4 Habits of Individuals with Good Credit History

A credit report is a report card that financial institutions access to whenever any individual applies for credit.

And credit report contains history of how you’ve behaved when you’ve been granted credit: whether you’ve paid it on time, whether you’ve been slow to pay it back, and how many you’ve acquired since the first credit was granted. This, along with other variables, allows financial institutions to know whether or not you are “eligible” and up to what amount to be a beneficiary of a loan.

So, that’s why if you’ve been denied any credit, it’s because this report doesn’t give you good marks to your financial habits. That’s why it’s important to keep a good record, whether you need a credit card, a student loan or credit for your own business.

So, here is a list of those characteristics and habits that people with good credit report have. When you start applying this in your day to day life, you will have good credit report.

Make timely repayment

People who have a very good credit score and credit history are always mindful of payment deadlines. While it’s obvious that when you have a debt you always have to pay it, many people believe that doing so after the due date doesn’t have a problem.

But here’s the key: You have to pay on time, even before the payment deadline. For this, its best to establish an agreement with your bank so that the date is near money gets automatically debited from your bank account. If you do not have money to pay, its worth to negotiate with the bank because deadlines can always be extended.

A delay of a few days doesn’t really change your score too much. But if you want to have a good report, it’s always best to cancel before the deadline.

Never spend beyond the limit 

Those with good scores never use the maximum capacity of their credits. For example, in the case of a card that has an available credit of $4,000, the ideal is never to use it completely. Not just one, but all the credit products you’ve bought.

The lower the use of that limit, the more beneficial it will be to the individual, indicating that he or she can have self-control of his or her needs while not being afraid to borrow a little.

Use credit wisely

Of course, in order to have a credit history you have to use financial products that allow you to build credit. Among them, credit cards and consumer finance are the most common. Those with good scores get it and use them wisely and properly. They know when it’s worth doing it, on what products and services, and discard when it’s not.

That means there’s no fear of getting into debt. Having a good credit history opens the doors for getting access to credit in the future for many personal and professional needs.

Never become guarantors

They rarely lend themselves to being guarantors or co-debtors because they know the high risk it can pose not only to their own finances but also to their income. Those with good credit history are therefore not afraid to say “no” to friends or family because they prefer to maintain good relationship and a good report.

Never change financial products frequently

Although the conditions of your finance may change, when you frequently open or close financial products; but by doing this you are eliminating the record of good behavior you had with the bureaus and financial institutions. Of course, this doesn’t mean you can’t do it or you should not do it, but frequent changes should be avoided as much as possible.

This also means you are a “problematic customer” for the financial institutions as you are not loyal so they won’t offer you different products and not bet on you.

13 Credit Cards with No Job Verification

Everyone must be hearing the rising NPAs resulting in losses to the financial institutions in India. Although businesses are biggest contributors to the NPAs, it doesn’t mean that defaults by single individuals are not counted.

Even a small default adds upto the loss. This is the reason banks are taking cautious approach and have become strict when granting any type of credit i.e. personal loan, credit card, car loan, etc to individuals. Here strict means eligibility criteria to avail finance has become strict.

Financial institutions now are using innovative ways to evaluate creditworthiness of each and every credit application and prevent frauds. And one such data analysed by lenders is the online behavior.

This includes (to name a few):

  • What you tweet on Twitter
  • Share or like on Facebook
  • What you buy online
  • Online utility bill payments and others.

In addition to this financial institutions will continue with the traditionally done credit bureau checks which primarily gives scores to individuals based on their credit worthiness.

However one eligibility factor that would always remain crucial is the applicant’s company (i.e. where he/she works) and income whether salaried or self employed. Low income means lower chances of credit card approval and vice-versa. So even if you were employed earlier but are currently unemployed, the chances of getting credit card will be low. This is because card issuers won’t be able to verify the applicant’s job and salary.

So how to get credit card with no job verification?

