October 29, 2024 · 15 mins read
Santosh Kumar
Credit cards have become very popular For their convenience, many benefits and their role in helping you build a credit score-. This is why many people want to know the eligibility criteria for acquiring a credit card. But before we understand the eligibility criteria, let us first understand what makes credit cards so desirable and then find out if you are eligible for one or not.
A credit card has become a very essential financial tool that provides financial flexibility and opportunities to individuals. It allows users to avail of short-term loans to support instant purchases directly from their credit accounts without any waiting period. They work on the principle of credit that must be paid back, usually within a stipulated period of time. Unlike a debit card, which works on the principle of withdrawing from a linked deposit account, credit cards come with a credit limit set by the issuer, like a bank or a non-banking financial institution.
Credit cards are the most popular modes of payments in today's day and age; they are easy and hassle-free and give users a sense of financial independence and the opportunity to afford small and sometimes big purchases without having to apply for a loan or undergo a waiting period that normally happens in case of availing a loan. They have become very popular and are an easy source of credit that can be used for day-to-day expenses, emergencies, and business expenses. They are accepted on all kinds of platforms, whether it is virtual or offline, from restaurants to e-commerce websites to flight bookings, and even allow for cash withdrawals in case of emergencies.
1. Convenience- Credit cards are known for their convenience- they provide the financial flexibility to be able to make purchases and pay bills on the basis of credit. They can serve as emergency funds during times of need and provide a safety net. It makes shopping, booking tickets, and paying for services easy and hassle-free.
2. Credit limit- Each credit card has a pre-approved credit limit that allows users to support their expenses, make purchases, etc. The credit limit is generally based on your income status as well as your credit score. The higher your income and credit score, the more likely you will have a higher spending limit.
3. Interest rates- Since a credit card works on the principle of borrowing, the borrowed amount has to be paid in full by the due date; failing to do so will result in interest charged on the remaining amount.
4. Added perks and benefits- Apart from its functional use as a financial tool and a mode of payment, a credit card also comes with rewards, perks and benefits. For frequent shoppers, reward points can be redeemed for gifts and discounts. For frequent travellers there are travel discounts, bonus vouchers and airport lounge access with the best services. There are also bank specific discounts and coupons while making purchases for both online and offline purchases, which is very useful to save some money while shopping.
5. Fees and maintenance- Credit cards normally levy a certain fee that may be categorised as annual maintenance, transaction fee, cash withdrawal fee, etc. These fees are deducted from your account; it is important to be aware of the cost and maintenance of a credit card.
6. Security and protection- To prevent fraudulent activities, scamming and phishing activities- most credit cards come with added features like fraud protection, real-time alerts for transactions and multiple-step verification and authentication processes for transactions and other account-related activities.
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When it comes to the eligibility criteria for obtaining a credit card, every bank and issuer has its specific criteria, but there is a general consensus among some aspects. Although different issuers and different banks have their own standard eligibility criteria, these criteria listed below are common ground and are applicable to everyone who wishes to apply for a credit card.
1. Minimum Age Requirement – The first eligibility criterion is that most banks in India require the applicant to be 21 years minimum for them to be able to apply for a credit card. For a primary card holder, 21 is the required age, some banks may allow younger applicants provided that they are not the primary beneficiary of the credit card and have a guardian supervising and co-holding the credit account. This is done to ensure that only adults with a basic understanding of finance and money may be allowed to possess a credit card. The maximum age limit for credit card in India generally extends up to 65 years of age at the time of application.
2. Citizenship or nationality- Another major criterion is nationality; to apply for a credit card in India, you must be a resident Indian citizen. There are provisions for Non-Resident Indians, but they need to provide all the necessary documents and fulfil additional criteria before being considered and approved for a credit card in India.
3. Income- Another criterion is your income status; it is a crucial factor that determines the approval and the type of credit card you may be offered. An employed person needs to furnish their salary and monthly income details, and for self-employed or business organisations they need to establish their source and proof of income and monthly or yearly income generation. Further, your employment status is also considered while issuing a credit card- whether you are currently employed, seeking employment or, self-employed or running a business – all these factors will have an impact on your eligibility.
