Credit Card Eligibility Criteria – Jul 2020

Last Updated 09th Jul 2020

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

Credit Card Eligibility

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 on Credit Card Eligibility

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 - Jul 2020
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