There are two easy options for such individuals to get credit card:

  • Against FD
  • Add-on card

Against Fixed Deposit

This is one of the best option to get credit card with no job verification. You can open fixed deposit with minimum amount as specified by the banks and get credit card against it. This is nothing but a secured credit card.

Here is the table showing list of credit cards against FD:

Sr. No.Credit Card NameMinimum Fixed Deposit Amount RequiredIssuing Bank
1SignatureRs. 10,000Andhra Bank
2PaylessRs. 15,000Development Credit Bank
3AspireRs. 16,000Central Bank
4CoralRs. 20,000ICICI Bank
5Instant PlatinumRs. 20,000ICICI Bank
6Insta EasyRs. 20,000Axis Bank
7AssureRs. 25,000Bank of Baroda
8UsecureRs. 25,000Union Bank of India
9UnnatiRs. 25,000State Bank of India
10SolarisRs. 25,000Kotak Mahindra Bank
11Aqua GoldRs. 25,000Kotak Mahindra Bank
12Advantage PlusRs. 25,000State Bank of India
13GalaxiaRs. 1,00,000Kotak Mahindra Bank

Some of the advantages of cards against FD are:

  • Banks do not check whether you are employed i.e. no job verification or income proof required. So even retired senior citizens, housewives, students can apply for the card.
  • There is no credit score checked
  • Documents required are minimum
  • User gets insurance cover as well


However with advantages comes disadvantages. Few of them are as follows:

  • Money kept in the account gets locked.
  • In case of payment default, bank will deduct the money from the FD account.

Add-on card or Supplementary Card

Another option to get credit card with no job verification is add-on card. If any of your family member (children, mother, father or spouse) owns a card and has a good repayment history, then he/she can apply for a credit card in your name. In this case too, there is no credit history check done for primary card holder. This is kind of joint account but in this case credit limit given to the primary owner gets shared with supplementary card owner. Benefits such as usage, reward points, etc.

List of financial institutions offering add-on credit card in India:

  • ICICI Bank
  • HDFC Bank
  • Citibank
  • Axis Bank
  • Kotak Mahindra Bank and many others.

Since primary account is used for any dues and credit reporting, it is the responsibility of the add-on card owner to use the card honestly. Any poor usage will impact primary card owner and all the dues and interest rate will have to be paid by him/her. In addition to this, credit score of primary owner will be affected negatively.

Migrant in USA? Auto Insurance Important Information

Being a migrant in the United States and wishing to have a car insurance may initially have some complications when compared to the citizens or who have been in the country for quite some time. Complications further increase especially if you do not have adequate knowledge and no one to advice.

One of the main points focuses on solving the previous validation of the record as a driver of the foreign insured. Remember that validating a good driving record could assure the interested party better rates in their insurance policy.

In order to have an auto insurance you must consider some important aspects. Factors such as age, civil condition, car model, accumulated traffic fines, among others are of vital importance for insurance companies. And, of course, another variable to take into account is referred to the driving history of the driver or also known as “Record”. A driver’s record contains important information for insurers and competent authorities.

The record of the policy includes, amongst other data, accidents that have occurred with the insured at the wheel, suspensions of the driver’s license that have occurred, fines, and so on. This document can be requested through the offices of the Secretary of State concerned. Another way of application is online and finally through the company that will manage the vehicle insurance.

But, if you are a immigrant driver in USA, what are the steps to follow?

Remember that if you do not have driving record in the USA, the odds of having a cheap car insurance are low. So it is recommended you to follow the below recommendations.

You can apply for the so-called “Driving Record” that may include an additional cost due to the procedure to be performed. Although you must’ve been an excellent driver in your own country. However when it comes to United States, you need to prove it and the only solution is through the previous record.

In this procedure, the new insurer will require legally certified copies of the last policies contracted in the countries of origin and the details of their activity, as well as an official record of such history.

