What Are The Eligibility Criteria For Applying A Credit Card

Each bank provides a wide range of credit options to its clients. Each lender aims to win over customers in the credit industry by offering loans and credit cards with attractive interest rates. Banks have created a range of credit cards for various uses as credit cards have taken center stage in our lives. Also, you must fulfill certain eligibility criteria to be accepted for your credit card application. The information might change based on the bank or card. If you don’t fulfill the bank’s conditions then your application can be turned down. If this occurs, your credit score can suffer.

Credit Cards for Different Purposes

There are lots of requirements for everyone, though they may differ depending on our lifestyles. Since they are well aware of their customer's spending patterns, banks provide several credit cards under the following categories:

●       Shopping Card- Exclusive benefits, promotions, and price cuts for in-store and online purchases.

●       Cashback Card- Provides cashback points that may be used to reduce the cost of every transaction.

●       Rewards Card- Earn points to redeem for a variety of gifts of your choice.

●       Travel Card- Access to airport lounges and savings in hotel and ticket reservations.

●       Lifetime Free Card- Free credit cards with no annual fees.

●       Business Card- To manage your business effectively with credit in advance.

●       Lifestyle Card- Discounts, deals, and benefits on essential services.

●       Entertainment Card-Special deals and savings on recreational activities.

Necessary Information for Credit Card applications.

The required information you must submit with your application may vary from bank to bank. However, the following is a list of some of the fundamental papers you must submit:

  1. Filled-out application.
  2. Passport size photographs
  3. Evidence of Identity (copy of PAN, Passport, Aadhaar, etc.)
  4. Evidence of residency (utility bills, Driving License, PAN, Aadhaar, etc.)
  5. Most recent salary slip.
  6. Bank statements.

 You must provide the following if you are self-employed:

  1. Statements of accounts
  2. Proof of business
  3. Income proof

Eligibility Criteria Of a Credit Card

Age

18 years of age or older.

Income

Minimum monthly or yearly revenue required by the bank in the form of a fixed deposit.

Employment

Salaried or Self-Employed.

Interest-Free Period

Up to 55 days.

ATM Cash Withdrawal Charges

2.0% to 3.5% of the withdrawn amount.

Factors Affecting Your Eligibility For Credit Cards

You must be aware of the online criteria that determine your credit card eligibility if you want to ensure that your credit card application is accepted. These elements are listed briefly below:

Current Debt:

Your credit utilization ratio will also be taken into account by your credit card issuer. Your present credit card balance cannot be higher than a specific amount, since this might complicate the application process.

Employment:

Your credibility will increase, and your chances of obtaining a credit card will be much increased if you have been employed by your present company or organization for more than a year.

Credit Score:

If you have a strong credit score, you have a better chance of having your credit card application accepted. If you have a poor credit score your online credit card eligibility application may be denied or you may be given a card with a smaller credit limit.

Conclusion

It’s crucial to check the eligibility requirements before applying for a credit card to avoid having your application denied, which might harm your credit score. Although being denied, a credit card doesn't damage your credit score, every time you apply for a credit card, a hard inquiry is made into your credit profile, which can impact your credit. After being rejected, there is a good likelihood that you will apply for another card, yet, it is not advised to do so. Therefore, it would be much better if you checked all the conditions and just applied for it only if you thought there was a chance of being accepted. On the majority of bank websites, you can locate the qualifying requirements, or you may ask for them in person by going to the branch.

 Read More: The Best Way To Check And Update Credit Card Billing Address

 

 

 

  

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