I’m new to credit cards and planning to apply for one, so I’d like to understand the eligibility criteria. Can someone please explain what factors determine credit card eligibility?
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Yes, although eligibility of different credit cards are different but some things that you should remember are-
- Credit Score:
A credit score is decided based on your credit history, payment history, and payment defaults, if any. Credit score above 750 is generally considered good thus increasing your chances of getting credit score. - Age:
Most banks require applicants to be at least 18 years old. Some cards may have a higher minimum age, such as 21, especially for salaried applicants. - Income:
A stable income is important as it shows your ability to repay dues. Each card has a different minimum income requirement, which can vary depending on whether you’re salaried or self-employed. - Employment Type:
Both salaried and self-employed individuals can apply for credit cards, but certain premium cards may have specific requirements related to job profile or business stability. - Existing Debt and Repayment History:
Banks also assess your current loans or credit card dues to ensure you aren’t over leveraged .. A good repayment history boosts your chances of approval.
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