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Credit Card Eligibility Criteria – Nov 2020

Credit Card Eligibility

Last Updated 01st Nov 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

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 - Nov 2020
  • 2020-10-29 : IndusInd Bank becomes the first bank to go live on RBI Account Aggregator Framework
    IndusInd Bank becomes the first bank to go live as a Financial Information Provider under the new Account Aggregator Framework of the RBI. User can now avail various facilities like viewing statements of their accounts, track deposits, plan investments avail credit cards, etc. on a single window.
  • 2020-10-28 : SBI, HDFC Bank and BOB working on NEU
    The State Bank of India, Bank of Baroda and HDFC Bank are teaming up to form a New Umbrella Entity for retail payments. The NUE will be a profit-making entity and will be setting up and operating new payment systems for ATM networks, point-of-sale devices, Aadhaar-based payments and remittances.
  • 2020-10-28 : Customer spending getting back to pre-COVID levels for AU Small Finance Bank
    AU Small Finance Bank reported an increase of 23% in per day debit card spends. Overall, point-of-sale and e-commerce transactions witnessed a surge of 16% since the launch of the festive offers. The festive offer of the AU Small Finance Bank includes credit offerings such as 100% waiver on valuation charges for gold loan and attractive interest rates on car and home loans.
  • 2020-10-23 : Axis Bank announced festive benefits
    Axis Bank announced Dil se Open Celebrations that will offer deals and discounts on more than 1 lakh branded products on purchase through Axis Bank credit and debit cards. Further, the bank is also offering some key benefits to customers who are in need of a loan, offering home loans starting at 6.90% as well as car loans at 7.99% and up to 100% road funding.
  • 2020-10-23 : Jana Small Finance Bank plans 600 branches by March next year
    Jana Small Finance Bank will convert its asset centres into bank branches to have over 600 branches. The Small Finance Bank serves underbanked customers through various products, including zero balance savings accounts, fixed deposits with attractive interest rates, collateral-free loans and affordable home loan schemes.
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