Every bank offers its customers a wide range of credit products. With competitive rates on loans and credit cards, every lender wants to woo consumers in the credit market. Since credit cards are at the heart of our lives, banks have developed a variety of credit cards to suit different needs. As a result, people can choose the right one that suits their credit needs.
There is no doubt that we find it quite simple and convenient to use credit cards for a wide variety of purchases. In addition, a credit card will allow the user to get discounts and reward points from time to time. However, once you apply for a credit card, your application might become rejected if you don’t satisfy the requirements. Therefore, it is essential to have proper credit card eligibility to ensure that the bank approves your application.
In this article, the various factors that can affect your credit card eligibility are listed.
How is it possible to apply for a credit card?
After becoming certain regarding your credit card eligibility, it will be a good idea to apply for it. Below, we have mentioned some simple steps needed to make the application.
• Visit the financial institution from where you want to get the credit card.
• The application form must then be filled out in detail.
• Make sure that all the essential documents have been attached.
• Finally, send all documents together with the form.
After becoming approved for the credit card, the bank will send you a notification. You will also be notified in case it gets rejected.
Factors affecting the eligibility of credit cards
Individuals who apply for credit card must satisfy the subsequent eligibility criteria.
1. Age
Your age is a crucial factor in determining your eligibility. You must be within the age limit set by the financial institution. The minimum age must be 18 to be eligible. However, several organizations or financial institutions that issue credit cards want the applicant to be 21 years old. The maximum age limit is 60 years in some instances.
2. Income
When applying for a credit card, your income is also significant: most credit card companies have a particular income requirement. The bank requires proof that you can repay the amount credited in the future. The setting of the annual income limit differs from bank to bank. It is about Rs. 3 lakh every year in India.
3. Employment
Your employment status is another factor that will play an essential role when you apply for a credit card. If you have been working with your present company for more than 12 months, it will be favourable in your case. In this way, you will appear credible, and your chances of getting a credit card will improve greatly.
4. Credit score
It will be possible for you to get approved for the credit card if your credit score is high. However, the same cannot be said if you have a poor credit score, which signifies a weak financial history. In a nutshell, one should have a credit score between 700 and 900 to become approved in the long run.
5. Location
Your physical address will likewise be considered while you apply for a credit card. As a matter of fact, some credit cards are only available in some particular locations.
6. Application for multiple credit cards
At some banks they might frown upon you if you have more than one card. As you apply, banks monitor your previous credit card applications. Consequently, it will be a bad idea to make applications over and over again. Make sure to wait for some time, even though the bank might reject your application once.
Conclusion
All the information mentioned above will help you to understand your eligibility for a credit card. First, invest some time in selecting the card according to your requirements. Also, make it a point to maintain a proper credit score since it will play an important role for you to become approved. Then, compare different types of credit cards on the market which are available in your locality. Following this, go for one which will provide you with more benefits as compared to the others. Finally, to apply for a credit card, make sure to fulfil all the specifications issued by the bank.
