Kern Pioneer

The number of credit card users in India has reached almost 47 million as of 2019. By 2020-2025 this number is anticipated to grow by at least 25%. These figures indeed indicate that India is gradually becoming familiar with cashless transactions.

However, it doesn’t mean that getting one is a cakewalk. Credit cards utilise a line of credit, which customers use to pay for goods and services. Hence the risk of default is always there on the issuers’ front. For this reason, individuals have to meet all the essential eligibility requirements to apply for a credit card. 

What eligibility criteria should you have to apply for credit cards online?

Credit cards have certainly revolutionised the financial world with its features and benefits. While the digital push is compelling for people to choose plastic money over conventional cash, credit cards are gaining popularity across the globe. Different banks and NBFCs issue these cards in India only after assessing your repayment capacity along with other factors. 

Following are some of the criteria that you need to fulfil to apply for a credit card in India. 

• Income- Income is a crucial factor that decides whether an applicant is eligible for a credit card or not. Financial institutions will ask the applicant to attest for the same as well. For instance, for a salaried person, the card issuer will ask for a recent salary slip. On the other hand, for self-employed individuals, they will assess their business income of a particular period.
• Age- Applicants must cross a minimum age threshold to apply for a credit card. Most cards served to the people only between 25 to 65 years. Furthermore, people less than 18 years need to apply with an adult co-applicant or have to opt for an add-on credit card.
• Credit Score- Credit score, ranging from 300 to 900, is one of the most commonly used parameters to gauge one’s creditworthiness. Credit card issuers will review applicant’s credit score and repayment history thoroughly to ascertain the risk of defaulting. Due to this, experts recommend maintaining a credit score of 750 or above at all times. Once an individual learns how to use a credit card to improve credit score, it will be easier to apply for credit card or loans in future.
• Credit utilisation ratio- This ratio also plays a vital role in getting a credit card. Lower the credit utilisation ratio, higher will be chances to be approved for a credit card, as it indicates higher repayment capability. A ratio of 30% or less is preferable in this regard.
• Location- Location is also a significant determinant for one’s credit card eligibility. Several credit card providers offer different credit cards for different locations, and the benefits also vary with cities. For example, TIER-I cities can have some specific benefits which may not be offered to customers from TIER-II cities and vice-versa.

Meeting all the eligibility criteria is essential to avail a feature rich credit card from reputed financial institutions. Not only they offer various features and benefits, but they also provide pre-approved offers when you apply for a credit card to make the entire application process hassle-free. Such offers are also available for other financial products like education loan, personal loan, etc. You can check your pre-approved offers by entering your name and contact number. 

However, before applying for a credit card online, you should also have a clear idea of how to repay your credit card debt on time. It will help you stay ahead of your debts and help save a substantial amount over the long run.