Owing to the severe competition among financial institutions in India, credit card eligibility criteria have become considerably less stringent. However, it is imperative for applicants to satisfy these criteria, even when these are minimum. Even though non-compliance will only lead to rejection, the underlying effect of the same is lowering the credit score.
Hence, when applying, applicants need to make sure they are qualified for the credit card they are opting for.
Credit card eligibility: Important points to consider
Some important factors to consider regarding the credit card eligibility are –
- Age – To apply for a credit card, you are required to be within the age group of 25 to 65 years.
- Nationality – Several financial institutions allow citizens, residents and non-residents of India to apply for credit cards. In contrast, some card issuing companies only allow citizens of our country to be eligible for credit cards.
- Income – Your monthly income is an essential factor in the credit card eligibility criteria. The minimum threshold of an applicant’s monthly salary varies across financial institutions. In most cases, you are required to be employed in a reputed company or firm or possess substantial interest income from your savings to meet the demands of the eligibility terms and conditions.
Factors that affect your eligibility score
Other than the points mentioned above, it is advised to take note of a few other factors that affect your credit card eligibility substantially, which are –
- Outstanding Dues
If you have existing debts or unpaid EMIs, financial institutions may reject your credit card application. So, it is advised to clear all your outstanding dues before applying as it is one of the critical reasons why you may have been declined a credit card.
- Duration of Employment
If you have been working in a reputed organization for at least 3 years, card issuing companies will consider your employment as stable, thereby making you more eligible. This means that you have a secured income and are highly likely not to miss your monthly credit card bill payments.
- Credit Score
The credit score is another important factor that affects your credit card eligibility significantly. If you possess a credit score of 750 or above, it indicates that you express responsible creditworthy behaviour in dealing with your finances. So, a high credit score will help you to avail a credit card with no hassle.
With a good credit score, you can apply for credit cards like the Bajaj Finserv RBL Bank SuperCard. This credit card offers interest-free emergency personal loans for up to 90 days and ATM cash withdrawal without any interest for up to 50 days.
This NBFC also brings forth pre-approved offers, which make availing credits quick by making the process straightforward. Such offers are also applicable to numerous other financial products such as personal loans, business loans, etc. Check your pre-approved offer by providing your name and phone number.
- Credit History
In addition to the credit score, the credit history of an individual also plays a vital role. Any record that has a negative impact on debt payment can lead to application rejection.
Many times, these entries can also be caused due to inaccuracies and discrepancies. In such cases, it is recommended that individuals have these rectified from the respective financial intuition or CIBIL.
Your location is also an essential factor in determining your credit card eligibility. Several financial institutions issue credit cards to applicants who reside within their serviceable area. The above-discussed factors will help you to improve your credit card eligibility significantly. Upon approval, it is advised to learn how to use a credit card wisely to stay clear of debt and payment of penalty charges.