Those who have a problem in acquiring a credit card in India, especially when you don’t have a credit history… Worry not! Here are some basic tips to get a credit card with no credit history in India.
The bare minimum age, called to own a credit card in India, is 18 years. Many credit card issuers companies also place an upper limit for people- aged between 65-70 years.
All the companies more or less have the same eligibility norms for credit card holders. The minimum requirement for self- employed and salaried, to hold a basic credit card i.e. gold or silver, is Rs 1, 50,000-1, 80,000 per year. However, in case of self- employed candidates, company can set high eligibility benchmarks if he/she owes high rate of income.
Make Sure You Are Eligible
One must have a sufficient income to pay the credit balance, to get a hold on credit card. The amount, which you sign in for your credit card application, should be contributed by you alone. You can’t take the amount of any of family members to meet the criteria for credit card.
Prior-Qualification for a Credit Card
Some of the major companies claim pre-online qualification that examines you if you are suitable for the credit profile. The pre qualification is known as “soft credit checks”, denoting they won’t harm your credit score if someone examines your report. This evaluation does not give you direct approval or guarantee to get a hold off credit card. There are also other factors like income, occupation, and background that could reject your application for a credit card. If your application gets rejected, you will receive a mail with the specific reason of denial.
Get a Hold off Credit Card according to your Segment
In India, the scenario of credit card is mushrooming day- by- day. Every month, some banks issue a new credit card that caters to a segment of society. There are credit cards that cater especially to women, doctors, and professionals.For example:
- HDFC Bank- Woman’s Gold Credit Card
- ICICI Travel and Holiday Card
- HSBC Premium Woman Card
- Student Credit Card
Another popular segment is the student credit card that is yet to popularise in India. In the west, the concept of student card has already in trend. If you are undergoing studies or if you are a student, you may apply for student credit card. The cards are designed for college going students, who do not have high source of earning. As mentioned above, this segment is not prevalent in India. However, there are some banks that are trying to expand credit cards for students.
Here, students are supposed to open a fixed deposit account in the bank. The fixed deposit sum is used to issue the card. The credit limit is set according to the fixed amount in the bank.
SBI Advantages plus Card permits a credit limit up to 85% of the total fixed deposit amount. Also, it has a very low interest rate that is 1.99% (per month).
Be cautious in choosing your credit card as some encompass high interest rates.
Go For a Safe Credit Card
Safe credit cards are the best credit cards for those who can’t get a hold off a traditional credit card. Pick one which has low fees and one that has major credit bureaus. What’s special about secured credit card is they make us deposit a certain amount for security as a credit limit. Secured credit cards vary in their fees. Some charge fee while some charge low fee. If do not have enough income for security credit, you can save some amount for next few months. Choose your credit limit according to your pockets!
Get a Hold off Co-Signer
When you can’t get hold on a credit card by your own, get a hold of someone’s who has a good credit account. You can bring someone who is well efficient with a good credit to sanction the credit card for you. One major disadvantage of a Co- Signer is that he/she keeps an eye on your accounts such as finances, purchases, and limits. If you are not careful with your credit card, the co-signer’s credit too gets affected. Be cautious when you use a joint credit card!
Some Essential Points to be Noted
- Avoid applying for many credit card applications.
- If you fail to acquire student credit card, go for retail store credit card.
- Pick credit card according to your profile.
- Find out, if there are any credit cards that guarantee approval, looking into your credit score.
- A prepaid card is beneficial for those who do not have an access to credit card.