4. Credit Score- Another very crucial factor is your credit score, most banks consider an application for a credit card only if you have a good credit score. The higher your score, the better your chances of securing a credit card, and the lower your credit score- the harder it will be for you to convince banks to issue you a credit card.
5. Current financial status – This includes your existing loans, debts and any other financial obligations that you may have under your name. If you have ongoing loans and debts, banks and other issuers may need to assess your debt-to-income ratio to gauge your creditworthiness. Generally, the lesser the ratio, the more favourable it will be for you.
6. Documents and proof- when applying for a credit card, it is important that you have all the required documents which are updated and accurate. The most common set of documents required is- Proof of identity, proof of address, and proof of income. Apart from these factors, some banks also take into consideration other factors like whether you are an existing customer or a new one etc.
7. Special provisions- If you have a low credit report but still want to acquire a credit card, then you can apply for a joint credit card by applying with a co-applicant with a stronger credit report who can support your application and increase your creditworthiness. Another special provision is for underage applicants who can share an add-on card with their authorised users, like parents. This gives the minor a card linked to their parents' credit account, which can have limited usage and be monitored by the parents.
If you want to know how to check eligibility for credit card then read along for more details. In India, eligibility depends on various factors. If you tick the following boxes, then you are eligible for a credit card; take a look at the list below to find out more-
1. An Indian resident
2. An NRI ( will be asked to fulfil more criteria in case of an NRI but doesn’t affect eligibility)
3. An individual of 21 years and no older than 65 years of age at the time of application
4. An employed person, a salaried individual or someone with a source of income like a business
5. An individual with a good credit score
6. A person with verified and authentic documents to support all their personal details
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If you are looking to acquire a credit card, it is a good starting point to know the types of available credit cards and to find out which one is the best choice for your usage. Let us take a look at the types of credit cards available in the market-
1. Standard Credit Cards- These are the most basic types of credit cards which can be used to make purchases and pay off bills. If you are looking for a no-fuss, simple credit card, this is the perfect fit.
2. Rewards-based credit card- As the name suggests, a reward-based credit card functions on the principle of reward. They offer cash-back opportunities, discounts, miles, etc for users. They can be utilised by people who are frequent travellers or shoppers.
3. Secured Credit Card- This type of credit card requires a fixed deposit as collateral for you to avail of a credit card service. They are issued to people who are considered to be financially high-risk and have a low CIBIL score. It is the perfect card type for individuals wishing to rebuild or increase their credit score.
4. Business Credit Cards- These are credit cards that are normally associated with a business account and are used by businesses and organisations to their employees for doing business-related transactions. They generally come with a tailored and specific credit limit and are perfect for business establishments.
5. Premium Credit Cards- These types of credit cards are the coveted kinds of cards that come with a higher credit limit, better perks, and more benefits. These are mostly issued to individuals with a high credit score.
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As digital banking becomes more prevalent, checking credit card eligibility has become easier and clearer. Most banks and credit card issuers now have online eligibility tools or pre-qualification checks. These help you understand your chances of getting approved before you apply.
Bank websites or apps - Many online banks allow you to input basic information such as income, employment type, and area of residence, to indicate if you meet a bank's initial criteria.
Credit bureaus - Some websites like CIBIL or Experian will work with banks to provide a custom approved offer for credit cards.
Third-party marketplace - There are websites like Paisabazaar or BankBazaar that aggregate multiple offers from different issuers. You simply fill in one form and then get evaluated for a number of credit cards.
Pre-approved offer via SMS or email - If you already have a bank account or loan, periodically the bank will send offers for credit cards based on your profile.
These tools are helpful because they are time savers prior to applying. They do not guarantee you will be approved, however.
One of the common worries potential applicants have is whether checking the eligibility for a credit card or pre-screened offer will have an adverse impact on their credit score. The answer is that this will depend on the difference between soft inquiries and hard inquiries.
