Basic Requirements to Apply for a Credit Card
Many prospective credit card users fail to avail a card because they do not meet the requirements for the same. Most of these applicants are unaware of the credit card eligibility criteria before application, leading to rejections.
Therefore, if you want to avail the benefits of such a card, it is essential for you to understand the factors you need to fulfil to avail it from the issuer.
Common credit card eligibility criteria
Even though the exact requirements differ from one credit card company to another, the below-mentioned factors are common for almost all of them.
- Age- The applicant must be aged at least 18 years at the time of credit card application. Similarly, most companies reject claims from applicants aged over 65 years.
- Employment- Applicants must be either self-employed or salaried to avail a credit card. People who are unemployed at present should first secure a source of income and then apply. Or they can opt for a secured credit card instead.
- Income- The best credit cards are offered to those who have a high monthly income. Most NBFCs offer cards to people with a minimum monthly income of Rs. 25,000. If your current income is lower than required, you can always boost your earnings and then apply for the card.
- CIBIL score- The CIBIL score determines your creditworthiness. Financing companies consider your credit rating before accepting or rejecting the credit card application. A score below 750 limits your chances of availing loans and cards. If you already own a credit card, you can use it to improve your credit rating.
If you already have outstanding debts, availing a credit card becomes difficult. Ensure you clear all your dues at the time of application to avoid the chances of rejection.
Another mistake you must avoid to avail the best credit cards are to avoid submitting an application for multiple cards at once. Doing so indicates a credit hungry nature, which can disqualify you from acquiring the card of your choice.
Documents required to avail a credit card
Now that you know the credit card eligibility factors, here is a look at the list of documents you must furnish during card application.
- Identity proof (Any one) – Aadhaar Card, PAN Card, Driving Licence, Passport, ration card, etc.
- Address proof (Any one) – Aadhaar Card, Driving License, Passport, Voter ID, etc.
- Proof of income- Salary slips, bank statement and income tax returns
- PAN card
Additional documents may be necessary based on the policies and norms of the credit card company in question.
Can you avail a credit card without a credit score?
Your CIBIL score is essential to avail most credit cards. However, people with no prior credit history can also opt for such cards. However, instead of an unsecured credit card, such people can avail a secured credit card after pledging collateral. The credit limit in such a case is determined based on the value of the collateral asset.
You can build your credit score with secured cards. Pay the bills on time and never default on the same. You will notice a steady improvement in your credit score over time.
Once your CIBIL crosses the 750 threshold, you can opt for the best-unsecured credit cards, in the market, provided you satisfy all other eligibility factors.
Bajaj Finserv provides pre-approved offers, simplifying and quickening the credit card application process. These offers are available on credit cards, personal loans, business loans, home loans and a variety of other products. You can check your pre-approved offers today by providing your name and phone number.
Ensure you understand the features, benefits and billing cycle for a credit card before you start considering your own eligibility. Not all cards are suitable for everyone. Opt for a card which best suits your financial requirements.