What are the conditions for credit card eligibility?

A credit card is a valuable tool to manage your spending needs and provide short-term liquidity. But before you fill out a credit card application, it is important to know what the credit card eligibility requirements are. This is because your credit card application will be approved only if you meet the required eligibility requirements. On that note, here is an overview of the eligibility requirements for most major credit card issuers like IDFC FIRST Bank.

How does a credit card work?

Before you look at credit card eligibility, it’s essential to understand how a credit card works. A credit card is a plastic card that gives you the ability to borrow money from a lending institution, which you can use to make purchases. But how to get a credit card online? You must first apply for one online through the bank’s website or mobile banking app and be approved by the credit card issuer. Once approved, you will be given a credit limit, which is the maximum amount of money you can borrow.

Whenever you use your credit card to make a purchase, you are basically borrowing money from the credit card issuer. You will then need to repay the borrowed amount, plus any interest and fees that may be associated with the transaction.

Credit card eligibility criteria you need to be aware of

 

• Credit history

 

A good credit history shows that you can manage your credit well. This helps in getting you a credit card easily. If you have maintained a good track record with loan Equated Monthly Instalments (EMIs), payments, etc., it would reflect in your CIBIL score positively and make you eligible for a credit card from most banks.

 

• Monthly income

 

Banks set certain income requirements for approving credit cards that can vary depending on the bank and the type of credit card you are applying for. In general, you may need to have a steady income because the credit card issuer may use your income to determine how much credit card limit they are willing to extend to you.

 

• Nationality and age

 

To qualify for a credit card from reputed banks like IDFC FIRST Bank, you should be an Indian citizen or Non-Resident Indian aged 21 years or above. The age limit is higher than 18 because banks require the applicant to be an earning professional with a steady income so that they have the repayment capacity to pay their credit card dues.

 

• An existing relationship with the bank

 

When it comes to issuing credit cards, one of the main criteria that banks consider is an individual’s existing relationship with the bank. For example, if you have been duly maintaining a savings account or current account with IDFC FIRST Bank for a while then the bank may offer you a pre-approved credit card.

Applicants who meet all of the above criteria can have a good chance of being approved for a credit card. However, it’s important to note that each bank has its own eligibility criteria, so it’s always best to check with the bank directly before applying.