Each document must be duly translated into English, and you must also provide your identity documents, such as your passport.

Finally, an excellent advice for any migrant who wishes to buy an automobile insurance in the United States is to go to companies specialized in processing insurance where you can have the certainty of finding the cheapest car insurance, tailored to your needs and with a complete advice and processing necessary.

Credit Card Debt Consolidation: Pros & Cons

Debt negotiation is a program to help you eliminate credit card debt, personal loans and any other unsecured debt.

Many times credit card debt gets out of control and action is needed to avoid over-indebtedness. A common repayment strategy is debt consolidation.

Through a consolidation you get a loan to pay off your credit card bills and you are responsible for paying off a single loan. This strategy is not ideal for everyone, so learn about the pros and cons to help you make the best decision.


1.- Combine several payments into one. It allows you to organize yourself and the convenience of making a single monthly payment.

2.- Get lower interest rates. If you have good credit, most options for consolidating your debt, whether a personal loan or a home equity line of credit, offer you lower interest rates than credit cards.

3.- Reduce monthly payments. If the interest on your new loan is lower, your monthly payment may well be lower. In addition, if you pay on time and consistently, you will avoid any penalties for late payments, exceeding your credit limit.

4.- Pay 100% to your creditors. It would pay off your creditors and preserve a positive payment history, if the accounts have been in good standing with your creditor.


1.- It may cost you more money in the long run. Despite getting reduced interest and payments, if the repayment period is long, you may end up paying more at the end of the loan tenure. Also, depending on the consolidation method you use, your total debt may increase with the addition of loan fees or fees for transferring balances from one card to another.

2.- You can go further into debt. Either out of necessity or will, if you use the cards you already paid off again, you would face paying off the original debt plus additional new debt.

3.- It can be more expensive. If you consolidate your cards with a secured loan, such as a home equity line of credit, defaulting on your payments puts you at risk of losing your home or any other valuable possessions you have used to secure your loan. You should avoid putting at risk things, whose total value is greater than the amount of your credit cards.

4. – Negative effects on your credit. Consolidating debt can affect your credit score by changing your credit score. You do not eliminate debt, but combine it and it affects the balance of debt and available credit. If you close your paid credit cards, your score also suffers.

5. Some companies charge high service costs hidden in their contract, so consumers must sign up for a nonprofit program with a BBB-accredited company.


Bankruptcy can help you prevent foreclosure, no other program can do this. Hypothetically speaking, if a consumer enrolls in a debt negotiation or debt management program, consumers will increase their cash flow by helping them pay their mortgage by preventing foreclosure. Debt settlement programs can help you prevent foreclosure this way.

Bankruptcy can help prevent foreclosure, no other program can do this.

Bankruptcy can prevent wage garnishment.

Creditor harassment will stop after you file for bankruptcy, while with debt settlement it does not stop immediately.

Certain types of debts will be discharged with bankruptcy but this does not occur with a debt management or debt negotiation program.

Many times a consolidation remedies a symptom, but does not solve a major financial problem. Before determining if this strategy is right for you, explore the causes of your debt and assess other repayment options such as a Debt Management Program, self-payment strategies or working directly with your creditors.

USA: Danger Signs of Credit Card Debt

Do your debts keep you awake at night? You’re not the only one. Americans have a combined debt of about $2.15 million, mostly due to credit cards, according to the U.S. Federal Reserve.

But how do you recognize how serious your problem is?

The first thing you need to do is learn to recognize the signs. Take paper and pencil and answer yes or no to the following questions:

  • Do you pay only the minimum amount required for your credit cards?
  • Are you often late with your bills?
  • Are you over the limit on your credit cards?
  • Do you experience anxiety and stress due to your debts?

If you answered yes to one or more of these questions, you may benefit from a debt consolidation plan.

The debt consolidation program is a plan in which your debts are restructured into a single monthly payment. Interest rates and late payment penalties can be drastically reduced in most cases.

