This question gets repeated a lot in our FinTalks Facebook Group, especially from beginners who want to start their credit journey and get a credit score.
In today’s post, I will discuss all possible methods by which you can apply for a credit card. At the same time, I will also list the possible documents you need to have at the time of application.
Kindly note that this entire experience varies from bank to bank, and even from person to person. All I am trying to do is to give you a general idea of the scenario.
So, here we go!
How to Apply for a Credit Card as a Salaried Professional?
If you are employed somewhere and are getting a monthly salary, you may apply for a credit card as a salaried professional.
Documents Needed:
- Your PAN Card.
- Your Address Proof: Aadhar Card, Passport, Voter ID Card, Ration Card, Driving License, Rent Agreement, Property Documents, Utility Bills.
- Your last 3 months Salary Slip OR last 3 months Bank Statement.
Depending on the bank and the card you are applying for, you may or may not need all the documents. Proceed to the Credit Card Application page and you will get more details about the necessary documentation.
Eligibility Criteria:
The eligibility criteria for various credit cards depend on your Age and Income.
- Age: You need to be at least 18 (in some banks, 21) to get hold of a credit card.
- Income: Depending on your annual salary, you may get access to specific credit cards. This varies from card to card. Even if your income is a bit lesser than the required minimum, you may request the bank for the card.
How to Apply for a Credit Card as a Self-Employed Professional?
If you run a business or a sole proprietorship, or if you are a freelancer earning money by providing different services, then you can apply for a credit card as a self-employed professional.
Documents Needed:
- Your PAN Card.
- Your Address Proof: Aadhar Card, Passport, Voter ID Card, Ration Card, Driving License, Rent Agreement, Property Documents, Utility Bills.
- Your Latest Income Tax Return.
Depending on the bank and the card you are applying for, you may or may not need all the documents. Proceed to the Credit Card Application page and you will get more details about the necessary documentation.
Eligibility Criteria:
The eligibility criteria for various credit cards depend on your Age and Income.
- Age: You need to be at least 18 (in some banks, 21) to get hold of a credit card.
- Income: Depending on your latest ITR, you may get access to specific credit cards. This varies from card to card. Even if your income is a bit lesser than the required minimum, you may request the bank for the card.
How to Apply for a Credit Card with No Income Source?
If you are a student without an income source, it would be quite hard initially for you to get a credit card, at least for the first-ever credit card that gets issued to you.
But don’t worry, there are a number of ways you can speed up the process. I am going to discuss them here.
- Get a Pre-Approved Credit Card. (Check below)
- Get a Secured Credit Card against an FD. (Check below)
How to Apply for a Pre-Approved Credit Card?
Pre-approved cards can be offered to anyone, irrespective of whether you are doing a job or a business or just studying. The leading banks that offer pre-approved credit cards to their users include HDFC Bank, ICICI Bank, Axis Bank, and SBI.
Documents Needed:
Nothing. Since it is a pre-approved credit card, you do not need to submit any documents.
Eligibility Criteria:
The eligibility criteria depend on a lot of factors, but banks often offer Pre-Approved Credit Cards to people who fulfill the following (minimum one criteria).
- Have a high balance in their savings account.
- Have a huge monthly transaction volume per month.
- Have a pre-existing healthy credit score.
Having all 3 will definitely boost your chances of getting a pre-approved credit card with a good credit limit.
Please note that the minimum age bar of 18 (or 21 for some banks) still applies here.
How to Apply for a Secured Credit Card?
If none of the above-listed methods work for you, and you need a credit card immediately, then this one will definitely help. No matter whether you have an income or not, you can apply for a secured credit card anytime from your bank.
A secured credit card is a credit card offered to you against a Fixed Deposit. Your FD serves as the collateral in this case. The credit limit you get depends on the amount of FD you are keeping. You can get up to 90% of the FD amount, however, this can be lower too. It is not fixed and varies from person to person, and bank to bank.
Documents Needed:
Nothing. Since it is a secured credit card offered against an FD, you first need to do an FD with your bank and then opt for the credit card against the FD. No separate set of documents are asked for the credit card.
Eligibility Criteria:
A secured credit card is the easiest one to grab. Since you are ensuring its security with collateral, you will definitely get the card if you are above 18 (or 21 for some banks).
Thank you for reading. Don’t forget to join our FinTalks Facebook Group & FinTalks Telegram Channel for regular updates on banking and finance.