What Is the General Eligibility for a Credit Card?

What Is the General Eligibility for a Credit Card?

Credit cards offer spending flexibility by helping you make purchases on credit and pay for them later. They come with various benefits such as rewards, cashback, and interest-free periods, all while helping you build a credit history crucial for securing future loans. But what makes one eligible for this financial instrument?

To obtain a credit card, you must meet specific eligibility criteria set by the issuers. These criteria ensure that the applicant has the financial stability and discipline to manage credit responsibly. Each factor, from your age and income to your credit score, determines whether you will be able to enjoy the benefits of a credit card.

General Eligibility for a Credit Card 

The eligibility criteria for a credit card vary among issuers but generally include:

  • Nationality: You need to be either an Indian resident or a Non-resident Indian (NRI).
  • Age: You must be at least 18 years old to apply. This rule applies even if you are an add-on cardholder.
  • Income: Banks often set minimum income requirements for credit card applicants and to verify that, you might need to submit proof of income. The income threshold varies with the credit card you wish to apply for.
  • Occupation: Both salaried employees and self-employed professionals can apply, provided they have a steady source of income. 

Factors Affecting Your Credit Card Eligibility

Besides the primary criteria, such as age, income, occupation, and nationality, there are additional factors that play an important role in determining your credit card eligibility.

  • Credit score: It is a common practice for issuers to perform a credit card eligibility check with a keen focus on your credit score. This score reflects your creditworthiness. A high credit score boosts your chances of approval as it indicates you have efficiently managed loans and credit card bills in the past.
  • Existing debt: High outstanding debt, especially relative to your income, may affect the approval of your credit card application. A balanced or low debt-to-income ratio works in your favour, signalling you manage your finances responsibly.
  • Number of credit inquiries: Every time you apply for a credit card or a loan, it triggers an inquiry. Too many inquiries in a short period may suggest to the issuers that you may be financially stressed. However, a few inquiries show prudent credit management.
  • Stability of employment: Banks value stability. Frequent job changes with shorter stints can be interpreted as signs of financial instability. Long periods of employment, usually more than a year, suggest a stable income stream and a lower risk profile.

To enjoy simple criteria and swift approvals, you can consider the IndusInd Bank Legend Credit Card. Just click on the apply credit card online option, input your basic details, sign the application digitally, and complete video KYC (V-KYC). Enjoy 100% digital, paperless processes and exclusive privileges on travel, dining, and shopping. 

Role of documents in determining your credit card eligibility 

Proper documentation is important in the credit card application process as it allows banks to verify the accuracy of the information you provide. Lacking proper documents can impact your eligibility and may lead to a delay or rejection of your application. Although the exact requirements can differ, the following documents are commonly requested:

Document Type Acceptable Documents
Proof of identity Aadhaar card, passport, driver’s licence, voter ID card
Proof of income Recent pay slips, income tax returns, form 16, bank statements, and proof of business (if self-employed)
Proof of residence Aadhaar card, utility bills, lease agreements

The bottom line

Multiple factors, from age and income to employment and credit score, can significantly impact your eligibility for a credit card. After all, a credit card is a financial responsibility. While it offers the convenience of cashless transactions and the potential for rewards, it also requires disciplined use.

To optimise your chances of approval, always conduct a credit card eligibility check before submitting your application. With the right approach, obtaining a credit card becomes a valuable tool to achieve financial flexibility and growth.