After a careful analysis of your financial situation, which is completely free, debt management consultants negotiate with your creditors to lower your monthly payments, interest charges and late payment penalties.

Danger Signs of Credit Card Debt

The vast majority of people are unaware of the danger signs of credit card debt.

Here are some of the most common dangerous situations so you can avoid a major financial crisis.

  • Your credit cards are maxed out and you only pay the minimum amount required. Failure to fully cover your account can lead to severe finance charges. If you miss a payment, you will be charged late fees in installments.
  • An increasing amount of income is allocated to pay off your debts. Only 10% to 15% of the income you bring home must be used to pay off debts taken on credit.
  • You use one card to pay for another. Don’t be fooled into avoiding your debts. All you are doing is borrowing more money.
  • You decide that your next doctor’s visit should wait. If you’re risking your health for money, it’s time to re-evaluate your credit situation.
  • Bills are paid with money that was intended for other things.
  • The money borrowed from credit cards is used for items that were previously paid for with cash.
  • Savings are used to pay current bills.

3 Steps to Prevent Financial Situation Going from Bad to Worse

Are you receiving payment intimidation notices from creditors? Then this article is for you. In either case, everyone should read this article for leading a better financial life.

Many are those who at some point in their lives face a financial crisis. Whether the problem is because of medical emergency in the family or personal illness, loss of employment or business, or simply by spending more.

In reality, the important thing is to prevent your financial situation from going from bad to worse. If you’re going through a financial storm, consider the following options:

  • Realistic budgeting
  • Credit counseling by a reputable organization
  • Debt consolidation or bankruptcy

How will you know which is the best alternative for you? This answer will depend on the level of your debt, your degree of discipline, and your future prospects.


The first step in taking control of your financial situation is to make a realistic assessment of all your income and all the money you spend. Begin by listing all of your sources of income. Then, list all your fixed expenses and those that are the same every month such as your mortgage payment, rent, car payments or insurance premiums.

Then make a list of variable expenses, such as entertainment, recreation or clothing. Writing down all of your expenses, even those that seem insignificant, can be a great help in tracking your spending schedule, identifying those that are needed, and prioritizing the rest.

The goal is to ensure that you can meet all the basic requirements: housing, food, health care, insurance and education.

Contact your creditors

If you have difficulty paying your debts, contact your creditor immediately. Let them know why you are struggling to pay and try to agree on modifications to your payment plan that will allow for a more manageable level of repayment. Don’t wait for your accounts to be referred to a debt collection agency. At that point, creditors will have lost faith in you.

Dealing with debt collectors

The Fair Debt Collections Practices Act (FDCPA), which deals with fair and just collection of debts, is the federal law that stipulates the manner and times or occasions when the debt collector must contact you. A debt collector may not call you before 8 a.m. or after 9 p.m.; nor may he call you at work if your employer disapproves of such calls. Collectors may not harass you, make false statements, or use unfair practices in the exercise of debt collection. Debt collectors must follow a written request from you to stop future contacts.

Essential Steps to Get Out of Credit Card Debt

Many people find themselves in a very high level of debt with some in a truly desperate situation.

When the problem is already serious, the solution is unfortunately not simple and requires many sacrifices.

But it also allows us to learn, and not fall back into the trap of minimum payments.

Any plan to get out of debt implies that one can pay at least the minimum monthly payment on all of their credit cards, and a little bit more. If you really can’t, then you have to take additional steps, which we’ll discuss below:

The steps to follow are:

Recognize and face:

The first step in solving any problem is to recognize it.

You should gather the last statements of all the credit cards and add up the balances to see what the total debt is.

This way, you will have calculated the size of the debt and have a complete picture of the situation you are in.

Hide cards:

Your primary goal should now be to resolve the debt.

Therefore, you must at all cost avoid using credit cards. Do not carry them with you and do not have them at hand.

