Credit cards are an amazing tool when it comes to managing your personal finances. Having a credit card has multiple benefits, such as access to exclusive offers and discounts that, in turn, increase your savings, reward points on most purchases and cashback. Mindful use of a credit card also helps a person in building a good credit history that brings them further benefits. Because having a credit card is so advantageous, almost everyone wants to get it for themselves. However, not everyone can apply for a credit card. To do so, you must meet certain eligibility criteria set by banks and other credit card providers. A key factor among them is your age. In this article, we will tell you about the minimum age limit set for getting a credit card in India, what makes you eligible, and how young adults can responsibly begin their journey into financial independence. We will also inform you of factors other than your age that will affect your eligibility.

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Minimum Age for Credit Cards in India

If we talk in terms of legal requirements, then the Reserve Bank of India (RBI) has set the minimum age for credit cards in India as 18 years. However, while being 18 or above makes you eligible to get a credit card in India, there are still other factors at play that you must be aware of. Many credit card providers attach extra conditions to the approval process of individuals aged between 18 and 21 years. The obvious reason is that people falling between this age bracket are either students with no source of income or people who have just entered jobs and have limited incomes. Since a Credit Card comes with a lot of financial responsibility, banks do not easily grant a credit card to those whose age is between 18 and 21 years old.

If you fall within this age bracket and are planning on getting a credit card, here is some useful information that you must be aware of before beginning your application process:

1. Income Requirement: If you are a young adult (18-21 years old) who wishes to apply for a credit card, it would be beneficial for you to have a regular income. This is because banks would be reluctant to provide credit to someone who might not be able to pay back their dues on time. Having a stable income would reduce the risk for them, and they would be more willing to trust you with a credit card.

2. Get Credit Card Without Income: If you do not have a source of income that would help you get your credit card application approved then you can request your parents or a guardian to act as a co-signer. A co-signer agrees to be responsible for your credit card repayment in case you fail to do so. Since parents and guardians usually have a much more stable source of income, once again, the banks will be assured of getting their payment and will approve your loan application more easily.

3. Secured Credit Cards: You do not have a stable source of income, and neither an elder who would agree to co-sign your application. Do not worry. You can still apply for a credit card. What you need to do is look for a secured credit card option. A fixed deposit backs secured credit cards as collateral, and that becomes your credit limit. This creates security for the credit card provider and helps you build a credit history without the risk of overspending.

4. Student Credit Cards: Another option for you to get a credit card is applying for a student credit card. Many banks have special credit cards for students enrolled in various educational institutions that help them kick-start their financial journeys. These cards come with many benefits. A wonderful example is the IDFC FirstWOW! Credit Card for students. To apply for this credit card, you must be over 18 years of age, but the best part is that you require no income proof or credit history at all! It comes with many other wonderful benefits such as low interest rates, no forex conversion fee, 4X reward points on spends and ATM cash withdrawal limit of 100% of the FD value.

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Factors Other Than Age That Affect Eligibility for Credit Cards

While age is a huge factor in deciding your eligibility for applying for a credit card, it isn't the only one. Many other factors affect a person's eligibility for approval of credit card applications, and you must also be aware of them. Let us go through them one by one:

1. Employment Status: While a credit card is not exclusively available for salaried individuals, they tend to find it easier to get their applications approved than those who are self-employed. This is because salaried individuals have a steady flow of income that assures credit card providers of timely payment of their dues. However, do not be discouraged if you are a self-employed person. You can still get a credit card by showing lenders a record of good and consistent income and maintaining a healthy credit history.

2. Good Credit Score: This brings us to another crucial factor most credit card providers consider while approving your application. A person's credit score reflects their entire credit record. This means it tells lenders if the individual is a financially responsible person who will repay the money on time. The higher your credit score is the better your chances of approval are.

3. Existing Debts: Having already existing debts while applying for a credit card affects your chance of approval very poorly. Therefore, always try to maintain a healthy debt-to-income ratio to improve your chances for approval of a credit card application.

4. Credit Card Usage in the Past: Naturally, lenders will take a look at your previous use of credit cards to see if you should be given one. If you have a record of timely payments and low credit utilisation, your credit card application will be easily approved.

