Being able to spend without waiting for your salary to get credited may seem impossible. But this is possible with a credit card. Using a credit card, you can start making your purchases at the beginning of the month, even when your salary is yet to be disbursed. These purchases can be both essential and leisure related. However, getting a credit card often involves a complete approval process.
How to Get a Credit Card?
To get your credit card, apply online on your bank’s website or visit the bank physically. However, you need to meet a set of eligibility criteria to have your credit card application approved. There are many factors to consider when defining these criteria. For example, the bank will check your monthly income and age, among many other things. Your bank will also see whether you are a government or private employee. Finally, the bank will check your credit score to see your creditworthiness.
What Are the Eligibility Criteria?
Let’s examine the eligibility criteria to better understand your chances of getting approved for a credit card.
- Monthly Income
If you prove your monthly income is stable, your chances of getting approved for a credit card increase. In most cases, this monthly income should be the same as or more than the credit limit the bank is prepared to offer you. But if you have a sizeable fixed deposit with the bank, then this criteria may not matter. The bank can use this FD as collateral against your new credit card.
- Present Age
Almost no bank will validate a credit card application from someone outside of a defined age range. This age group, in most cases, falls between 18 and 60. So, some junior credit cards may be available at some banks tied to the parent/guardian’s bank accounts.
- Type of Employment
If you choose to credit card apply online, and then get approval, you most likely meet the employment eligibility criteria. This criterion says that you should be a salaried professional in either a government or private organisation.
- Credit Score or CIBIL Score
Banks also make sure your CIBIL score is okay. At this stage of your life (i.e. if you have a credit score > 750), it is safe for banks to provide you with a credit card. A low CIBIL score also means you can get a credit card.
How to Increase Chances of Approval?
1. Improve your credit score
A credit score is among the most important things banks consider when determining your credit card’s creditworthiness. Read more about how you can increase your chances of getting approved for a credit card.
- You should always pay your EMIs on time. If you have an existing EMI, you should pay it each month before the due date. This will increase your credit score.
- Another way to improve your credit score is to avoid applying for credit cards at several banks. Each time you apply, there is a hard inquiry that temporarily reduces your credit score.
2. Have all documents, low debt-to-income ratio, and savings
In addition to maintaining a good credit score, there are other steps you can take to improve your chances of getting approved for a credit card.
- If you wish to credit card apply online, ensure that you provide all the necessary documents, such as your pay slips and tax returns. These documents help demonstrate your creditworthiness.
- You should also have a lower debt-to-income ratio. You can do this by paying a partial downpayment on your existing loans. This will reduce your monthly EMIs and improve your debt-to-income ratio.
- Finally, you should have substantial savings in your bank account. This improves your financial health and creditworthiness to the credit card issuing bank.
3. Avoid common mistakes in the application
Finally, here are some mistakes you should avoid when applying for your credit card. Avoiding these mistakes can increase your chances of getting approved.
- Always provide full and accurate information.
- Double-check the eligibility requirements before submitting the application.
- Read all the fine print and understand the terms and conditions.
Conclusion
Whenever you wish to credit card apply online, following these guidelines can help you get prequalified. Once you receive your credit card, you can start making purchases confidently without worrying about dipping into your savings.
