MyLoanCare is a FREE of cost service for borrowers Apply Online

MyLoanCare - Baat Aapke Interest Ki

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Menu

Credit Card Eligibility Criteria – Apr 2021

Credit Card Eligibility

Last Updated 18th Apr 2021

Key factors that determine credit card eligibility are :

Age Minimum‭ ‬18‭ ‬years,‭ ‬Maximum‭ ‬60‭ ‬years
Net Monthly Income Minimum net monthly income is Rs.‭ ‬15,000‭
Credit Score 650‭ ‬or above
Employment Status Available for both salaried and self-employed
ITR Last year’s ITR for self-employed

Check Eligibility Criteria for Credit Card

If you meet the following criteria,‭ ‬then you will be eligible for a credit card from more than one bank.

Age : The minimum age required to hold a‭ ‬credit card is‭ ‬18‭ ‬years,‭ ‬while the maximum age at which a credit card can be availed is‭ ‬60‭ ‬years.

Credit Score : A minimum credit score of‭ ‬650‭ ‬is required to avail of a credit card.‭ the bank in which the individual already has an account.

Employment Status : To avail of a credit card,‭ ‬a steady flow of income is required.‭ ‬Both salaried and self-employed can avail of a card as long as you can provide proof of steady income flow.

Net Monthly Income : Minimum Rs.‭ ‬15,000‭ ‬as net monthly income is required to avail of a credit card.

ITR : Self-employed individuals are required to submit last year’s ITR as well,‭ ‬along with identity proof when applying for a credit card.

Factors Affecting Credit Card Eligibility

Credit Score : Credit score is an indication of a person’s creditworthiness.‭ ‬Lower the score‭; ‬lesser is the creditworthiness.‭ ‬Besides,‭ ‬the more benefits a card has,‭ the more is the required credit score.‭ ‬Some banks do have a specified card for those who do not have a credit score. However, if you have a certain credit history, then the minimum credit score of 650 is required.

Income : Although a minimum income of Rs.‭ ‬15,000‭ ‬is required to be eligible for the card,‭ ‬but it will be a card with very few to none benefits.‭ ‬Higher income will attract a better card,‭ ‬which has a lot more benefits and a robust reward system.‭

Organization :‭ Each bank has a list of organizations with it,‭ ‬which are considered by the bank as trusted companies.‭ ‬So,‭ ‬if you work among any of those organizations,‭ ‬then the eligibility criteria for you are relaxed as compared to those who do not.‭

Previous Credit card Record :‭ In case you already have a credit card and want to apply for another one,‭ ‬then the record of your previous card can be used to consider your eligibility.‭ ‬Thus,‭ ‬if you have maintained a good repayment record in your previous card,‭ ‬then it will serve as a positive sign for the bank when considering your eligibility.

Existing relationship with bank : If you already have a savings or salary account with a bank,‭ ‬then based on an existing relationship,‭ ‬you can easily be eligible for a credit card issued by that bank.‭ ‬As compared to new customer banks have relaxed norms for existing ones.‭ ‬ICICI Bank has low-income criteria for customers who have a salary or savings account with the bank.

Credit Utilization Limit‭

When you avail of a credit card,‭ ‬you are given a credit limit.‭ ‬This limit specifies the maximum amount of outstanding credit you can have on the card at any given point of time.‭ ‬The credit utilization limit is decided based on various factors:

  • Your income plays a crucial role in determining the credit limit.‭ ‬Higher the income,‭ ‬higher will be the limit.
  • Your credit score is another factor that determines how much trust a bank can place on you. ‬A better credit score will help you get a higher credit limit.
  • Existing relationships with the bank can also help you get a better credit limit.
  • If you already have a card,‭ ‬then the credit utilisation of that card also helps in determining your limit.

FAQs

Am I eligible for a credit card‭?

Anyone with a net monthly income of Rs.‭ ‬15,000‭ ‬and above are eligible for a card.‭ ‬In case you do not have a credit score or your credit score is low,‭ ‬then you can opt for a secured credit card.

How to improve credit card eligibility‭?

Firstly,‭ ‬identify the parameters you are not meeting to be eligible for a credit card.‭ ‬Once the parameters are identified,‭ ‬you can easily assess as per your present situation as to what steps can be taken to make improvements in the identified area.

What is eligibility for a credit card‭?

Eligibility for a credit card means whether you are meeting some specified measurable parameters which are necessary to avail of a card.

Are all credit cards eligible for international transactions‭?

No,‭ ‬all credit cards are not eligible for international transactions.

What is a credit card balance transfer‭?

When you transfer the outstanding balance of a credit card into another bank’s card by closing off the previous one,‭ ‬this process is called credit card balance transfer.‭ ‬SBI offers balance transfer facility on its credit cards.

How bad credit score affects credit card eligibility‭?

A bad credit score gives birth to distrust in the credit behavior of the applicant.‭ ‬Credit cards with good benefits and rewards have a high bar for credit score as banks do not want to lend credit to someone who has a high chance of default.‭


Credit Card News - Apr 2021
  • 2021-04-07 : AU Small Finance Bank launched Platinum Family Banking Program
    With an aim to increase serve its customers, AU Small Finance Bank has launched a Platinum Family Banking Program. The scheme will offer facilities of family banking as well as offerings such as preferential pricing, priority processing, onboarding offers, and a complimentary lifetime free debit card. Further, it will also provide a dedicated relationship officer to address the financial needs of the entire family.
  • 2021-04-05 : Yes Bank Jan-March deposits up 54% to 162, 947
    Yes Bank reported that the bank’s loan and advances which include home, personal, LAP, gold, two-wheeler, car and doctor loans along with business and mudra loans increased by 0.8% in year-on-year (YoY) terms to Rs. 172,850 crores. In addition to this, the bank deposit which includes fixed and recurring deposits grew 54.7% to Rs. 162,947 crores as compared to ₹105,364 crores on a yearly basis. The CASA(current and savings account) was up 51.8% to Rs. 42,587 crores against Rs. 28,063 crores YoY.
  • 2021-03-31 : New rules for recurring payments from April 1
    RBI stated that recurring transactions using debit cards, credit cards or UPI will need additional factor authentication from 1 April. Under the new norms, banks will be required to inform customers in advance about recurring payment due and the transaction would be carried the following a nod from the customer.
  • 2021-03-21 : SBI recorded digital transactions as high as 67%
    State Bank of India has recorded a considerable increase in its digital transactions. The bank reported 67% digital transaction in the post Covid period from earlier 60% in the pre Covid times. The increase is attributed to hike in e-commerce due to covid induced lockdown which restricted the movement.
  • 2021-03-17 : RBI to extend cheque truncation system across all bank branches
    RBI has decided to extend the cheque truncation system. CTS at present is operational at major clearinghouses of the country, across all bank branches. Further, the central bank clarified that banks will have to ensure that all their branches participate in image-based CTS by 30 September 2021.
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
Loader
Please wait while your information is being processed...