21 years.
Yes, a lot of banks today offer instant approval on online credit card applications. All you need to do is fill in the e-apply form and upload the required documents.
Yes, you can re-apply if your credit card application gets rejected, but it is important to identify why your application was rejected in the first place. Avoid making those mistakes when you re-apply.
Banks are expected to safely destroy or anonymise applicant data after a specified time period, typically between 30 and 90 days. Certain banks may keep records longer for compliance processes, but they are restricted by data protection requirements.
Yes, most issuers do still want proof of income for application process, even for the low limit cards, although applying for a secured credit card against a fixed deposit, may or may not require proof of income documentation.
Many bank portals provide an opportunity to save your progress and complete it later in the application process (usually 7 days). Once you upload documents, you may not have the option to modify them if you choose to continue later. You will likely need to start the process over if you made the choice to upload documents at first, but wanted to modify them later.
No. There is primarily no cost to apply for a credit card on a bank website. (Banks may charge a one-time fee for joining a card program after approval and issuance of the card); but the application process is free.
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