Credit Card Eligibility Conditions

byMehak BaglaLast Updated: May 1, 2024
Credit Card Eligibility

Before applying for a credit card, it’s important to understand the eligibility conditions set by banks and credit card issuing companies. These conditions determine whether your application will be approved or rejected. By familiarizing yourself with the basic eligibility requirements, both personal and financial, you can increase your chances of successfully obtaining a credit card. In this article, we will outline some of the key eligibility conditions to help you navigate the credit card application process with confidence.

To provide you with a clearer understanding of credit card eligibility conditions, we have categorized the requirements into two sections: personal factors and financial factors. 

Personal Factors Affecting Credit Card Eligibility

  • 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.

  • Salary

When you use your credit card to borrow money from a bank or credit card company, they want to make sure that you can pay back what you owe. To do this, they look at how much money you earn each month, also known as your salary or monthly income. The minimum annual income required to be eligible for a credit card can vary from bank to bank, but in India, it is generally around Rs. 3 lakhs per year. This income requirement gives the banks an idea of your financial stability and ability to repay the money you borrow with your credit card.

  • 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 be sure that you are eligible for the credit card that you are applying for.

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 checklist 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 the 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.

  • 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-

  • 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)

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 on Paytm?

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. 

The application process for Paytm + HDFC co-branded credit card is quite simple. All you need to do is download or open the Paytm App and follow these steps- 

  • On the main screen, scroll down to the section of ‘Loans & Credit Cards’
  • Click on ‘Credit Cards’
  • Click on ‘Apply Now’
  • Check your PAN information and accept the terms and conditions 
  • Next, click on ‘Confirm’ to apply for a credit card
  • You will be notified about the status of your credit card application

Another advantage? The entire credit card experience is digital, from the application process and card issuance to online spending tracking, and can be completed in less than 5 minutes on the Paytm app!

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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