Getting a Credit Card Approval is a difficult task especially if you are from a low-income group, student, housewife or self-employed. One of my colleague working in private company has applied for a credit card. He submitted all necessary documents along with the credit card application. He was very keen to use a credit card. However, his application got rejected. He was upset and looking for ways to get credit card approval.
If your credit card application is rejected or if you are applying for a new credit card here are tips and strategy that you can use to get fast credit card approval. Before taking a look at tips & strategy let’s look at major benefits of credit cards.
Also Read –15 Best Credit Cards in India 2019
Benefits of Credit Cards
#1 Free Credit Period
A first benefit of holding a credit card is the free credit period. Credit Card Company gives free credit period from 20-50 days. During this period credit card companies do not charge any interest to the cardholder. This means you can use money without paying extra interest.
#2 Credit Card Rewards
Another benefit associated with credit care is credit card reward points. Every credit card company offers reward points for doing shopping with a credit card online and offline. You can redeem reward points for a gift, shopping voucher etc.
#3 Cashback Benefits
Cashback is one of the best ways to save money. Cashback means getting money back. Some credit card offers cash back benefit on specific product and category. The benefit of cashback is generally fixed. However, new cashback offers are announced by credit card companies regularly.
#4 Travel Miles
A travel credit card is a special category that allows you to earn travel miles. The travel miles can be redeemed for an air ticket discount. To redeem air miles, you should have sufficient air miles as a balance.
#5 Discount on Online Shopping
Online websites offer big discounts on online shopping. The discount is offered on various categories such as grocery, movie, food, travel etc. Some offers are available for the long term and some offers are given during limited period like festival sale etc.
Also Read – 10 Best Credit Cards in India to Save Money
Credit Card Approval Strategy
A credit card company evaluate potential credit card customers based on multiple parameters. Few important parameters for getting credit card approval are –
# Your Salary/Income
# Your Past Credit History/Credit Score
# Your Relationship with Bank
# Credit Card Type (Secured Credit Card)
# Saving Bank account & Transaction History
Let’s try to understand these parameters in detail.
#1 Your Income level is Important for credit card approval
When you apply for the credit card you need to provide your income details in the application form. In addition to income detail, you need to provide your age, city, take home, type of employment in the application form. All these factors determine your chance of getting a credit card.
Out of all these factors, the income level is the most important factor for consideration. Your income determines your capability to repay your dues in a timely manner.
There is no predefined salary/income limit for issuing a credit card. However, in general you should have at least a salary/income above Rs.20000 per month to avail basic credit card. Higher the income level better is the chance of getting approval. Someone earning Rs.80000 per month is more eligible compared to a person earning Rs.25000 per month.
Make sure to check minimum income eligibility criteria before applying for the credit card. You need to submit income proof and latest ITR copy for income proof.
#2 Your Past Credit History or Credit Score
Another important factor of consideration when it comes to credit card approval is credit score and credit history. CIBIL credit report contains your credit score and credit history. It contains detail of loan taken by you including repayment and default history. Make sure to check your credit report once before applying for credit card. Checking credit score online is easy and free.
#3 Your Relationship with Bank
Your relationship with bank matters a lot when it comes to getting credit card approval. This means if you have an existing salary account with a bank or fixed deposit it becomes relatively easy to get a credit card.
This is because the bank can easily extract information about you. The longer and deeper association with the bank increases the chance of getting a credit card from that bank.
#4 Credit Card Type (Secured Credit Card)
There are many banks which would give you a credit card against fixed deposits. These are secured credit cards with a credit limit equal to the amount of fixed deposit you have with the bank. This arrangement has dual benefits. You get a credit card and you get a chance to improve your credit history by paying your dues in time. This is the best way to get credit card approval.
The minimum fixed deposit required for the secured credit card is Rs.20000. No income proof is required to get a secured credit card against a fixed deposit.
#5 Your Saving Bank account & Transaction History
Your saving bank account & bank transaction history also matters for getting a credit card. If you are maintaining minimum average balance and doing frequent transactions, your chance of getting approval of credit card is high.
Credit Card Approval Tips
- You should check minimum income eligibility conditions before applying for credit card.
- If you don’t have repayment history you should opt for secured credit card.
- It is a good idea to apply for the credit card at a bank where you are holding a salary account.
- If your profession is risky such as journalist, police, lawyer your application is likely to get rejected. In such a case, it is advisable to opt for a secured credit card.
- Don’t lie about your income level.
- If you are self-employed working from home than also it is recommended to give different work address.
- Don’t keep on applying for the same credit card if you get rejected once. Give a gap of at least 6 months, preferably 12 months.
Best Credit Cards for Salaried
If you are salaried and planning to apply for the credit card. Here is a list of few best credit cards for salaried –
- Standard Chartered Titanium
- Standard Chartered Manhattan Credit Card
- SBI Simply Save Card
- ICICI Coral Credit Card
Best Credit Card for Self Employed and Businessmen
If you are businessmen and planning to apply for the credit card recommended credit card list is given below.
- SBI Corporate Platinum Card
- My Business Credit Card Axis Bank
- Citibank Premier Miles
Select the credit card based on your requirements.
Getting a credit card approval is not difficult process if your credit score is good and you have all documents.
Follow the tips and strategies given above to get credit card approval.
If you are facing any challenges for credit card approval, feel free to share it in the comment section given below.