It is better to keep them in a safe place, to avoid any temptation, and get used to paying everything in cash for the moment.

Prepare a plan of action:

First, you must write down on paper the total amount of net monthly income you receive, i.e. tax-free.

Next, your fixed expenses: Rent or mortgage payment, telephone, gas, electricity, schools, cable television, etc.

Now, you have to estimate other expenses, such as: supermarket, transportation, and so on.

With this, you will be able to see what expenses can be cut, for example, pay television, cell phones or the telephone line of the house, among other things. If your problem is very serious then you need to cut back on everything that possible and won’t impact day to day living.

Remember that in order to get out of debt problem as soon as possible, you must allocate as much money as possible for the debt payment.

Finally, one should subtract one’s expenses from one’s income to see how much money is available for the creditors. This amount should be enough to cover the minimum payment on all of your cards and an amount to make additional payments. Otherwise, it is very clear that you live outside your possibilities. So you must remedy this situation as soon as possible to avoid further problems.

Read more: Know your rights when facing debt collectors.

List and order:

Make a list of what you owe on the credit cards, as follows: Name of the Card, Total Balance (Debt), Interest Rate, Minimum Payment and Payment Date.

Then, sort them taking the criteria of putting first the one with the highest interest rate, and so on.

Prioritize payments:

You should pay the minimum balance on all the cards, to avoid falling into arrears, and all the additional amount left for this purpose, you should assign it to the card that charges you the highest interest rate. This allows to pay the most expensive debt first.

What if you don’t have enough for the minimum?

If such a condition arise, then the problem is severe, which usually requires solutions that are usually very hard. What can be done in such cases, to implement the above plan, is:

Selling an asset: For example, car, or some family jewel.

Pawning is not an option in this case because it is usually a short-term loan, with high interest rates (sometimes similar to those charged by credit cards), and where you are given a fraction of the cost of an item that could be lost, if this loan can’t be repaid.

Additional money:

If you have savings, you will probably have to use them to repay a portion of your loans, since the interest rate on these loans is much higher than the rate you receive anywhere for your investments.

Or, perhaps get a second job that provides an additional source of income.

As a last resort, you may be able to get a loan from your family or the company where you work that will help you pay off your debts to financial institutions in full, so that you can keep only one loan at a much lower interest rate.

Debt Collectors: What they Can & Cannot Do, Debtors Rights

If you use credit cards, owe money on a personal loan, or are paying a mortgage on a house, you technically become a “debtor”. And if you delay paying your creditors, or make a mistake in your accounts, you may be contacted by a “debt collector”.

You should know that in any of these situations, a law called the Fair Debt Collection Practices Act (FDCPA) that deals with impartial debt collection requires debt collectors to treat you fairly and prohibits certain methods of debt collection. Of course, the law does not remove any legitimate debt you owe.

What kinds of debts are covered?

Personal, family, and household debts are covered by the act. This includes money owed for the purchase of a car, for medical care, or for account charges.

Who is considered a debt collector?

A debt collector is anyone who regularly collects debt owed to others. This includes attorneys who collect debts on a regular basis.

How can a debt collector contact you?

A debt collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector cannot contact you during inconvenient hours or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector may also not contact you at work if he or she knows that your employer disapproves of such contacts.

Can you prevent a debt collector from contacting you?

You can prevent a debt collector from contacting you by writing a letter to the collector telling him or her to stop. Once the debt collector receives your letter, he or she cannot contact you again except to tell you that there will be no more contacts or to notify you that the debt collector or creditor intends to take any specific action. Please keep in mind, however, that sending such a letter to a debt collector does not eliminate the legit debt if you do owe it. You may still be sued by the debt collector or your original creditor.

Can a debt collector contact anyone about your debt?

If you have an attorney, instead of contacting you, the debt collector should contact the attorney. If you do not have an attorney, a debt collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors are usually prohibited from contacting third parties more than once. In most cases, the collector cannot tell anyone other than you, your spouse, or your attorney that you owe money.

