Know the Eligibility criteria applicable for a Credit Card

Credit cards have become a widely used tool by many individuals to manage their finances. Whether it’s covering everyday expenses or indulging in occasional splurges credit cards offer flexibility and convenience of instant payments. However, obtaining one isn’t as simple as applying. Knowing the eligibility criteria beforehand can save you time and set you up for success.

Let us look at the basic requirements banks consider before issuing a credit card.

• Age: You must be at least 18 years old to apply. Some banks may have a minimum age requirement of 21 years. The upper age limit varies from 60-65 years of age.
• Income: The minimum income range generally falls between INR 1 lakh to INR 3 lakhs annually, although this can vary based on the card type. Premium credit cards often come with stricter income requirements.
• Employment Status: Whether you are self-employed or salaried, a stable source of income is a must for credit card eligibility. Banks also prefer applicants with stable job histories. Being in your current job for more than a year can improve your chances of getting approved.
• Credit Score: One of the most critical factors is your credit score attributed by CIBIL. A score between 750 and 900 is typically considered excellent and boosts your chances of approval.
• Credit Utilization Ratio: Banks assess how you manage your existing credit. A lower credit utilization ratio (the amount of credit used versus the credit limit) is seen as a positive indicator of financial responsibility.
• Existing Loans or Applications: Applying for too many loans or credit cards in a short period can hurt your eligibility. It’s advisable to leave a gap of at least six months between applications.

It is important to note that these basic criteria as may differ depending on the bank or type of credit card. It is always wise to verify specific details on the bank’s website.

To complete your credit card application, you will need to provide specific documents which typically include:

• Completed credit card application form
• Identity proof (Aadhaar Card, PAN Card, Passport, etc.)
• Address proof (Utility Bill, PAN Card, Aadhaar Card, Driving License, etc.)
• Passport-size photos
• Recent salary slips (usually last 3 months) or bank statements
• Form-16 (for salaried individuals)

For self-employed applicants, additional documents such as income proof and business proof will be necessary. Students can also apply for specific student credit cards by submitting their student ID and other basic documents.

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