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Know the eligibility criteria applicable for a Credit Card

RBL Bank Sep 13, 2024

Credit cards have become a widely used tool by many individuals to manage their finances. Whether it's covering everyday expenses or indulging in occasional splurges credit cards offer flexibility and convenience of instant payments. However, obtaining one isn’t as simple as applying. Knowing the eligibility criteria beforehand can save you time and set you up for success.

 

Let us look at the basic requirements banks consider before issuing a credit card.

Eligibility Requirements for a Credit Card

  • Age: You must be at least 18 years old to apply. Some banks may have a minimum age requirement of 21 years. The upper age limit varies from 60-65 years of age.
  • Income: The minimum income range generally falls between INR 1 lakh to INR 3 lakhs annually, although this can vary based on the card type. Premium credit cards often come with stricter income requirements.
  • Employment Status: Whether you are self-employed or salaried, a stable source of income is a must for credit card eligibility. Banks also prefer applicants with stable job histories. Being in your current job for more than a year can improve your chances of getting approved.
  • Credit Score: One of the most critical factors is your credit score attributed by CIBIL. A score between 750 and 900 is typically considered excellent and boosts your chances of approval.
  • Credit Utilization Ratio: Banks assess how you manage your existing credit. A lower credit utilization ratio (the amount of credit used versus the credit limit) is seen as a positive indicator of financial responsibility.
  • Existing Loans or Applications: Applying for too many loans or credit cards in a short period can hurt your eligibility. It’s advisable to leave a gap of at least six months between applications.

It is important to note that these basic criteria as may differ depending on the bank or type of credit card. It is always wise to verify specific details on the bank’s website.

Documents required for a new credit card

To complete your credit card application, you will need to provide specific documents which typically include:

  • Completed credit card application form
  • Identity proof (Aadhaar Card, PAN Card, Passport, etc.)
  • Address proof (Utility Bill, PAN Card, Aadhaar Card, Driving License, etc.)
  • Passport-size photos
  • Recent salary slips (usually last 3 months) or bank statements
  • Form-16 (for salaried individuals)

For self-employed applicants, additional documents such as income proof and business proof will be necessary. Students can also apply for specific student credit cards by submitting their student ID and other basic documents.

Final Thoughts

A credit card can be a great financial tool when used wisely. By understanding the factors that influence credit card approval such as age, income, credit score, and employment stability - you can improve your chances of securing a card that aligns with your needs.

Explore RBL Bank Credit Cards

RBL Bank offers a wide range of credit cards tailored to suit diverse lifestyles and financial needs. Whether you’re looking for travel perks, cashback benefits, or shopping rewards, there’s a card tailored for you. Apply for your RBL Bank Credit Card today and enjoy exclusive offers and benefits!

Disclaimer: Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result. Visitors to this blog/ website w.r.t products & services offered by RBL Bank Limited herein, shall ensure that the comments / feedback posted shall be restricted to the contents published herein and shall not contain such language that may be un-parliamentary or against any religion, caste, section of society, political view etc. While our endeavor is to publish the comments that are submitted, however, all comments/feedback shall be subject to internal review by RBL Bank Limited. We do not guarantee that the comments that are submitted will be published.

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