What should the debt collector tell you about the debt?

Within five days of being contacted, the debt collector must send you a written notice telling you the amount you owe; the name of the creditor to whom you owe the money; and what action to take if you believe you do not owe the money.

Can a debt collector continue to contact you if you believe you do not owe the money?

A debt collector cannot contact you if, within 30 days after you receive the written notice, you send the collection agency a letter stating that you do not owe the money. However, a collector may resume collection activities if they send you proof of the debt, such as a copy of the bill for the amount owed.

What types of debt collection practices are prohibited?

Harassment: Debt collectors may not harass, oppress, or abuse you or any third party they contact.

For example, debt collectors cannot:

  • Use threats of violence or harm;
  • Publish a list of consumers who refuse to pay their debts (except for a credit bureau);
  • Using obscene or profane language; or
  • Repeatedly using the telephone to annoy someone;
  • Debt collectors may not use any false or misleading statement when collecting a debt.

For example, debt collectors cannot:

  • Falsely suggest that they are lawyers or government representatives;
  • Falsely suggest that you have committed a crime;
  • Misrepresenting that they operate or work for a department or credit bureau;
  • Misrepresent the amount of your debt;
  • Indicate that the papers sent to you are legal forms when they are not; or
  • Indicate that the papers sent to you are not legal forms when they are

Debt collectors cannot state that either:

  • You will be arrested if you do not pay your debt;
  • Seize, garnish, seize, or sell your property or wages, unless the collection agency or creditor intends to do so, and it is legal to do so; or
  • Actions, such as a lawsuit, will be taken against you when such action cannot legally be taken, or when they do not intend to take such action.

Debt collectors may not:

  • Give false credit information about you to anyone, including a credit bureau;
  • Send you anything that looks like an official court or government agency document when it is not; or
  • Use a false name
  • Debt collectors cannot engage in unfair practices when trying to collect a debt.

For example, debt collectors cannot:

  • Collect any amount greater than the amount of your debt, unless your state law permits a similar charge;
  • Depositing a deferred check prematurely;
  • Use deception to make you accept collect calls or paid telegrams;
  • Take or threaten to take your property unless this can be done legally;
  • Contact you through postcards.

What control do you have over the payment of debts?

If you have more than one debt, any payment you make should be applied to the debt you indicate. A debt collector cannot apply a payment to any debt that you believe you do not owe.

What can you do if you believe a debt collector violated the law?

You have the right to sue a debt collector in state or federal court within one year from the date the law was violated. If you win, you can recover money from the damages you suffered plus an additional amount. Court costs and attorney’s fees may also be recovered. A group of people can also sue a debt collector and recover money for damages, or one percent of the collector’s net worth, whichever is less.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to your state Attorney General’s office and to the Federal Trade Commission. Many states have their own debt collection laws, and your state Attorney General’s office can help you determine your rights.

Unsecured Personal Loan in USA: Types, Benefits, Risks

The difference between personal loans and other types of loans is that personal loans are granted without collateral and therefore involve great financial risk for the lending institution. Hence, not all banks grant them in the United States. On the other hand, banks that grant such loans do so under strict compliance with a series of requirements, such as those set forth by Bank of America.

Unsecured loans comprise of three types:

a) Personal loans, those given to individuals for their own use and purpose.

b) Unsecured loans, which are granted to businesses, corporations, and other business entities responsible for repaying the debt.

c) Unsecured loan with guarantor granted to a business. Here the company is responsible for the repayment of the loan, but in case the company does not pay the debt, the guarantor is responsible.

Under what perspective should personal lending be considered in United States?

The granting of these loans involves opposite scenarios for the bank and for the beneficiary.

