Everything You Need to Know Before Applying for a Credit Card

Before focusing on credit card details like perks and offers, take a minute to understand its application process. This generally involves:

Meeting all the criteria set by the card issuer
filing the form correctly and honestly
Uploading needed documents

The eligibility factors for obtaining a credit card vary, so checking specific terms is a must. In general, a stable income and a good credit score can position you for fast approval on your application.

4 Main Eligibility Terms For Credit Cards in India

Banks or credit card companies consider common factors like age, profession, nationality, and other aspects before approving your request. All these factors help issuers ensure that you are genuine and have the means to repay your bills on time.

With this insight in mind, check out more details on the factors that affect your eligibility.

Criteria	Explanation
Age	You are required to be within the age bracket of 18 to 65 years. Some banks have a minimum age requirement of 21 years for primary cardholders.
Profession	To get a credit card, you can be a salaried employee or self-employed. Normally, issuers do not offer cards to freelancers or non-earning individuals unless you are applying for a secured card.
Income	Your income should be regular and stable, meeting the monthly or annual requirements set by financial companies. This may vary depending on the type of credit card you choose.
Nationality	In some cases, you need to be an Indian resident and in others, Non-Resident Indians (NRIs) can also apply for a credit card in India. This depends on the card and the issuer.

Other Factors Affecting Your Eligibility

Apart from the 4 factors that issuers publish, there are some aspects of your profile that they assess. Take a look at them to give yourself the best chance to get approval.

Credit Enquiries, Utilisation and Score

When applying for a credit card, issuers check your CIBIL score. With a good score (above 700 or 720), you increase your chances of approval. If you are wondering why, this is because the score indicates that you have prior experience with credit and have repaid your debts on time in the past.

It also means that you do not rely on credit to live your life. This aspect is called the utilisation ratio of credit. If you max out your credit card every month, this ratio will be high. By using around 30% of your credit limit, you can manage this ratio efficiently.

Finally, if you have applied for a number of credit cards and loans in the recent past, your score may be low. So, only apply for credit if you really need it and with an issuer whose criteria you meet. Rejection of your application also lowers your score.

Location: Some credit card issuers restrict the availability of their cards to certain locations. Before applying, check to see if they issue cards in your city.

Employment Stability: Your current employment situation is another deciding factor. Staying with an organisation for more than a year significantly builds credibility. Switching between jobs when applying for a credit card can reduce your chances of approval. Try to maintain stable employment to prove yourself to be a reliable candidate.

Existing Debt: Before issuing credit cards, financial companies evaluate your financial obligations. If you have many loans and do not have enough income to pay credit card bills on time, you may not be able to get a credit card. Even if you do, your credit limit may be low.

Documents Needed to Prove Your Eligibility

Depending on your employment status and profession, you will need to provide certain documents to get a credit card.

Personal information:

Address Proof	Electricity bill, Ration card, Landline/mobile bill, Driving Licence, Passport
Identity Proof	Aadhaar card, PAN card, Voter ID, Driving Licence, Passport
Age Proof	Passport, Voter ID, Birth certificate

Professional information:

For Self-employed professionals	Income Tax Returns Audited business statementsProof of business continuityGST RegistrationBank statements
For Salaried individuals	Latest payslipsForm 16IT ReturnsForm 60

Education-related Information:

For Students

College ID cardCertificate from college/universityAdmission latter

Application Process

Once you understand the documents you need to keep handy, check if you meet the card’s eligibility terms. Once you are sure you apply for a credit card online or offline. Follow these modes:

When You Apply Online

You can apply for a credit card conveniently by going the online route. You can choose to apply:

On the issuer’s website
On the issuer’s mobile app
Via a financial marketplace
Via WhatsApp banking services

When You Apply Offline

You can also apply for a credit card in person by:

Visiting the issuer’s branch
Using the issuer’s ATM

Credit Card Details To Check

All that’s left now is to choose the right credit card for yourself. This is the perfect time to focus on all the credit card details, be it the:

Deals and discounts it offers
Reward points you can earn
Redemption process
Interest rate and other charges like forex fees, late fees, and more
Billing cycle
Bill payment modes
Availability of a mobile app to link your card
Security of the card
Perks it offers

After you have checked all this, you can apply for the card confidently. If you’re looking for instant approval and a premium card that gives you benefits across categories, go for the One Credit Card. This lifetime-free card has no hidden charges.

What’s more, its full-stack mobile app helps you set spending limits and stick to your budget. It also allows you to check offers near you via GPS, so you never miss out on discounts! Earn 5X reward points and enjoy a bevy of offers with this stylish metal credit card. Apply now to get started!