Credit cards are slowly becoming one of the most popular payment tools in India since they allow individuals to carry out cashless digital transactions and reap many benefits. As per a report, the total number of credit card users in India stood at around 47 million in 2019.
Eligible candidates can avail of these credit cards based on their spending habits and financial needs. However, before applying, they should keep in mind that several factors can influence their eligibility for a credit card. Understanding these factors will enable them to get their applications approved quickly. Some of them are mentioned below.
- Credit score –
It is one of the most critical factors that can affect your eligibility for credit cards. Since credit cards are a type of unsecured loan, lending institutions check your credit score to ensure that you can repay responsibly.
It is a numerical representation of your credit history that enables lenders to ascertain whether you will be able to pay your credit card bill in time. Hence, applicants should try to maintain a credit score of 750 or more to have a favorable impression on their lenders.
- Income –
Besides the CIBIL score, income is one of the critical factors that influence your eligibility for credit card. You must have a steady source of income to apply for a card. It is because your income affects your ability to repay the bill.
Consequently, lending institutions also give more preference to applicants with a higher income as it increases their repayment capacity. A high income also makes them eligible for a greater credit limit.
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However, the minimum income required varies based on your city of residence. Lenders also check for borrower’s FOIR or fixed obligation to income ratio. It refers to your total number of current liabilities such as debts, rents, etc. that you are required to repay with your current income. Hence, a low FOIR suggests that you have a high repayment capacity.
- Age –
Applicants’ age also influences their eligibility for a credit card. The age criteria can vary with each lending institution. Nonetheless, an individual applying for a credit card should be within the age of 25-65 years as a standard norm.
Lending institutions examine an applicant’s credit history to assess their creditworthiness before approving. Who are in advanced stages of their career may have a more extended credit history. Consequently, they stand a chance for a quick approval.
Taking care of these factors improves your chances of approval, thus bringing a range of advantages of credit card at your disposal. Also, you must fulfill the document requirement.
List of documents
Apart from understanding the factors that influence eligibility for credit cards, one should also know about the documents for the card. Keep the following documents handy to ensure a hassle-free application process –
- KYC documents for proof of identity and address.
- Proof of income and employment.
- Passport size photograph
The application process for a credit card is very straightforward. It can be completed both offline or online, with the latter simplifying the entire process. You can apply for a credit card online in 3 easy steps. To apply offline, visit your lending institution’s nearest branch with the original documents.
When applying, you can opt for credit cards like Bajaj Finserv RBL Bank SuperCard which provides the benefits of several cards in one. However, make sure to check the eligibility criteria before applying for one.
There are several advantages of a credit card. For instance, it increases the purchasing power of an individual. In addition to that, one can earn reward points on every purchase, which can be redeemed to avail cash backs, discounts. You can also use a credit card to improve your credit score. You must ensure to apply with the right eligibility to gain easy access to these benefits.
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