The convenience of using a credit card for shopping and travelling comes from the ability to transact without cash. Credit cards are not available to everyone. Obtaining a new credit card is contingent upon meeting several requirements.
What are the requirements for a credit card in India? The lending institutions’ requirements must be met to apply for or own a credit card. An income proof must be submitted to apply for the service. A credit card can only be obtained by those who can show proof of their income, whether it’s a salary or business earnings.
The Following Five Factors are The Essential Eligibility Criteria
You need to meet certain eligibility requirements for your new credit card application to be approved. These requirements differ from bank to bank. Applicants who do not meet the requirements set by the bank may have their applications rejected.
Residential status
Residents of India are eligible to apply. Some lenders also offer credit cards for NRIs.
Age
This factor can differ from lender to lender. All applicant types should have a minimum age of 18 years and a maximum age of 70 years. Non-residents, citizens, and permanent residents may apply. In some cases, however, only Indians can purchase these cards.
Income
Employees and self-employed applicants are encouraged to apply. The applicant must have a regular income source. Wages play an important role in determining credit card eligibility. The type of credit card you qualify for depends on your income. A credit card application in India generally requires a salary of around Rs.3 lakh per year. Even so, it’s best to verify this requirement with your bank because it varies depending on the card issuer.
Bank Account
Applicants should be able to open a savings account or a salary account. Maintaining a minimum salary balance and avoiding overdrafts is important when maintaining a bank account.
Credit History
If the applicant has an excellent CIBIL (Credit Information Bureau [India] Limited) score, they should be considered.
Existing Debt
The credit utilisation ratio is also taken into account by your card issuer. In some cases, exceeding the due limit can affect your application’s approval.
Employment
You may also be eligible if you have a job. The chances of getting a credit card increase significantly if you stay at the same job for more than a year.
Location
Your location is also taken into consideration when a bank assesses your application. You cannot apply for certain cards if you don’t live in a certain city.
Other than that, you also have to have valid documents such as KYC documents because based on these, lenders will assess if you have a poor track record when it comes to paying back debts on time and closing out accounts. Your application may get rejected since this reflects on your ability to repay your credit card debts.
List of The Requirement for a New Credit Card in India
- Documents required for KYC
- Passport-sized photographs
- Evidence of income
- An excellent credit history
For a credit card, no specific requirements are needed; all you need is some important documents, and the lender will check your credit score since the lender takes the maximum amount of risk when you receive a credit card. Your dues are paid on time if you have a decent income.
You will be able to get a suitable credit card if your credit rating is good and you have all the documents. You will also be able to obtain bank cards from lenders. Banks have different minimum salary requirements for credit cards, and the minimum age to get one varies.
Credit managers may give you a credit card with a possible credit limit if you have a good credit score (CIBIL Score). You also mustn’t be a defaulter on any loans or earlier credit cards, and you can also provide a good income source and a good track record on your bank statement.
