Want a credit card of your choice? You need to have a good credit score

In today’s age of online shopping, cash is not the king. You need to have one or more ways of making payments online to fetch those lucrative online deals.

Without any transaction charge and need of having any payment device, but a smartphone, the Unified Payment Interface (UPI) has gained most acceptability. But debit and credit cards are also widely used in organised markets as a replacement for hard cash.

With an interest-free credit period, credit cards can increase your spending capacity. However, unjust use of credit cards beyond your paying capacity may put you in a debt trap.

If you can use it judiciously, a credit card can get you better deals than a debit card – like discounts on movie tickets, travel bookings, shopping, along with cashbacks, reward points etc.

Moreover, without having to pay the entire sum upfront, EMI options on credit card spending also help you purchase items that you want to buy for a long time.

However, it may not be easy to get a credit card, especially for the first time, in favourable terms and conditions and with a good credit limit. This is because a higher credit score is needed for issuance of a better card. So, without any previous credit history, it’s difficult to get a good card

How to Apply

To apply for a credit card, you need to take the following steps:

• Step 1- Visit the nearest branch of the bank from which you want to get a card and meet a credit card representative
• Step 2- Explain your needs and requirements to the representative, so that he/she may suggest the most suitable credit card for you
• Step 3- Fill and submit the credit card application form along with the documents needed
• Step 4- In case your request is verified in satisfaction with the bank, your credit card will be issued

Instead of visiting a bank branch, you may visit the website of the bank, compare the features of the different credit cards on offer along with the charges, and apply online.

Eligibility Conditions

For both online and offline application processes, the eligibility conditions and requirements of the documentary proofs are the same.

Here are the eligibility conditions for applying for a credit card:

Age

To become eligible for a credit card, an applicant needs to be a minimum of 18 years old. However, in most cases the minimum age to get an add-on card is 15 years.

Residential Status

Mostly, Resident Indians are eligible to get a new credit card. However, Non-Resident Indians (NRIs) are allowed to apply for certain credit cards.

Source of Income

An applicant needs to have steady income, be it salary or professional income. Currently, the minimum income requirement is Rs 2 lakh per year in most cases, with some variations in the figure depending on the guidelines of the issuing authority .

Credit Score

To get a card of your choice easily, you need to have a good credit score. On the other hand, like a loan, you may need to have collateral to get a good credit card issued – for example a secured credit card against a fixed deposit. In absence of any credit score, your current income level may be taken into consideration for getting a credit card issued.

Documentary Proofs

You may present any one of the document – out of the eligible documents – as a proof for the following:

• Identity Proof: Passport, PAN card, Voter ID, Aadhaar card and Driving licence.
• Address Proof: Passport, Voter ID, Aadhaar card, Driving licence, Ration card, Property documents, Lease/Rent agreement, Utility bills of the last three months
• Income Proof: Income Tax Returns, last three month’s Salary Slips, Letter of Employment, Salary Certificate