How To Apply For A Credit Card?

Now that we have learned to select the right credit card as per our requirements, we need to apply for it.

It is very easy to apply for a credit card. You simply need to follow these steps: 

We have already discussed features and benefits. Now let us see the other aspects.

Eligibility criteria for obtaining a credit card: 

Credit card is essentially an unsecured loan extended by the lender. Hence, it contains a risk on the side of the lender. Therefore, banks/NBFCs will establish your repayment power while approving a credit card. Things such as nature of employment, gross annual salary, Cibil score will be of primary importance.

Every bank/NBFC will have its own eligibility criteria for issuing a credit card. The most common factors affecting eligibility are:

Income: As mentioned earlier, income plays a very important role while applying for a credit card. The applicant must have a regular source of income so that he/she is able to repay the credit card bill.

Age of the applicant: Age plays a pivotal role as well since every individual has a steady source of income only for a certain period of years.

Credit history: Your credit history is the proof of your creditworthiness. It is easier to obtain a credit card with a good credit history. Here comes the role of Cibil score. 

Cibil score is a 3-digit score ranging between 300 to 900 which is calculated based on a person’s credit repayment history. It takes into account all loans and credit cards taken by the person and has a history of all repayments made. This data is shared between all lenders in India. The higher the score, the better is the chance to obtain a credit card.

Additional eligibility criteria: Some banks/NBFCs may have additional eligibility criteria or they may waive off some criteria for their own customers. For example, Axis bank offers a credit card to anyone having a fixed deposit of ₹ 20,000 or above with them. 

Now let us take a look at the eligibility criteria of some lenders as of December 2020. Of course, the actual eligibility criteria may vary during the time of applying for a credit card.

Documents required to apply for a credit card

A credit card application requires to be accompanied by simple documents which are:

• Identity proof: Aadhar card, PAN card, Passport, Voter’s ID card, Driving License, etc. 
• Address proof: Aadhar card, Passport, Voter’s ID card, Driving License, rent/lease agreement, utility bills etc.
• Income proof: Salary slip (last 3 months), bank statement (last 3 months), ITR, etc. 

However, the lender may request for additional documents if they need the same.