For the financial institution, this means that it does not have a guarantee or element of value available for attachment in the event of insolvency in payment by the debtor; whereas for the debtor it means a business where it has very little to lose. Hence, unsecured loans could be thought of as a bad or risky investment for banks; however, they offer certain advantages because not all loans are the same.

First, there is the case of an unsecured loan where it is necessary for the borrower to make all the payment payments as an individual individual, but there are also those types of loans called unsecured business loans where the borrower is not a natural person but a company, and finally there is an unsecured loan with personal guarantee, in which there is a guarantee, not by the borrower who in this case is a company, but by a person who assumes the status of guarantor to repay the loan in full.

Benefits & risks of personal lending to financial institutions

Of course, these personal loans offer extensive benefits to the borrower and a great deal of risk for the lender, so the latter grants loan on the condition that the borrower meets a number of requirements, making them practically a kind of reward for customer loyalty.

One of the fundamental requirements imposed by banks such as Bank of America to grant access to these loans is the credit score by the borrower. Because this kind of indicator provides an idea of the borrower’s ability to repay.

In addition, by assuming greater risk with this type of lending, financial institutions tend to set a higher interest rate, just as they set a lower credit line limit.

Similarly, the restrictions or penalties on these loans are more susceptible than other loans, increasing the possibility of loan denial.

On the other hand, certain banks in USA impose fines and penalties on those who try to consolidate their debts with a personal loan.

Because these types of loans are riskier for any lending institution, they carry a higher interest rate and have lower credit line limits than other secured loans. Also, bank cannot offer you debt consolidation loans if they think you are likely to get into debt trouble.

What purpose such loans can be used for?

The use of unsecured personal loans varies, because they can be used to consolidate other debts, such as credit cards and other high-interest debts, by combining these debts into one more manageable and lower-interest loan, and can also be used to pay for education or health care expenses.

These unsecured loans contain higher risks for the financial institution because there is no collateral to back up the debt in case the loan is in default. As a result, they may be more difficult to obtain, carry a higher interest rate, and have lower limits, usually as low as US$5,000.

Credit Card for Pensioners: 4 Ways to Get – Low Income Cards, Against FD

In the golden days of life i.e. after retirement, as the individual moves from working life to a new life, the biggest challenge is meeting the day to day need as it was before retirement. Although pensioners get money every month in the form of pension, the amount may not be always sufficient to meet day to day expenses, especially when they have dependent.

Personal loan for pensioner (central or state government or defense personnel) is a good option but the interest rate is very high. So other solution to arrange money is credit card.

But can a pensioner get credit card in India?

The answer is YES.

There are four ways, a pensioner can get credit card as follows:

  1. Especially designed for pensioners
  2. Normal card – If pensioner continues to work after retirement, then they can apply for such cards.
  3. Card against securities i.e. fixed deposit
  4. Supplementary card

We’ll explore each of the above options:

Credit Card for Pensioners

At present, there is only one card for pensioners in India offered by Bank of India. This credit card exclusively designed for pensioners has credit limit which is three times the monthly pension earned. For e.g. if the pension is Rs. 25,000 per month, then the credit limit offered would be between Rs. 70,000 – Rs. 75,000.

There is no joining fee on the card and the billing cycle is from the 16th of current month to the 15th of next month.

Credit Card for Low Salaried Pensioners

Every one wants to continue working after retirement and keep earning money and also keep themselves busy. If after retirement, the pensioner continues to work or is self employed offering consulting service or does small business, then they can apply for cards at various banks in India. However if the income is low, then they can apply at following banks offering cards to low income earners.

