Credit Card Eligibility - Check Criteria & Documents Required

Over the years, with higher disposable income, consumption patterns have undergone a drastic change. People are seeking different methods of paying for their purchases, especially those that offer benefits like short-term credit, reward points or discounts. This has led to a rising preference for Credit Cards. Credit Cards also make shopping safer and provide a range of benefits to customers. While India is still primarily a Debit Card market, the use of Credit Cards is rising rapidly.

Credit Card issuers (e.g., banks) have strict eligibility criteria for approving a Credit Card and conduct a thorough background check before issuing one. There are some general Credit Card eligibility criteria like age, salary, nationality and a few additional factors such as credit score and existing debt, which together, determine whether or not a Credit Card is issued to an applicant. While specific eligibility criteria may differ, most banks have similar conditions, as detailed in this blog post.

Credit Card Eligibility Requirements

• Age: To apply for a Credit Card, one needs to be at least 18 years old. However, since a large majority of the adult population 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 Income: Credit Cards offer credit for a short period of time. One has to pay one’s pending dues at the end of every month. Banks take into account the repayment ability of the applicant before issuing a Credit Card. The annual income 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: 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 bank before applying for a Credit Card.

Other 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 an applicant’s level of financial discipline through their spending pattern and repayment of dues. These agencies give a credit score to 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. Banks require a credit score between 750 and 900 to issue a Credit Card.
• Existing Debt: When you use a Credit Card, you essentially take on debt, i.e. avail a short-term loan. If you already have a lot of debt, it doesn’t make sense for banks to provide you with a tool for additional debt. Having existing debt that exceeds your permissible credit limit can affect your chances of getting a Credit Card.
• Employment: Banks generally wouldn’t like to trust an applicant who doesn’t have a stable source of income, since that has a direct impact on their ability to repay their dues. Accordingly, 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 your chances substantially as it signals that you have a stable job and you will be able to pay your Credit Card dues on time.
• Residence: While you can apply for a Credit Card online, certain banks take your place of residence into consideration. Some Credit Cards are only available to people residing in a particular city or region.

Documents Required to Apply for a Credit Card with ICICI Bank:

• KYC: Aadhaar Card, Passport, Voter ID or Driving Licence

• Address Verification: Utility bills (electricity, water, gas), Passport or Aadhaar Card

• Income Proof: Salary slips or latest bank statement

• PAN Card or Form 60

• Recent passport-sized photographs.

Complete and accurate information is needed to process your Credit Card application efficiently.

Additional Documents

To apply for a Credit Card, you might be asked to submit extra documents like business registration certificate or financial statements, depending on the Card type.

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 repaying the Card dues without delays. ICICI Bank Credit Cards offer a range of lifestyle and travel benefits, along with other rewards. ICICI Bank Credit Cards are available to people with varied 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 a Credit Card varies according to the issuer and Card type but typically ranges from ₹ 2.5 lakh to ₹ 3 lakh annually.

What is the age eligibility requirement for an ICICI Bank Credit Card?

To apply for an ICICI Bank Credit Card, you should be between 21 years and 100 years of age.

Do Credit Card issuers require income proof?

Yes, Credit Card issuers require income proof to assess your ability to repay your Credit Card dues. Lenders might 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+ years) and submit necessary documents like photo ID and address proof. Banks may have specific criteria, so check individual requirements before applying.

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