Thursday, April 25, 2024

Are You Eligible For Credit Card? Know the Correct Age Limit for Getting Your First Credit Card

Credit cards are financial instruments which enable you to carry out cashless transactions within seconds any time anywhere. This way, it helps you buy your favourite products easily. While using credit cards, you are borrowing funds from a financial institution, which needs to be repaid within the pre-determined tenure. 

You can pay off your credit card payments either in full settlement or via EMIs. Now, if you are wondering whether your credit card age limit suits you or not, take a look at its eligibility criteria.  

Eligibility Criteria to Apply for a Credit Card

Each card issuer adheres to various credit card eligibility parameters for its applicants. In general, some common eligibility criteria for credit cards comprise age, credit score, monthly income, and so on. If you fail to meet these pre-set requirements of your financial institution, your credit card application may be rejected. 

Hence, in order to avoid this problem, go through these eligibility criteria thoroughly:

  • Age of Applicant

The foremost eligibility criterion you need to meet is age. Since maximum persons earn a stable income after a particular age, financial institutions prefer setting an age criterion in order to stay away from defaults. Therefore, many credit card issuers may not permit you to avail a credit card at a lower age. Usually, your minimum credit card age limit is 18 years. 

  • Income

Maximum credit card issuers pre-set a particular income requirement since you need to maintain a stable source of income in order to afford a credit card and repay its dues. Furthermore, your income influences the credit card limit as well. Generally, to opt for a credit card, you should earn a steady salary ranging between Rs. 1 Lakh and Rs. 3 Lakhs. 

  • Nationality

Before opting for this card, keep in mind that most credit card issuers in India provide credit cards to those individuals who have citizenship in this country or to Non-Resident Indians (NRIs).

  • Credit Score

Another eligibility criterion for a credit card is your credit score which ranges between 300 and 900. This score shows your credit history, payment defaults, and repayment history. Having a healthy credit score will show your creditworthiness to your credit card issuer and make them believe that you will repay the dues timely. Usually, to avail a credit card, you need to retain a healthy credit score of 700 or higher. 

  • Employment Status

Last but not the least, another factor affecting your credit eligibility is your current employment status. You need to be either a self-employed person or a salaried professional. Being associated with a reputable public or private company and staying in that job for more than a year will considerably increase your probability of getting approval on your credit card.

After you meet the credit card age limit alongside its eligibility criteria successfully, take a look at some of the important documents which you need to submit.

Documents Required While Applying for a Credit Card

Following is the list of the essential documents required to apply for a credit card:

  • Identity Proof (comprise PAN card, passport, Aadhaar card, voter ID card, driving licence, ration card)
  • Residential Proof (including Aadhaar card, driving license, property papers, electricity bill, utility bill)
  • Income Proof (comprise salary slips of previous three months, bank statements of last six months, Income Tax Returns, Form 16)

Once you meet the eligibility criteria and collect the necessary documents, you can proceed to apply for a credit card.

Steps to Apply for a Credit Card

You can apply for a credit card by following these easy steps as mentioned below:

Step 1: Navigate to the official website of your desired financial institution

Step 2: Go to the ‘Credit Cards’ section

Step 3: Fill out the application form with your personal details and contact number

Step 4: Search the credit card options available on the website and view their features.

Step 5: Choose the credit card option that suits you the best

Step 6:  Meet the eligibility criteria as set by your card issuer 

Step 7: Upload the necessary documents accordingly

Step 8: Click on the ‘Submit’ button 

Upon completion of all these steps successfully, your credit card application process will be completed. 

What are the Features and Advantages of Credit Cards?

Mentioned below are some noteworthy features and advantages of credit cards:

  • Credit cards help enhance your CIBIL score
  • It provides cashback benefits
  • It offers insurance coverage
  • Credit cards provide travel benefits
  • It offers reward points such as discounts, movie tickets, gift vouchers, etc.

What are the Types of Credit Cards Available?

Following are the types of credit cards available in the market:

  • Travel Credit Card 
  • Cashback Credit Card 
  • Reward Points Credit Card
  • Fuel Credit Card
  • Shopping Credit Card 
  • Lifestyle Credit Card 

Having a crystal-clear idea about the eligibility criteria and credit card age limit beforehand will help you avail a credit card with more convenience. Also, while opting for this card, visit multiple websites of financial institutions in order to avail the best credit card option. 


News Update