Credit cards play a vital role today. They provide the ability to go cashless without getting any funds deducted from your bank account. Along with credit facilities, most of the cards have offers and cashback on most of their transactions. Although not all credit cards might suit you, Banks offer a variety of credit cards based on a person’s need and will.
However, not everyone is eligible to own a credit card. There are certain criteria one has to fulfill in order to own a credit card. Following are some points to know before one can apply for a credit card:
Income:
Most banks issue credit cards to individuals with a stable income. People with unstable incomes have a rare chance of getting a credit card. For the proof, the bank might ask you for your salary slips in case of salary employees or for an ITR in case of self-employed individuals. Different credit cards have different income criteria, while some can also be issued to individuals without any income, like students, but will also have certain terms and conditions.
Age:
While most cards in India ask for a minimum age of 18 years, some of the cards have a minimum age of 21 years. The maximum age limit varies within a range of 60 to 65 years.
The age might also vary based on an individual’s profession. For instance, a job person would have a maximum eligibility age of 60 years, while Self-employed people have a maximum age limit of 65 years.
Credit history:
Good credit history makes a lot of difference when getting any credit facility. Banks often check your Credit Score before issuing you any kind of credit. Thus, maintaining a good credit score is necessary not only to get credit cards but to also avail certain loans and finance facilities.
Nationality:
This might be an issue when applying for a credit card. Most of the credit cards in India are made available to people who are a resident of India. There are certain credit cards that are made for foreign residents who are to stay for a longer period of time. These cards have criteria different from regular cards and are expensive too. People generally use Forex Cards instead of credit cards in this case.
Security:
Banks that issue credit cards to people without any stable source of income ask for a security deposit in the bank. These deposits are generally in the form of a Fixed Deposit. This acts as collateral when getting a credit card issued.
Bottom line:
Most of the credit cards in India have these criteria. Always keep in mind all these points before applying for a credit card. Such criteria keeps on changing, therefore, always contact the bank for which you wish to apply for a credit card. Also, use your credit wisely and effectively to avoid any debt traps. Using credit facilities without control might affect your credit score.
Additional Reading: Tips for Managing Your First Credit Card
