Before applying for any credit product, remember to check your eligibility and keep the required documents ready!
Credit Cards are a hugely popular and convenient way of making payments. But how easy or difficult is it to get one? That depends on several factors. If you have a good Credit Score and a stable income source, you may get approved for a Credit Card with a high credit limit and attractive reward programs. But, if you have a low Credit Score, limited credit history, or low income, you may find it challenging to get the card you want or be approved for one with a low credit limit and high interest rate.
Here are a few things you can do to get the Credit Card you want.
1. If you hold an active salary account with a bank, approach them for a Credit Card. Since you have a banking history with them, they may have a pre-approved Credit Card offer for you which you can avail of with minimal paperwork.
2. If you are not interested in the Credit Cards that your bank offers, scout online for Credit Card deals that other banks are offering. For example, on lending platforms like BankBazaar, you can search and compare the various pre-approved loans and Credit Cards you may be eligible for listed in one place. Check the offer that matches your requirements and apply for it.
3. If you are a non-salaried applicant, the process may be trickier for you. Due to the absence of a regular source of income, the bank may view you as a high-risk borrower. The workaround for this is that while you may get the Credit Card you want, the issuing bank may ask you to pledge an FD with them as collateral. You may be offered a card with a spending limit of up to 90 per cent of your deposit.
Another way to have a Credit Card is by getting an add-on card through a family member’s Credit Card. The add-on card carries a unique number and is attached to the primary Credit Card holder’s account, with which it will share the spending limit. So, while the primary cardholder can track your spending, they will be responsible for all dues raised on the add-on card.
Before applying for any credit product, remember to check your eligibility and keep the required documents ready. Salaried borrowers, though preferred due to their income stability, may still be required to adhere to other eligibility criteria. This may include a minimum salary requirement (typically Rs. 30,000 and above) and a minimum work tenure with their current employer. If you have all documents in order, digital KYC makes applying for a Credit Card quick and easy. All you have to do is go online and apply.
When it comes to Credit Cards, banks pay special attention to your Credit Score when reviewing your application. A higher Credit Score indicates a healthy credit history and improves your chances of being approved for a Credit Card. On the other hand, a low Credit Score may indicate irresponsible financial management and lower your chances of approval.
Before applying for a Credit Card, check your Credit Score and work on improving it if it is low. Besides offering ease of making payments, credit cards can help you build your Credit Score, making it easier for you to access credit in the future. If you want to apply for a Credit Card, the points above serve as a handy guide to get you started.
This article first appeared on Financial Express.