Credit cards have made our life easier, as now we can purchase and pay bills with just one swipe. But, if you want to purchase a credit card, you need to meet its eligibility criteria. And you know what the eligibility criteria are determined by the lender, it means it can vary based on your lender. So, today in this article we learn about the factors that can impact your credit card eligibility. Let’s begin reading this article further.
- Age of the Applicant
Your age plays a primary role in credit card eligibility, usually, the minimum age limit to purchase a credit card is 21 years. But it can vary from lender to lender, as SBI credit card eligibility requires only 18 years of age, whereas HDFC Bank credit card eligibility for age is a minimum of 21 years. So do check the credit card details while purchasing it, this way you can find out whether you are eligible or not.
- Steady Monthly Income
The lender will provide you a credit card if you meet its minimum income requirement because then the lender is satisfied that you will pay the bills without any due. But it’s not always mandatory to have a steady income to purchase a credit card, because there are also secured credit cards that you can purchase against securities like Fixed Deposit.
- Credit Score
Do you know that your credit score can impact your credit card approvals, so before you apply for a credit card, do check your credit score online? This way, you can save yourself from application rejection and save time to improve your credit score, if it is low. When your credit score is low? Your credit score will be low if you haven’t paid your previous loan EMIs, credit card debt and if there’s an error in your credit report. As per the lender’s credit card eligibility, and ideal credit score is 750 or above.
- Current Obligations
If you have any ongoing loans and active credit cards, it can question your credibility for a new card. So, to purchase a new card your monthly income should be high, meeting the minimum income requirement will not be enough for you. Also, if your current loans or credit cards have any history of due or nonpayment, it can leave a negative impression on your new card application.
- Add Cosigner
By adding a cosigner, you can increase your credit card eligibility. So in case you are not able to pay the bills, the co-signer will be liable for the same. Usually, the option of co-signer is available when the age of the applicant is either too small to purchase a credit card or the applicant doesn’t have a steady income to pay the credit card bills.
- Residence State/City
Sometimes the applicant’s age, income credit card eligibility varies based on the state or city they live in. So, compare the credit offers and see which lender provides the best offer to you as per your age and income. This way, you can get the luxuries of a credit card without any trouble.
Next time you apply for a credit card, do take care of the above-mentioned factors because this is how you can get instant credit card approval.