What Is The Eligibility for Credit Cards

The credit card is a miniature loan that provides you with a fixed credit balance for a set period of time and allows you to use the amount for a variety of reasons while using the card. You must pay your credit card balance on or before the due date. There is no penalty on your bills until you pay your bill on time. This feature makes it less expensive than obtaining a loan. 

However, if you fail to pay by the due date or pay just the full amount outstanding, the credit card issuer will charge you the interest rate or penalize you. To qualify for a credit card, one must first understand the eligibility requirements. A  flurry of credit card applicants arrives at banks on a daily basis because of lucrative discounts, loyalty points, cashback, surcharge waivers, and even more.

Credit Card Eligibility Calculator -

One’s eligibility for using a credit card depends on factors such as income, credibility/credit limit, and age. Among the factors mentioned, income plays a vital role in determining a person’s credibility and plays an important role in determining the credit limit to be sanctioned. 

There are several factors you can check which may affect your eligibility to use a credit card -

Age :

Applicant’s age is an important factor in deciding your eligibility. The legal minimum age must be at least 18 years old. If you are under the age of 21 and want to take the card yourself, you must have a stable income or a second co-signer who can pay all the expenses of the card account. The first factor to consider when determining eligibility is age. 

Specify the credit limit :

This limit is set by a credit card company. To get a credit card, you need to have a stable source of income. In addition, the income standards of the different cards you apply for may be different. Some cards require a person to earn a certain amount of salary. If the card is held by a minor, the co-signer must have a permanent income. This enables you to pay the bill for the purchased goods. Even if you choose to have a secured credit card, obtaining a regular and stable income is crucial as eligibility for the program. 

You must have proof of fixed deposit of a certain value which you might have to show as a guarantee. You can more easily obtain credit card authorization from the lender. The credit report is the basis for obtaining the card for yourself. This is usually based on factors such as the number of cards you currently have, total cards you owe, any previous loans, payment history, outstanding payments, bankruptcy expenses, etc.

Credit score :

To get a credit card with bad or no credit, you need to use a secured credit card. The credit card company will use the money as collateral before providing you with the card and use the money if the cardholder fails to make repayments of dues.

Reduce past debt :

Any past outstanding debt can reduce your chances of obtaining a credit card. As you know, a credit card is a type of loan that a company takes and expects the repayment in the specified period. Past debts can become an obstacle to pay for newly withdrawn credit cards. This becomes a risk factor for lenders because borrowers may have difficulty returning the money and become debtors. When the amount of debt is high, the chance of owning your credit card decreases.

Co-signature :

If you are too young to qualify for a loan or have no income to pay your bills, you need to co-sign. When they receive a credit card to repay bad debts, they will also ask for a co-signer. If you do not pay, he/she(co-signer) will be responsible for paying your Credit card bill. You are also responsible for paying the balance amount. Allahabad Bank's credit card approval rate is the fastest in comparison to other lenders or other banks.

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