Steps to Apply for a Credit Card in India

Credit cards are one of the most popular payment methods used nowadays for shopping and a plethora of online activities such as shopping, booking tickets or paying bills. They are accepted across almost all retail stores and online marketplaces in India.

Continue reading to know more about how to apply for a credit card at a financial institution. 

How to Apply for a Credit Card?

Various financial institutions may follow different steps, but the main steps are listed below. Follow these easy steps to apply for a credit card:

Step 2: Visit the bank’s official website and go to the Credit Card section. Click on “Apply” to start the application process.

Step 3: Enter your personal details, including your mobile number, address, occupation, monthly income, etc.

Step 4: Select the credit card type suited to your needs and click on “Check Eligibility”.

Step 5: If you meet the eligibility criteria for that credit card you will be asked to proceed with your application.

Step 6: Enter details like your name, email address, date of birth, and PAN. Also, enter your residential address in full along with the PIN Code.

Step 7: In the next stage, you might have to provide your employment details, like your company’s name, official address, and contact number.

Step 8: In the last step of the application, enter your mobile number and use the One Time Password (OTP) sent to your phone. Your application process will be completed.

Step 9: After this, you will receive a call from the respective bank for supplying the physical documents for the completion of the formalities.

Step 10: After your application has gone through the approval process, it will be dispatched to your communication address along with the card’s PIN. 

Eligibility Criteria

While the actual eligibility criteria for credit cards vary from one financial institution to another, here are some common eligibility criteria for credit cards.

  1. Age

You have to be above 18 years of age to become a credit card holder. Even in the case of being an add-on credit card holder, you have to be above this age limit.

  1. Credit Score

Generally, all financial institutions check your credit score to check whether you have a good credit history and pending loans. The higher your credit score (above 750), the higher will be your creditworthiness in the eyes of lenders. In contrast, if you are not punctual in your debt repayment, your credit score will be low and it will be harder for you to get a credit card.

  1. Income

Depending on the bank, the minimum income parameter for credit cards tends to vary. You can check it online on their respective websites. You can be a salaried employee or a self-employed person. Regardless, you will have to produce proof that you have a steady source of income.

  1. Nationality

Since you are applying for a credit card in India, most issuers will require you to be an Indian citizen residing in India or a Non-Resident Indian (NRI).

Required Documents to Apply for a Credit Card

Given here are some of the important documents that you need to apply for a credit card:

Documents for Salaried Professionals

  1. Identity proof: PAN card, Driving Licence, Aadhaar card, Passport, and Voter ID card (any one of the mentioned)
  2. Address proof: Passport, Ration Card, Telephone Bill, Voter ID, electricity bill, Driving Licence, previous 2 months’ bank statement (any one of the mentioned)
  3. Income proof: Latest payslip, Form 16, Income Tax Returns (any one of the mentioned)

Documents for Self-Employed Professions

  1. Identity proof: PAN card, Driving Licence, Aadhaar card, Passport and Voter ID card (any one of the mentioned)
  2. Address proof: Passport, Ration Card, Telephone Bill, Voter ID, electricity bill, Driving Licence, previous 2 months’ bank statement (any one of the mentioned)
  3. Income proof: Income Tax Returns with computation of income, proof of business continuity, certified financial documents, PAN card (any one of the mentioned)

Documents for Students

  1. Identity proof: PAN card, Driving Licence, Aadhaar card, Passport, and Voter ID card (any one of the mentioned)
  2. Address proof: Ration card, electricity bill, passport, driving licence, voter ID (any one of the mentioned)
  3. Enrolment proof: Admission Slip, College or university ID card, study certificate from a recognized college or university (any one of the mentioned)

Documents for NRIs

  1. Identity proof: Driving Licence or Passport
  2. Address proof (mailing address in India): Voter ID, Driving licence, Passport, Electricity bill, Telephone Bill or Post-paid Mobile Invoice, bank account statement, title deed of the property, lease deed, rental agreement (any one of the mentioned)
  3. Overseas mailing address: Passport, company appointment letter, company ID card, Driving Licence, Government-issued ID card, lease agreements, Overseas bank statement, credit card statement, utility bill, rent receipt (any one of the mentioned)

Things to Consider before Applying for a Credit Card

Consider the following factors before applying for a credit card:

  • Check Your Credit Score

Your credit score plays an important role in determining whether you will get a credit card and the terms and conditions imposed on them. Your credit score reflects your credit history and behaviour and it is checked by all financial institutions.

In India, the Credit Information Bureau (India) Limited (CIBIL) is the oldest and the most trusted credit bureau licensed by the Reserve Bank of India. The CIBIL Score is a three-digit credit rating, which ranges between 300 and 900. Try to keep your CIBIL score above 750 to avail the best terms and conditions for your credit card.

  • Compare Different Offers

Conduct some research to find out which credit card offer is best suited to your needs. Always pay special attention to the interest rate, annual fee, rewards, and penalties on these cards.

Final Word

Credit cards are gaining popularity among many users. Applying for a credit card online is very easy and you can do it by visiting the lender’s website. Make sure that you have all the necessary documents to smoothly complete the application process. Also, do thorough research about the terms and benefits of various credit cards. Make a healthy credit score to get better terms on your new card. And, use your credit card wisely to avoid penalties and various charges. 

Frequently Asked Questions

What is an interest-free period?

Most credit cards have an interest-free period. It is the duration from the transaction date to the due payment date. If you can make full payment of the amount within this interest-free period, you do not have to pay anything extra to the financial institution.

What is the annual fee for a credit card?

Many cards require the payment of an annual fee for continuing the benefits of the card. Some cards come with no additional charges. There are also some banks that offer credit cards free of cost as an introductory offer. However, once you complete the one-year tenure, you will be charged the annual fee.

What is a balance transfer?

In a balance transfer facility, you can switch to a new credit card issuer while the current outstanding amount is moved to this new card under a 0% Annual Percentage Rate (APR) for a specified time period. Many credit card issuers give an option for a balance transfer. 

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Disclaimer: This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The article may also contain information which are the personal views/opinions of the authors. The information contained in this article is for general, educational and awareness purposes only and is not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision, whether related to investment or otherwise, taken on the basis of this article.

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