Soft Inquiry: When you use your bank to check eligibility or your eligibility for pre-approved offers, you are asked to provide some information for the bank to perform a soft credit check. Soft credit checks have no impact on your credit score and are not displayed to a lender reviewing your credit report.
Hard Inquiry: When you decide to apply for a credit card, the bank completes an intensive credit check to determine your ability to make a repayment. This is called a hard inquiry that shows up on credit report. Many hard inquiries in a short time span can negatively impact your credit score, as many inquiries can lead lenders to suspect you are seeking credit.
Credit card eligibility comes with a stipulated range depending on your age, income, and employment status. For students and early professionals, the requirements can vary slightly:
Students: Most banks do not issue unsecured cards to students without income, although students may qualify for add-on cards (card connected to a parent/guardian’s account) or secure cards backed by fixed deposits. In addition, some banks may have specific, student-friendly cards issued, generally at a lower amount, with fewer KYC requirements.
Young Professionals: Newbies to the workforce may also qualify for entry-level cards. Banks are typically looking for some minimum monthly income (e.g., ₹15,000–₹25,000/month) or stable employment to support the issuance of entry-level credit cards. For applicants without a credit history, it is typically easier to qualify for a secured card or a card that links to their bank account.
Certain credit cards can be classified into two categories:
1: You're backed by a collateral, which is usually a fixed deposit. It is easier to obtain one, since the approval will not rely too much on income or credit history.
2: Secured credit cards are geared towards students or first-time users or individual who is looking to re-establish their credit scores.
3: The credit limit is subject to a percentage of the FD amount (75-90% is common) potentially as a safeguard.
1: They do not require a collateral. The approval will depend on income, job stability, and credit score.
2: You will earn more rewards, benefits, and elevated features compared to secured credit cards.
3: They may be appropriate for an individual with reliable repayment history and income pattern.
Understanding the many aspects and factors that affect credit card eligibility is crucial. For individuals who want to acquire a credit card, it is important to understand the basic requirements like credit score, age, income, etc., so that they may be able to present themselves favourably in the eyes of credit card issuers like banks, non -banking credit card issuers and organisations. It is also a good practice to keep oneself abreast of the financial landscape and understand the implications of the tiny details that may affect one's financial profile and credit history. That is why, through this article, we have tried to provide a simple yet comprehensive guide on understanding the basics of credit card eligibility in India and preparing oneself accordingly for applying for a credit card. With the information you now have, you will be able to better navigate the world of credit cards and make optimum use of it.
The minimum required age for an individual to avail of a credit card in India is 18 and above.
When it comes to qualifying for a credit card, each issuer has its own criteria; however, the most common markers are- a good CIBIL score, a stable proof of income, legal minimum age and proper personal details.
Most issuers have their own method of calculating the credit limit; however, the rule of thumb is to provide 2-3 times the amount of your basic salary, so in this case, your credit limit might be set somewhere between 80,000 to 1.2 lakhs.
Yes, it is possible for you to acquire a credit card with a CIBIL score of 500.
Yes, a CIBIL score is generally considered for a credit card application. A lower credit score may make it hard for you to acquire a credit score, as this reflects poorly on your creditworthiness.
You can determine pre-qualification by going to your local bank's website, credit bureau portals, or financial marketplaces. All you need to do is fill in information, including things like age, income, and occupation. If you already bank with a particular institution, you may even see SMS or email communication from them regarding pre-approved cards and unsecured loan offers.
No. Checking eligibility online is a soft inquiry and does not impact your CIBIL score. Usually, when you complete an application, a formal hard inquiry is performed, which impacts your credit score.
Yes, but responsibly. Every real application you submit creates a hard inquiry on your credit report. Applying to a lot of banks at the same time could negatively affect your credit score and raise red flags that could make you look financially unstable. A better plan would be to assess the pre-qualification tools first and apply to only one or two cards that may be a good fit based on your profile.
Premium cards generally require a higher income level, typically ₹75,000 per month or higher, and the actual amount can vary by bank and type of card. The banks will often look at your credit score (often at least 750 for premium cards), the length of time at your job, and your repayment history. In secured premium cards, your fixed deposit will be used to determine your eligibility.
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