A credit card is a financial instrument that can be useful if you use it wisely. It can provide you with reward points, cashbacks, offers, and more.
Among the many benefits of credit cards is the grace period which gives you a large window to pay your bill. Repaying the bill within this period will enable you to avoid any interest or extra charges on the total amount due. If you manage your usage of a credit card responsibly, you don’t have to worry about falling into debt.
Furthermore, you earn rewards with every transaction which you can redeem for coupons, cashbacks, and discounts.
However, you need to ensure that you fulfill a few terms and conditions before applying for a credit card and earning those rewards. Some of the credit card eligibility requirements for getting such a card include:
- You need to have a regular source of income
Having a regular source of income is mandatory for availing credit cards. Both salaried and self-employed individuals can apply for a card.
Some financial institutions grant this financial product to individuals with a salary as low as Rs. 10,000. However, such cards may not come with benefits and features available for individuals with high income. Plus, the credit limit may also be lower compared to other cards.
- You should meet the age criteria
The age limit for credit card eligibility varies with financial institutions. However, the minimum age accepted by the majority is 18 years. Some companies require the applicant to be at least 21 years or above.
- You need to have a good credit history
Credit history is an essential criterion for approval of your card application from financial organisations.
Your credit history contains all records of credits that you have availed previously. It is a report having details like the number of credits availed, the total credit amount, their tenure, repayments, etc.
Some financial institutions require the applicant to have a spotless credit report in case the card has a high value.
- You should have minimal debt
Ensure that you are not in massive debt when filling the credit card application. Keep the credit limit utilisation under 30% if you have multiple credit cards.
Furthermore, financial institutions may also check your debt to income ratio before sanctioning one.
- You must have all the necessary documents
Advances require documents for availing and credit cards are no different. Financial institutions require identity proof (Aadhaar, PAN, Voter ID, etc.), address proof (utility bill), bank account statements, and IT returns and proof of business for self-employed individuals.
Ensure you have taken care of all the steps mentioned above before filling a credit card application.
You can look for the best credit cards online. It combines 4 cards in one; and some features available with this credit card include a joining bonus of reward points, complimentary lounge access in airports, milestone bonuses, interest-free emergency loan of up to 90 days, interest-free ATM withdrawals of up to 50 days, and more. You can also get free movie tickets and fuel surcharge waivers.
You can also avail pre-approved offers that make the process quick and less complicated. These offers are also available on credit cards, personal loans, business loans, home loans, EMI product financing, and other financial products and services. You can check out your pre-approved offer by providing few of your essential details.