Credit cards have become popular with the millennials, and there are several reasons for their popularity. People no longer use these cards only when they are in financial trouble. Instead, credit cards like the Bajaj Finserv RBL Bank SuperCard have become the preferred
mode of payment for the instant discounts and benefits they provide. However, before applying for a credit card, you should go through the issuer’s credit card eligibility criteria . There are two stages of looking at the eligibility criteria.
First, the formal norms regarding age or birth proof are put on paper by the issuer. Second, informal eligibility criteria are more important functionally. These are not enforced by the lender, but you should definitely consider this for a successful run with your credit card.
The second category of eligibility criteria helps build a formative concept about credit cards. Having an understanding of these will help you spend more judiciously. You will always weigh the advantages of a credit card with your actual requirements before choosing a card.
So, as overlooked as it is, credit card eligibility is an important concept to mull over. Otherwise, it might trigger inordinate expectations and consequent frustrations. Wise financial decisions will always help you in the long run, whether it is through substantial savings or strategic investments. Let us now take a look at the eligibility norms that you must comply with to get your desired credit card.
Basic Eligibility Criteria Laid Down by Lenders
The first criterion that cannot be negotiated with is age. However, the age bar is thoughtfully set so that no one is deprived of a credit card. The minimum age for credit card eligibility varies between 21 and 25 years. Sure enough, nobody needs a credit card before 21 years because it takes time to secure a decent job. The upper limit for the age criteria is close to 70 years. People pushing 70 must contact the lending institution for additional age-related queries.
Next comes nationality and address proof. Most lenders require their customers to be Indian residents with a valid address proof. Make sure you have ample copies of your recent passport-sized photograph. Keeping these documents ready makes the initiation process smoother.
Eligibility Criteria You Should Consider
These are the unofficial requirements for making the most out of your credit card.
· Income Status: This is the most important point to consider. It is recommended that you have a steady income over at least 3-4 years. Although some institutions do not require income proof, it is necessary to judge for yourself if you can sustain the card. If you own a business, ask yourself if the flow of revenue is steady enough for you to invest through a credit card conveniently. Institutions keep the income requirement basic with lower age. While this facilitates the growth of an individual, you should think realistically about where you would be placed in 5 years. These considerations will also help you choose the best card available.
· Liabilities: If you already have multiple debts to pay off, applying for a credit card may not be a good idea. However, if you can strategically plan it, you may emerge as the winner in the end. Credit cards offer a balance transfer facility. So, if you are paying more interest through another card, you can transfer the liability to a new card that offers lower interest. However, procuring such a card will require thorough scrutiny of your financial history. Calculate the entire pathway of the repayment period to understand if the new card will be a good choice for the future. This is an important consideration because interest rates are often low, if not nil, in the first year of joining. Will your salary appraisal next year be commensurable with an increased interest rate? That is a vital question to answer.
· Type of Card: The type of card your lender will consider you for depends on the collateral. If the collateral, such as a fixed deposit, adds up to a substantial amount, the lender places more faith in you. The collateral acts as a security deposit against which you can borrow more money or increase your credit limit. The type of card that will be issued to you will thus be a secured card. On the other hand, if you do not have such assets to convince the issuer of your financial status, you will be issued a non-secure card. These cards have reduced benefits, but you can always rise up the ranks.
Furthermore, making payments on time is an important part of your credit card eligibility. Make sure your income is enough to pay your monthly instalments in full. Keeping outstanding amounts can attract fines and extra charges. To make optimal use of the advantages of a credit card, you can opt for the Bajaj Finserv RBL Bank SuperCard. With this card, you can avail of no-cost EMIs, rewards on payments and amazing discounts.
Understanding the eligibility criteria tied to a credit card is key to choosing the best-suited card. Your income status and liabilities or assets determine the credit limit you should expect. Choose the best card according to your shopping habits. Finally, make sure you pay your dues on time, so that you are not charged extra as interest or late fees.