Want To Apply For A Credit Card? Important Credit Card Eligibility Terms to Know

Data from the RBI revealed that India had more than 86 million active credit cards as of April 2023. What’s more, the total spending on credit cards created a record in May this year, amounting to ₹1.4 Lakh Crores.

These numbers show the rising popularity of credit cards, which not only offer money-saving incentives, but security and flexibility as well. For all these reasons, you too may be looking to apply for a credit card or upgrade to a new one.

However, make sure you understand credit card eligibility terms before you apply. These parameters are set by banks so that only customers who seem reliable and showcase timely repayment ability are approved for credit cards.

Read on to know more about them so you can expect fast approval and get a card of your choice when you apply for a credit card.

Common Credit Card Eligibility Terms To Be Aware Of

In order to qualify for a credit card, make sure you do the following based on the specific criteria set by the issuer:

1. Meet the Minimum Age Requirements

Check the age limit for the credit card you are planning to apply for. This differs from bank to bank. Some issuers require you to be at least 18 years old, while some set the age limit to 21 years.

Also, remember that the upper age limit is also set by banks. This parameter is usually set at an upper cap of 60 years. All you need to do is research the specific credit card eligibility terms related to age. This helps you avoid unnecessary rejection.

2. Keep up a Good Credit Score

Your credit score serves as an indicator of your financial health and creditworthiness. As such, it is vital for credit card approval. A score higher than the minimum required by the bank increases your chances of getting fast approval and a high credit limit.

Normally, issuers require a credit score of more than 700, with some specifying 720 or 750 as the minimum CIBIL score. This is an important credit card eligibility term, so ensure you check your score before you apply. If your score isn’t there yet, take steps to improve it.

3. Qualify Based on Income, Employment or Security Criteria

Banks require you to meet the minimum earning criteria as your income impacts your ability to repay on time. The type of employment you have affects your earnings, too. Thus, job stability, stable income and sustained business growth are important to getting approval on your credit card application.

The credit limit you get is also determined by your income level. In some cases, banks may also require a certain amount of work experience or business vintage. Follow these credit card eligibility parameters to enjoy speedy approval of your application.

Lastly, check if a secured credit card works better for you if you are young and have just joined the workforce. These are linked to investments like fixed deposits. Check the minimum amount of FD investment needed by a bank to qualify if you are going this route.

4. Meet the Nationality and Residency Terms

Some banks consider your place of residence as an eligibility criterion, as they may offer specific cards only in particular cities or regions. Another aspect is whether you are a resident of India or a Non-Resident Indian (NRI). 

Tips to Improve Your Credit Card Eligibility

If you are not eligible as per the terms set by the bank, do not apply for a credit card. Instead, work on improving your eligibility and follow the other tips mentioned below to increase your chances of approval.

1. Pay Off Existing Debt

Multiple unpaid debts either indicate financial strain or reduce the amount of income you have to pay off new credit. Thus, this lowers your credit score and decreases your credit card eligibility.

To improve your chances, try to repay existing obligations if possible. You can also apply for a credit card a little later when you have repaid some of your loans.

2. Display Responsible Repayment Behaviour

Making payments of EMIs or other credit card bills on time is also key to strengthening your credit history. So, set reminders or auto-debits to ensure you do not miss out on your due dates. This will improve your credit score and make you seem more reliable to credit card issuers.

3. Apply With Banks You Have a Prior Relationship with

Consider your existing relationships with banks for better chances of approval on your credit card application. Choosing a bank where you have an FD, savings or current account can help you get easy approval on your credit card application. This is because the bank is already familiar with your financial profile.

Documents that Prove Your Credit Card Eligibility

There are two main sets of documents that prove you qualify for a credit card, so take a look below.

1. Proof to Validate Your Personal Information

Submitting accurate documents is crucial to avoid rejection. Here's a checklist to assist you. But remember that you may only need to submit 2 or 3 of these.

Proof of Identity

PAN Card

Aadhaar 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.)

2. Income-Related Documents

For income proof, make sure to include one or more of the documents mentioned below. Remember that you may need to supplement these if you are a self-employed professional.

Income Proof

- Salary slips (last 3 months)

- Bank statements (last 3 months)

- Income tax return

Now that you know the common credit card eligibility terms, apply once you know that you qualify to keep from wasting time. While getting a credit card is the first step, using it carefully and repaying it responsibly is key to your financial health. So, apply for a credit card once you have set a budget and know you can use it to empower and upgrade your life.

Disclaimer: No Deccan Chronicle journalist was involved in creating this content. The group also takes no responsibility for this content.