Credit cards are one of the most useful tools that can be used to make the best out of your savings. The best credit cards in India come with several benefits, rewards, discounts and cashbacks. However, banks do not approve credit cards easily. They judge on the basis of several factors whether to give the applicant credit card or not.
A person’s credit history is a clear indication of how he or she manages his or her credit-related actions. The lender prefers to issue the best credit cards in India to someone who has a strong credit history. To calculate your credit limit, most organisations look at your credit records and gross annual income. Your repayment history, the length of your credit history, and the amount of credit accounts on your report are all factors that issuers look at. Those with credit scores of 750 or higher have a better chance of getting a credit card.
Your profession will have a significant impact on whether or not your credit card application is approved. If you have a stable job in a stable organisation, you will get a credit card easily. Employees of lesser-known companies are not recommended because the financial failure of such organisations may have a negative impact on their employees’ repayment capabilities. Salaried workers have a better probability of getting a credit card than self-employed people because salaried individuals have a more consistent financial flow.
Even if you meet all other eligibility requirements, your credit card application will be denied if you do not reach the monthly income requirement. However, depending on the card type, this criterion may differ within the same card issuer. Monthly income criteria are greater for cards with higher perks.
The minimum age to avail a credit card is 18 years. Anyone under the age of 18 is eligible to apply for a /credit card. Add-on credit cardholders must be at least 18 years old.
Debt Utilisation Ratio
Your credit utilisation ratio will be taken into account by your card provider. Your application’s approval may be compromised if your dues exceed the allowed level. It’s critical to keep your debt-to-income ratio low. You can apply for credit card if you have a low debt utilisation ratio.
Your employment situation is another element that influences your eligibility. Keeping your current work for more than a year will considerably boost your chances of receiving a credit card. To put it another way, you’ll need a stable job to receive a credit card.
The Bottom Line
You need to take care of certain factors to avail a credit card. The above mentioned factors are the most important if you want to receive a credit card in a hassle free manner. The best credit cards in India offer several cashbacks and discounts. However, to avail them, you need to have the required eligibility criteria. If you cannot fulfill any of the criteria due to which you are not able to get a credit card, you can also opt for a secured credit card. Secured credit cards are also a great strategy to improve or rebuild your credit score. The purchases made with these cards are the same as taking out loans because the bank finances the transactions until the due date. As a result, secured credit card transactions are taken into account when determining credit scores. So, credit card applicants who have been denied owing to a lack of or poor credit history can use these cards to improve or develop their credit ratings before apply for credit card.