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Can Minors Below the Age of 18 Get a Credit Card?

The simple answer to this question is no. People below the age of 18 cannot legally own a credit card in India. However, they can be registered as an add-on user with an adult's credit card. It is imperative for children to learn how to manage finances responsibly. Therefore, banks and credit card providers often have the option for parents to add their teenage children as authorised users on their credit cards.

For instance the Bajaj Finserv RBL Bank Credit Card provides this wonderful choice to their users. Today, a lot of parents are choosing to add their kids as add-on users because of the following reasons:

1. Monitor Spending: Since teenagers are just stepping into the finance world, keeping track of their spending habits is essential. Add-on cards allow parents to monitor their kids' spending habits and guide them wherever they feel the need to. This ensures that children are prevented from making any wrong financial decisions.

2. Making Children Financially Responsible: Add-on cards are great ways of making children financially responsible. When they begin to manage finances at an earlier age, they become well-equipped adults ready to handle finances responsibly.

3. Start Building Credit History: We all know how important having a good credit history is since it brings in a pool of different advantages. With add-on cards, children can start building a credit history early on, which will eventually help them as they grow up and are ready to make independent financial decisions.

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Conclusion

The legally required minimum age to own a credit card in India is 18. However, this legal minimum age does not guarantee the approval of your credit card application. For all young adults who fall within the age group of 18 to 21 years, there are a bit more added challenges when it comes to getting a credit card. Banks usually require you to have a steady flow of income in case you want to apply for a credit card. However, there are other options, such as student credit cards, getting a co-signer, or applying for a secured credit card in case you haven't yet managed a regular flow of income. Even children below the age of 18 can have access to credit cards. They can be added by their parents as add-on users on their cards and learn to handle finances responsibly at an early age.

By following the guidelines provided, you can responsibly begin your credit journey, build a solid credit score, and unlock the financial benefits that come with good credit. Whether it's applying for a student credit card, a secured credit card, or an add-on card, it's important to use credit responsibly from a young age to enjoy long-term financial stability.

Frequently Asked Questions (FAQs)

1. Can I get a credit card if I am 18 years old?

Yes, legally, you can apply for a credit card in India if you are 18 years old or above. However, eligibility does not guarantee approval of your application. Most banks and credit card providers have certain criteria set in place before issuing a credit card to people as young as 18. You have to meet the set criteria to get a credit card.

2. Can teenagers get credit cards in India?

No, in India the minimum age for credit is 18 years. However, even though teenagers cannot own a credit card, they can use their parent's credit cards as add-on users. This way,, they can have a firsthand experience of handling credit, learn financial responsibility, and stay safe and secure under their parents' guidance.

3. Can students get credit cards in India?

Yes, many Indian banks today offer student credit cards that come with advantages like low interest rates, no forex conversion fee, 4X reward points on spends and ATM cash withdrawal limit of 100% of the FD value. You must show valid proof of enrollment in an educational institution to be eligible for such credit cards. The best part is that student credit cards are issued without any minimum income or credit score requirements.

4. Do I need a credit score to get my first credit card?

While most banks have a minimum credit score requirement for considering your application, many credit cards are launched, especially for students and young adults who are either not employed yet or just newly employed. These credit cards are often issued without any minimum income requirements or a credit score. You only need to back it with a fixed deposit as collateral. That fixed deposit will act like your credit limit.

5. What are the benefits of an add-on credit card for my child?

An add-on or supplementary credit card for your children provides them with exposure to handling finances responsibly at an early age. They learn to spend mindfully. Another wonderful benefit of supplementary credit cards for children is that they can start building a credit score early in life. You can easily monitor their spending habits, which is why add-on cards are also safe and secure.

6. I am 21 years old but do not have a job. Can I get a credit card in India?

Most banks and credit card providers require a minimum income to issue you a credit card. Therefore, salaried individuals find it easier to get their credit card applications approved. However, do not lose hope. You can apply for a secured credit card that is backed by a fixed deposit amount as collateral.

7. Is there an age limit for supplementary cardholders?

There are different age limits for add-on card holders in different Indian banks. While some allow minors to be added, others require the child to be at least 18 years old.