Credit card applications are subject to certain eligibility requirements that vary from bank to bank. If you don’t meet the requirements set by the bank, your application may be rejected and this could negatively impact your credit score. To avoid this, it’s important to make sure you meet the eligibility criteria before applying for a credit card.
Information needed to submit a credit card application
Once you meet the eligibility requirements, you can apply for a card. Here is the common information you typically need to enter on a credit card application:
- Full name
- Date of birth
- Social security number
- Country of citizenship
- Email address
- Phone number
- Employment status, such as employed, self-employed, military, retired, unemployed
- Total annual income, including salary, wages, retirement income, investments, rental properties, alimony and child support
- Non-taxable annual income, or income that is exempt from federal income taxes, such as social security, public assistance, disability and workers’ compensation
- Monthly housing costs, including mortgage and rental payments
- Bank account information, including whether you have a checking and savings account
A good credit score is a numerical rating that reflects your creditworthiness or how likely you are to repay your debts on time. Different credit scoring models use different ranges and factors to calculate your score, but generally, a good score is between 670 and 800 on a 300-850 scale. Scores above 800 are considered excellent. Most consumers have credit scores that fall between 600 and 750. In 2022, the average FICO® Score☉ in the U.S. reached 714.
Having a good credit score can help you qualify for better interest rates and terms when borrowing money. However, different lenders use their own criteria for deciding whom to lend to and at what rates. So while having a good credit score is important, it’s not the only factor that lenders consider when deciding whether to lend you money or not.
|300 – 629||Bad|
|630 – 689||Average|
|690 – 719||Good|
|720 and up||Excellent|
To apply for a credit card, you need to meet certain eligibility criteria. Here are some of the factors that determine your eligibility:
- Age: You must be at least 18 years old. However, some banks have a minimum requirement of 21 years. The maximum age requirement also differs, and it generally goes up to 60 years.
- Annual salary: Your annual income determines if you’re eligible for a particular card. The minimum salary required to apply for a credit card in India is around Rs.3 lakh p.a. Although, it’s best to check this criterion with your bank as this requirement differs depending on the card issuer you choose.
- Nationality or residential status: Citizens, residents, and non-residents can apply. However, there are a few cards that are only available for Indian citizens.
It is important to go through the eligibility criteria before applying for a card. Make sure to check each criterion in the checklist to improve your chances of getting approved.
The legal age to qualify for a credit card on your own is 18. However, to be approved for a credit card, you’ll need to have a regular source of income. If you don’t have a regular source of income, you may have to apply for a joint credit card with someone else. The income requirements for a credit card don’t require you to work full-time.
Proof of Identification
Many card issuers require applicants to be permanent residents or U.S. citizens, though some cards are geared toward international applicants.
- Address Proof
- Social Security Number
You’ll need to report sufficient income to show you can repay the money a card issuer lends you. Applicants 18 to 21 are required to show proof of income (such as a job) or have a cosigner, according to the CARD Act of 2009.
- Must you have Bank Account
- Income Proof
Improving Your Credit Score
Your credit scores will rise if you:
- Make payments on time.
- Keep balances low on existing credit cards.
- Avoid new debt.
A full 30% of your credit score is determined by how much you owe. High credit card balances can be especially damaging. Your credit utilization ratio — your balance divided by your credit limit — ideally would be below 30% on each card. For example, if you have a limit of $10,000, it’s recommended to keep the balance below $3,000.
Lower your credit utilization by creating a plan to pay down an existing balance as quickly as possible. And consider paying off purchases more than once a month to keep your balance lower throughout the month.
In conclusion, credit card approval eligibility requirements include having a good credit score, being of legal age, and having a regular source of income. Understanding these requirements can help you make informed decisions about which credit card to apply for and increase your chances of approval.
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