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ToggleA credit card can significantly improve your credit profile and can also be an excellent savings tool. In India, where credit usage is not yet widespread, many people still view credit cards as a luxury rather than a practical financial tool.
Despite this, the credit card industry in India has grown at a compound annual growth rate (CAGR) of 20% over the past five years, with the number of credit cards exceeding 78 million by July 2022.
If you are considering applying for a credit card in India, you might be unsure about the eligibility requirements. Many people hesitate to apply because they fear they might not qualify. However, understanding the eligibility criteria can clarify this for you. In this blog, we’ll explore how credit card eligibility works, so let’s get started.
When you’re looking to get a credit card from a bank, it’s important to know the eligibility criteria. These are the conditions set by banks to determine if you qualify for a credit card. Typically, they include your age, income, and credit score.
Understanding these factors helps you figure out which credit cards you might qualify for, saving you time and protecting your credit score from being negatively impacted by unsuccessful applications.
While the eligibility criteria are generally similar across major banks, there may be slight differences based on each bank’s policies. Factors that affect eligibility include whether you’re salaried or self-employed, and your annual income and other credit obligations.
Let’s take a closer look at the factors that affect your credit card eligibility in India:
To apply for a Credit Card, you typically need to be between 18 and 60 years old. This age range ensures that applicants are legally adults and not approaching retirement. Some card issuers may have slightly different age requirements.
Your income is an important factor in determining credit card eligibility. Banks require proof of a stable income to ensure you can pay off your credit card bills. Different types of credit cards have varyingDebt minimum income requirements, with premium cards generally needing a higher income.
Your job status significantly affects your credit card application. Those with a salaried position often have an easier time securing a credit card because they can provide evidence of a regular income. Self-employed individuals and entrepreneurs can also qualify, but they need to demonstrate a higher stable income.
Your credit score, ideally above 750, reflects your history of managing credit responsibly. This score is derived from your credit history, including previous loans, credit cards, and your repayment behaviour. A high credit score indicates that you are a low-risk borrower.
YBoth resident Indians and Non-Resident Indians (NRIs) can apply for credit cards. NRIs may need to provide additional documentation to verify their employment and living arrangements abroad.
If you already have an account with the bank, it might be easier to obtain a credit card. Your existing relationship with the bank can sometimes help offset lower credit scores or income levels.
If you have other loans or significant debts, it can impact your credit card eligibility. Lenders evaluate your Debt-to-Income Ratio to ensure you can handle additional credit without becoming financially overextended.
These documents are commonly required for most credit card applicants:
Proof of Identity
Proof of Address
Income Proof
If you are self-employed, you might need to submit additional documents to prove your income and business operations:
Proof of Business Ownership
Income Tax Returns
Bank Statements
NRIs must submit these documents to get a credit card in India:
Indian
Passport
Overseas Address Proof
Indian Address Proof
Income
Proof
Visa/OCI Card
This shows your past financial behaviour, especially how consistently you’ve made credit payments. A positive history of timely payments improves your chances of approval, as it demonstrates that you are a reliable borrower.
This ratio compares your monthly debt payments to your income. A lower ratio is better, as it suggests you manage your debt well and are less likely to have trouble with new credit.
Having several credit cards can be both beneficial and risky. While it might show your experience with managing credit, too many cards could raise concerns about your financial stability and affect your eligibility negatively.
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The minimum salary needed to qualify for a credit card depends on the specific card you’re applying for. Generally, cards with higher credit limits and more premium benefits require a higher income.
Yes, your mobile number must be linked to your Aadhaar for identity verification purposes when applying for a credit card.
Establishing or improving your credit score involves responsible financial behaviour. This includes consistently paying your credit card bills and utility bills on time. Even if you have a poor credit history, making timely payments can help you rebuild your credit over time.
Priyanka Rao is a content strategist for Jupiter.Money, and specializes in writing on topics related to finance, banking, budgeting, salary & wages, and other financial matters. She has a passion for creating engaging content that resonates with audiences across various digital platforms. In her free time, Priyanka enjoys traveling and reading, which allows her to gain new perspectives and inspiration for her work. With a keen eye for detail and a creative mindset, Priyanka is committed to creating content that connects well with her readers, enhancing their digital experiences.
View all postsPriyanka Sharma is the Head of Credit Cards (Sr. Director Business & Product - Credit Cards) at Jupiter Money, where she leads the growth and development of the company’s credit card portfolio. She is responsible for driving strategic initiatives and enhancing customer experiences through innovative credit products. Priyanka’s leadership is shaping Jupiter’s approach to simplifying personal finance for its customers. Prior to her role at Jupiter Money, Priyanka was an Engagement Manager at McKinsey & Company, where she provided strategic advice to clients across various sectors. Her expertise in business strategy, growth, and operations was built on her strong analytical skills and client-focused problem-solving abilities. Earlier in her career, she worked at ZS, a global business consulting firm, where she contributed to various projects, gaining significant experience in data-driven business decisions. Priyanka holds a Post Graduate Programme in Management with a focus on Finance, Strategy, and Leadership from the Indian School of Business (ISB), where she graduated with distinction, earning a place on the ISB Dean’s List. This prestigious academic achievement underscores her deep understanding of financial strategy and leadership, which she continues to leverage in her fintech leadership role.
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