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With higher disposable income, consumption patterns have undergone a drastic change. Today, you can either make a purchase through cash or you can use short-term credit mediums like Credit Cards. The usage ofCredit Cardsalso makes shopping safer and provides a range of incentives to customers. India is primarily a Debit Card market but the use of Credit Cards is rising rapidly.
In 2019, Indians spent ₹6 lakh crore using Credit Cards, a 30% jump from ₹4.6 lakh crore in the previous year. The total number of Credit Cards in circulation touched 49 million in May 2019, from 38.6 million a year earlier. Banks have strict Credit Card eligibility criteria and conduct a thorough background check before issuing one. There are some general Credit Card eligibility conditions like age, salary, nationality and a few additional factors that determine issuance, such as credit score and debt. While the specific eligibility criteria may differ, most banks have similar conditions:
Credit Card Eligibility Requirements
- Age:Toapply for a Credit Card, one needs to be at least 18 years old. However, since a large majority does not start earning by 18, most banks issue a Credit Card only after the applicant has attained the age of 21. Just like the minimum age, the maximum age differs for every bank, with most banks issuing Credit Cards till the age of 60.
- Annual salary:Credit Cards offer credit for a short period of time. One has to pay his/her pending dues at the end of every month. Banks take into account the repayment ability of the applicant before issuing a Card. The annual salary of the applicant is one of the most important factors in the issuance of a Credit Card. Typically, banks demand a net annual income of ₹2.5 lakh for Credit Cards. However, some banks have stricter eligibility criteria.
- Nationality:A wide variety of banks cater to the Indian market that includes domestic as well as foreign banks. Citizens, residents and non-residents can apply for a Credit Card, but some banks issue Credit Cards only to Indian nationals. It is important to check the exact Credit Card eligibility with the specific banks before applying for a Card.
Factors Affecting Credit Card Eligibility
- Credit score:With the emergence of digital payments and tools, it has become easier to track the spending patterns of customers. Specialised credit agencies ascertain the level of financial discipline through the spending pattern and repayment of dues. These agencies give acredit scoreto every customer depending on his/her past financial behaviour. Banks use the credit score to determine whether a Credit Card should be issued or not. A high credit score helps in getting a Credit Card easily and vice versa. Banks consider a credit score between 750 and 900 for a Credit Card.
- Existing debt: When you use a Credit Card, you essentially take on debt. If you already have a lot of debt, it doesn’t make sense for the banks to provide you with a tool for additional debt. Having existing debt that exceeds the permissible limit can affect your chances of getting a Credit Card.
- Employment:No bank would like to trust an applicant who doesn’t have a stable source of income. The employment status of an applicant has a significant impact on his/her chances of getting a Credit Card. Being employed for over a year increases the chances substantially as it signals that you have a stable job and you will be able to service Credit Card dues on time.
- Residence:While you can apply for a Credit Card online, certain banks take the place of residence into consideration. Some Credit Cards are only available to people residing in a particular city or region.
What are the eligibility criteria for a Credit Card?
When you meet the eligibility requirements like having a stable income and a good credit history, banks can assess your creditworthiness swiftly. This speeds up the Credit Card approval process, letting you enjoy the benefits sooner. Demonstrating financial responsibility also boosts your chances for higher credit limits and better offers.
Eligibility ensures that you can conveniently make purchases, manage expenses and access emergency funds promptly, enhancing your financial flexibility and providing peace of mind.
Documents required to apply for a Credit Card with ICICI Bank:
- Aadhaar Card, Passport, Voter ID or Driving Licence for KYC
- Utility bills (electricity, water, gas), Passport or Aadhaar Card for address verification
- Salary slips or latest bank statement as proof of income
- PAN Card or Form 60
- Recent passport-size photographs
Complete and accurate information is needed to process your application efficiently.
Conclusion
While Credit Cards enhance the shopping experience for the cardholder, they should be used carefully. One should opt for a Credit Card only if he/she is confident of servicing the Card dues without delay. ICICI Bank Credit Cards offer a range of lifestyle and travel benefits, along with other rewards. ICICI Bank Credit Cards are available for people with different net annual incomes and can be customised as per the applicant’s needs.
FAQs
What is the minimum salary required to apply for a Credit Card?
The minimum salary required to apply for an ICICI Bank Credit Card varies according to the issuer and Card type, typically ranging from ₹2.5 lakh to ₹3 lakh annually.
Do Credit Card issuers require Income proof?
Yes, Credit Card issuers require income proof to assess your ability to repay. Lenders may ask for salary slips, bank statements or tax returns. Income verification helps determine your credit limit and eligibility.
What should one do to qualify for a Credit Card?
To qualify for a Credit Card, maintain a good credit score, provide proof of stable income, meet age requirements (usually 18+) and submit necessary documents like photo ID and address proof. Banks may have specific criteria, so check individual requirements.
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