Sr. NoCredit Card NameMinimum Monthly Income RequiredIssuing Bank
1Visa Classic for Self EmployedRs. 4,166Vijaya Bank
2Visa Classic for SalariedRs. 5,000Vijaya Bank
3Classic for SalariedRs. 5,000Syndicate Bank
4Classic for Senior CitizenRs. 5,000Syndicate Bank
5BharatRs. 6,000Indian Bank
6India CardRs. 6,250Bank of India
7Empowerment for SalariedRs. 6,666Jammu and Kashmir Bank
8Canara Visa Classic / MasterCard StandardRs. 8,333Canara Bank
9Visa Global for Self EmployedRs. 8,333Vijaya Bank
10Classic for Self EmployedRs. 8,333Syndicate Bank
11Gold for Senior CitizenRs. 10,000Corporation Bank
12Visa Global for SalariedRs. 10,000Vijaya Bank

The reason card issuers ask for income is to evaluate the credit worthiness of the applicant in order to prevent defaults. However if the pensioner is not using the card for the first time and has used the card earlier and has good track record then chances of getting a card increases.

Read more: Keep working try these best jobs after retirement.

Against Fixed Deposit

Fixed deposit is one the safest investment product for risk averse investors. If pensioner has any ongoing FD account with the bank, then they can get credit card against fixed deposit or they can open a new FD account and apply for the card. The credit limit offered is 80% – 85% of the FD amount kept with the bank.

For e.g. if an individual keeps Rs. 1,00,000 in FD and takes card against it, then the monthly credit limit offered would be in the range of Rs. 80,000 – Rs 85,000.

The table below shows cards offered by various banks against FD:

Sr. NoCredit Card NameMinimum Fixed Deposit Amount RequiredCard Issuer
1SignatureRs. 10,000Andhra Bank
2PaylessRs. 15,000Development Credit Bank
3AspireRs. 16,000Central Bank
4CoralRs. 20,000ICICI Bank
5Instant PlatinumRs. 20,000ICICI Bank
6Insta EasyRs. 20,000Axis Bank
7AssureRs. 25,000Bank of Baroda
8UsecureRs. 25,000Union Bank of India
9UnnatiRs. 25,000State Bank of India
10SolarisRs. 25,000Kotak Mahindra Bank
11Aqua GoldRs. 25,000Kotak Mahindra Bank
12Advantage PlusRs. 25,000State Bank of India
13GalaxiaRs. 1,00,000Kotak Mahindra Bank

There are many advantages of taking card against FD and few of the key benefits are:

  1. No credit history check
  2. Low interest rate
  3. Very minimal documentation
  4. No income criteria so no need to provide income related documents such as salary slip, IT returns, etc.

Check out ways to earn extra income after retirement.

Supplementary Card

Also called as add-on card, if any family member (pensioner’s wife/husband, son, daughter) owns a credit card then they can apply for a add-on card. However the criteria to apply for such card is that, the credit score of the primary card owner should be good and he/she should not have taken add-on card already. But make sure, to make repayment on-time and fully against the secondary card. Otherwise, credit score of both primary and secondary card owner gets affected negatively.

Although a pensioner continues to receive money in the form of pension the money may not always be sufficient to meet their financial objectives such as foreign trip, buying electronic accessories, etc. Although this can be achieved through their personal savings but this money should ideally be reserved for emergency medical expenses, marriage of children, or others.

Owning credit card after retirement has many benefits:

  1. Pensioner can build credit history
  2. Not rely on personal savings or others for money
  3. By making regular payments and using the card honestly, they can avail card with higher limit or loan in the future.

Tips for pensioners to achieve good credit score

Getting any type of credit after retirement is difficult compared to when you are earning. But if pensioner succeeds to get any type of credit (e.g. personal loan, car loan, credit card, etc.) then he/she should take this as an opportunity to build a good credit score. Here are some of the basic tips to achieve a good credit score:

  1. Never miss any payment. Always pay before the due date.
  2. Pay the bills fully
  3. Never spend above the credit limit
  4. Never use your credit card for cash withdrawal at ATMs
  5. Do not frequently apply at too many banks for the credit
  6. Make sure to ask your lender, whether repayment and other financial transaction data is updated at credit rating agencies. This is extremely important when you apply for any other type of credit in the future with the same or different bank.