Credit cards are today a way of life, driven by the growth of online transactions and the credit industry. Most banks market credit cards, offering benefits and attractive rewards for usage to attract customers.

If you are looking to get your first credit card or want to secure an additional card that offers privileges tailored to your needs, being rejected is a disappointment you want to avoid. It is wise to study the reasons and apply for a credit card the smart way.

Eligibility criteria for a credit card.

Leading Credit card lenders judge a request based on the individual’s policy. Listed below are the eligibility criteria required:

What is the monthly income required?

A steady monthly income is the security factor that lenders require, ensuring the credit card user can settle the usage amount on the due date. For salaried individuals, the minimum income requirement is a monthly salary transfer of ₹25000/-, while self-employed applicants must submit an Income Tax return of ₹6 lakhs or more. 

The salary slip and the corresponding Bank statement are required as proof. Self-employed applicants need to submit a copy of the ITR and the Banking details of their current account.

Not able to fulfil the income criteria? 

If your income is not sufficient, or you cannot provide the documentary evidence required for regular earnings, adopt the following alternatives;

• Approach the Bank with which you have an existing relationship or a salary account: you can be offered a pre-approved credit card on the basis of your account.
• A spouse, parent or child can receive an add-on card for usage on behalf of the primary cardholder. The credit limit is shared by both cards.
• If you are holding a previous card but are unable to provide proof of income currently, apply to the alternate lender based on a card-to-card.
• The HDFC Bank provides a credit card to salary account holders with an income of ₹ 15000/- and above.

Your employer should feature in the approved company list.

A successful employer can sustain growth and reward employees with timely remuneration. To ensure the applicant can maintain a lifestyle and regular credit card usage, banks compile a list of approved companies. The HDFC company category list, the ICICI Bank-approved list of companies, and the AXIS Bank list of approved companies all contain comprehensive lists of companies ranked according to their priority for sourcing credit cards and personal loans. These lists include reputable companies that feature on the Economic Times 500 list, top companies, profitable organisations, and the government sector.

Your employer should be included in the list of approved companies to obtain a credit card from the Bank; therefore, do check before applying. The employees of the listed companies are issued credit cards readily with a reasonable limit, whereas a credit card application from an applicant working in a non-listed, proprietorship or partnership firm will not be processed further.

Credit card solutions for applicants employed with non-listed companies.

• In case you are employed with a non-listed company, the benefits of the ICICI credit card are provided to applicants with an income of ₹ 50000/- and above.
• Look to building a relationship with the Bank you have an account with, as a healthy banking record, with a good average Bank balance maintained, will bring you a pre-approved credit card.
• AXIS Bank issues credit cards to applicants from non-listed companies if they have an AXIS Bank salary account or a CIBIL score above 750 points.
• If you have funds in a fixed deposit with a Bank, you will be offered a credit card based on the amount held by the Bank. With a credit limit of 80% to 90% of the deposit.

What are the CIBIL score requirements for a credit card?

Your CIBIL score today is not just a rating, but a reflection of your financial management skills and standing. A good score is the gateway to securing easy credit, whether through a personal loan online or the best credit card in India. The acceptable score to process a credit card varies from Bank to Bank. The minimum score required to apply for an HDFC Credit card is 720 points and above. ICICI Bank and AXIS Bank require a CIBIL score of 750 points and above to issue a credit card. 

Most Banks have now adopted a digital strategy for processing credit cards. When entering your details on the ICICI Bank credit card application link, your CIBIL score is accessed online. If the score exceeds the required benchmark, processing will continue; however, if the CIBIL score is not acceptable, further processing will be halted.

Before issuing a credit card, your CIBIL history is reviewed for any recent defaults or credit applications to other banks, as well as other credit enquiries. ICICI Bank allows a maximum of three enquiries in the past three months. If the number of enquiries exceeds this limit, the Bank assumes that the customer intends to take multiple credit cards and may not be able to repay debts; hence, the credit card request is declined.

If your CIBIL score is below the required benchmark?

• Check the individual score before submitting your credit card application to ensure it meets the eligibility criteria of the particular lender.
• If you do not have a credit history, you can initiate your credit score by applying for a commodity loan.

• Pay the EMI of your existing loans on time and keep the credit utilisation of existing credit cards below 35% of your limit to build your Credit score.
• Avoid applying to multiple lenders as each CIBIL inquiry will downgrade your score by 10 to 15 points.

What are the other reasons for rejection of a Credit Card?

If your profile meets the primary criteria required by Banks for a credit card, listed below are some reasons why your credit card application may be rejected.

Discrepancy in documents: The KYC and income documentation provided must be clear and valid. Take note of the following to avoid delays.

• The Name and Date of Birth must match in the provided documents; in the event of a discrepancy, an additional document is required. 
• Your current address and permanent address in the form should match the information provided in your KYC documents.
• The salary credited to the account should be as per the salary slip provided.
• Wrong information.

Decline due to unsuccessful verification.

KYC Verification: ICICI Bank conducts a video call with the customer to verify the KYC documents. The applicant is required to show the original PAN Card over the call and verify the signature. To conduct a successful verification online, take note of the following:

• Keep original documents ready at hand.
• Make sure your signature matches the proof on your PAN Card.
• The information asked on the call should substantiate the details of the documents provided. 
• Ensure you are at home or in your office with a clear and secure internet connection for verification.

Employment Verification: An email from the applicant’s official email ID is considered sufficient proof of official verification if the applicant is unable to provide the same; a physical verification is conducted at the applicant’s office premises to confirm availability. 

Overleveraged Customer: If your CIBIL score is above the required benchmark, your income is sufficient, and you are employed with a listed company, your credit card request may be declined if your credit history displays high existing obligations, such as credit card dues or EMI payments for loans. 

The credit card interest rate for dues ranges from 36% to 42% per annum. If you are unable to settle your credit card bills, the amount can increase due to the high interest rate involved. When the EMI for your loans exceeds 50% of your income and you have credit card outstanding balances, the risk of defaulting on repayments rises; consequently, your request for an additional card may be refused because you are overleveraged.

In Conclusion, your credit card comes with the responsibility of judicious usage and timely repayments. If you need a credit card, apply to the lender with a policy best suited to your usage. Hereafter, taking the time to understand the eligibility requirements you need to fulfil will go a long way in avoiding rejections.

FAQ for a Credit Card :