A credit card allows you to borrow money to pay for products or services with the promise of repaying the card issuer at a later point, usually with interest. Credit cards are convenient financial tools that make spending simple and beneficial. You can manage your short-term financing obligations and meet urgent cash needs with the help of associated services like Interest free periods, for example, make repayment simpler.

You can apply for credit card in a variety of ways. You can apply online, visit a bank, or you can even apply over phone.As a consequence of the COVID-19 epidemic, the credit card application process has been digitised, making it easier and faster.

What is Credit Card Eligibility?

You must fulfill certain eligibility conditions in order for your credit card application to be accepted. Different criteria may apply to each bank or card. Your application may be denied if you do not fulfil the bank’s criteria. As a result, your credit score may suffer.

To acquire a credit card in India, you must meet certain criteria.

  • The applicant must be at least 18 years old.
  • A minimum income salary of Rs.1 lac. to Rs.3 lac. is required.
  • The applicant should be employed or self-employed.

Factors that affect Credit Card Eligibility Criteria

Age

You must be at least 18 years old to register. Some banks, on the other hand, require a minimum age of 21 years. The maximum age limit varies as well, although it usually ranges from 50 to 60 years old.

Annual Income

Your yearly income decides  if you qualify for a certain card. In India, a minimum annual salary of Rs.3 lac. per annum is essential to apply for a credit card. However, it’s advisable to double-check this criterion with your bank because it completely depends on which card provider you select.

Nationality

Citizens, residents, and non-residents all have the opportunity to apply. There are, however, a few cards available solely to Indian citizens.

Steps to Apply for a Credit Card

Step 1 – Know your Credit Score

When you check your credit score before applying for a credit card online, you’ll be completely informed about the kind of interest rates you may get from your offers, as well as the perks you might be eligible for. Your Credit Score will be between 300 and 850, with anything above 670 is considered “good”, and anything above 800 is considered “excellent”.

Step 2 – Research and compare offers

When you research before you apply for a credit card online keep a close eye on annual interest charges. Keep an eye out for ongoing rewards as well as any sign-up incentives especially for new cardholders.

Step 3 – Apply online

Once you’ve done your research and decided on a credit card, visit the bank’s website to apply for credit card and search for a “Apply Now” option on that bank’s website, which will immediately lead you to an application. Questions may vary a bit, but you should expect to submit a mix of personal and financial information, such as your name, address, and Social Security number, as well as your annual salary, monthly expenditures, and the amount in your present bank account (s).

Step 4 – Submit your application

It’s time to sit back and wait for a response after you’ve submitted your application and applied for a credit card online. Some issuers are more responsive than others, but you should receive a response within 10 to 14 business days.

Step 5 – Receive your card

If your application is approved, your credit card should arrive in 10 to 14 business days, however in certain cases, delivery can be accelerated due to exceptional circumstances. Thereafter, you’ll need to activate your card before you can start using it to make purchases.

What to Do If Your Application is Turned Down?

A credit card company may reject your application for a number of reasons. If you have a low credit score due to a history of late payments, or if you don’t have any credit since you’re just getting started with it. You should have a complete understanding of how does credit card work in India.If you’ve been rejected a credit card, you can contact the credit card company directly and request a review. You’d have to verify that you’re a suitable candidate for a credit card based on your ability to manage credit responsibly and make your monthly payments on time.

If requesting a reconsideration remains unsuccessful, there are alternative options for obtaining a credit card. You may ask someone to apply for a credit card with you as a co-borrower or add you as an authorised user to one of their cards. Both can help you develop credit, giving you purchasing power. However, there is an important difference to be aware of between the two. When you apply for a joint credit card, you agree to share liability for any debt incurred on the card. Whereas in the second option, you can make purchases with the card as an authorised user, but you are not liable for the debt incurred.