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How to check credit card eligibility?

How to check credit card eligibility?

As per data released by the RBI, India’s credit card outstanding debt witnessed a negative growth of 3% in the first 5 months of FY2020 and amounted to Rs.1.04 lakh crore. 

To counter this growing threat of NPAs in this segment, financial institutions are setting stringent eligibility requirements for their approval. Thus, existing and new credit card users need to tick off all the eligibility for a credit card to get their hands on this financial instrument without hassle. 

The process to check credit card eligibility

Selected NBFCs offer online credit card calculator to aid interested individuals to check their eligibility before applying. 

Following are the steps to check eligibility for credit card. 

  1. Visit your preferred credit card issuer’s website. 
  2. Open the credit card eligibility calculator.  
  3. Enter your name, type of employment, monthly income, and other relevant information. 
  4. Click on “check eligibility”. 

The results will appear on the screen instantly. Along with that, individuals also need to ascertain the required eligibility to enjoy instant approval. 

What is the eligibility for a credit card? 

Just like any other loan product, issuers ask for some specific criteria before sanctioning a credit card. These include –  

  • The applicant must be 18 years or above of age. 
  • He/she should be a salaried/ self-employed individual. 
  • Must have a steady source of income. 
  • Applicant’s credit score should be 750 and above.

The eligibility for a credit card, however, varies with different financial institutions. To apply for this financial tool, individuals need to contact their preferred institution and apply online. For this, all they have to do is fill a credit card application form and submit it online for instant approval. 

Most financial institutions also levy joining fees and other charges that individuals need to settle after the card approval. In this regard, individuals can opt for the Bajaj Finserv RBL Bank SuperCard available against minimal joining and annual fees, that offer a host of benefits. 

The NBFC also provides pre-approved offers that simplify and expedite the credit card application process. Such offers are available on a range of financial products like credit cards, business loans, personal loans, and others. You can check your pre-approved offer by entering your name and contact number. 

Besides knowing about the eligibility for a credit card, individuals also need to analyze the factors that affect them. 

Factors affecting credit card eligibility

Following are the aspects that affect your credit card eligibility. 

  • Low credit score 

Low credit or CIBIL score can be one of the primary reasons why a credit card application can be rejected. Individuals, therefore, need to develop healthy financial practices that will improve their credit score. 

  • Outstanding dues 

Individuals who want to get credit card need first to clear their existing debts. Individuals with substantial outstanding debt need to clear it first to increase their chances of availing a credit card without hassle.

  • Employment 

Employment plays a vital role in determining the eligibility for a credit card. For instance, a salaried individual who is working in an organization for the past year or more has a fair chance of enjoying approval for this financial tool instantly.  

  • Location 

There are several types of credit cards in the market, and each of them comes with varying accessibility. For example, some financial institutions offer different credit cards for metro and non-metro city residents.  

If any of the factors mentioned above are influencing your credit card eligibility, you can follow some useful tips to improve it. 

Tips to improve credit card eligibility 

Following are some of the tips that individuals can follow. 

  • Clear off the debts on time. 
  • Limit credit enquiry to minimal.
  • Lower the credit utilisation below 30%.
  • Decrease FOIR. 
  • Maintain a healthy mix of secured and unsecured credit in the profile. 

Following these simple tips, individuals can improve their eligibility for a credit card. Moreover, they also can opt for a personal loan on a credit card to consolidate the existing debts and eventually improve the eligibility drastically. 

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