Credit Card Eligibility Conditions

While one of the major advantages of having a credit card is that it allows you to improve your credit score; having a credit card may also turn out to be one of the biggest disadvantages for your credit score. However, this may only happen in cases when you apply for a credit card continuously even after multiple rejections.

The only way to keep away from the rejection of your credit card application is that you submit your credit card application properly without any errors. There are certain credit card eligibility conditions laid down by the banks/credit card issuing companies that must be met in order to get your credit card application approved.

We have curated a list of some of the major credit card eligibility requirements; both personal and financial so that you can keep a check on it, before you begin with the credit card application process.

Personal Factors Affecting Credit Card Eligibility

The following personal factors of the credit card applicant have a direct impact on the credit card approval. Hence, it is absolutely essential to consider these factors as major credit card eligibility conditions for your credit card application.

  • Age

The most basic condition for credit card eligibility is the applicant’s age. You must be at least 18 years of age in order to be eligible for a credit card. However, some banks/credit card issuing companies also require the applicant to be at least 21 years old. Apart from the minimum required age, the maximum age to which you can apply for a credit card is 60 years.

Read More: Which is the Best Credit Card for You? Make the Choice
  • Salary

Since you borrow money from a bank when you transact using your credit card, the bank needs to have a proof that you would be able to repay the credited amount to the bank. To ensure this, the bank/credit card issuing company looks at your salary/monthly income. Even though the minimum annual income requirement for credit card eligibility varies from bank to bank, in India, it is generally around Rs. 3 lakh per annum.

  • Nationality

Generally, there are not many limitations around the residence or nationality of the credit card applicant. However, a few credit cards are only made available to the Indian citizens.

  • Employment

Employment is another major important factor in the process of credit card application. As your application gets verified by the bank, your current and previous employment status is closely looked upon. You get brownie points in your credit card application for being in one job for a year or more.

Point to be considered: The personal factors responsible for the approval of a credit card application vary from one bank to another. Hence, it is absolutely essential to keep a close eye on the credit card eligibility conditions of the specific card that you are applying for.

You may also use tools like credit card eligibility checker online to make absolutely sure that you are eligible for the credit card that you are applying for.

Read More: Documents Required for Credit Card Application | The Complete Guide

Financial Factors Affecting Credit Card Eligibility

Apart from the personal individual factors, there are a few financial aspects to the approval of your credit card application. These factors, are however, equally important and must be a part of your check-list for credit card application.

  • Credit Score

Your credit score works in direct proportion to the chances of the approval of your credit card application. The higher your credit score is, the more chances you have of getting your application approved. Similarly, a bad credit score would imply an unhealthy financial history, and hence, would lower the chances of your application being approved. A credit score of 750 to 900 is considered fairly good for a credit card application.

  • Credit Utilization Ratio

Another fairly important factor of credit card eligibility is the CUR or Credit Utilization Ratio. It refers to the ratio between the credit card bill and credit limit. Both these factors determining the credit utilization ratio are inversely proportional to each other. This means that if you spend more, your CUR would be low. This, eventually works out negatively for your credit card application as it indicates that the application is credit-hungry.

  • Multiple Credit Card Application

Having multiple credit card applications is one of the major turn-offs for your credit card application. As you apply for a credit card, the banks would keep a check on your previous credit card applications and if you have multiple rejected applications, your chances of getting this one approved would automatically drop down. Hence, do not apply for a credit card again and again. Even if you get your application rejected once, wait for some time before you try again.

Read More: Guide to Different Types of Credit Card - A Comparison
  • Existing Loans

Having several existing loans shows that the applicant is quite frequently looking out for debts, and is not able to pay them easily. This, eventually leads to the bank being suspicious about your credit repayment capabilities. Hence, having too many existing loans is not good for your credit card application is an important factor considered by the banks as your credit card eligibility criteria.

Documents Required for Credit Card Application

Not being able to submit the documents properly is the most common reason for the rejection of credit card applications. Hence, it is advisable to check the list of documents required for your credit card application and submit all the necessary documents, well in time.

We have curated a check-list for you to do the same-

  • ID Proof (any one of these)
    • PAN Card
    • Aadhaar Card
    • Passport
    • Voter’s ID Card
    • Driving License
    • Ration Card
  • Address Proof (any one of these)
    • Aadhaar Card
    • Passport
    • Voter’s ID Card
    • Driving License
    • Ration Card
    • Rent Agreement
    • Property Documents
    • Utility Bills (Water/Electricity/Telephone Bills, etc.)
  • Income Proof (any one of these)
    • Salary Slips (last 3 months)
    • Bank statement (last 3 months)
    • Income Tax Return

It must be noted that the above-mentioned documents must be furnished with the duly-filled credit card application form.

How to Apply for a Credit Card?

Once you are sure of your credit card eligibility, whether through the above-mentioned conditions or using the credit card eligibility checker available online, you are ready to move to the next step- credit card application.

Here are a few simple steps to be followed to apply for a credit card-

  • Visit the bank whose credit card you want to buy (either online or offline)
  • Fill out the application form properly
  • Attach all the required documents
  • Submit the application form and the documents
  • Keep a check on the status of your application

You will be notified via email or post as and when your application gets approved or rejected within 10 working days of submitting the application.

FAQs
What are the credit card eligibility requirements?
The following are major credit card eligibility conditions- The applicant must be at least 18 years of age The applicant must be an Indian citizen (valid only in case of a few banks) The applicant must have a regular income Applicant’s credit score must be around 750 to 900 There should be any major unpaid debts in the name of the applicant
How will I know if I am eligible for a credit card?
You can check your credit card eligibility using credit card eligibility checker online.
What documents are required for credit card eligibility?
The following documents must be submitted while applying for credit card- ID Proof (PAN Card, Aadhar card, Passport, Voter’s ID Card, Driving License, Ration Card) Address Proof (Aadhaar Card, Passport, Voter’s ID Card, Driving License, Ration Card, Rent Agreement, Property Documents, Utility Bills (Water/Electricity/Telephone Bills, etc.) Income Proof (Salary Slips (for last 3 months), Bank statement (for last 3 months), Income Tax Return)
Can I check credit card eligibility online?
You can check credit card eligibility online using various tools like credit card eligibility checker. These tools are available on the official website of various banks and/financial institutions.
What is a credit card eligibility checker?
A credit card eligibility checker is an online that calculates your eligibility for the credit card using your personal information and states whether or not you are eligible for the particular credit card.
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