Credit Card for Salaried Employees: Eligibility & Key Features to Consider
One of the key eligibility criteria for credit card approval is the income of the applicant. Although you can get supplementary card even when you are not earning, but if you wish to be a primary card holder then you should meet minimum income criteria set by the respective financial institution. In addition to this, there are other criteria as well, which are listed in the later part of this article.
What should salaried individual look for in a credit card:
Interest rate: This should be the first thing checked by a salaried person applying for the card. But if you think that you are honest to repay monthly bills on time and fully, then low/high interest rate should not bother you. In either case, always opt for a card with low interest. Because you never know, card repayments may get delayed because of financial uncertainties such as job loss, forgetting to pay the bill, and so on.
Reward Points and Cashbacks: Almost every card these days offer reward points when used for making purchases. But check where such cards are really accepted for redeeming the accumulated points. Typically card companies have tie-ups with select merchants (online/offline) only. And you cannot use the card at any other place to get reward points redeemed. So if merchants sell expensive items, then it may not make sense to get such card. If you are thinking of getting a card for regular use, then choose a one which offers reward points on grocery shopping.
Charges: Almost every bank charge processing fee which is fixed. Although this fee is small but still choose the one with no charge or low fee and save money.
Fees: Most of the banks charge joining and annual fee. And if card user spends certain amount in an year, then annual fee is waived off in the second year. Although this is tempting but at the same time, banks want users to spend as much as possible hoping that you will default and will pay interest.
Other eligibility requirements by the banks:
Credit Score: Once application is received, banks get your previous financial history from credit agency. And based on the details received, credit score is derived which is out of 900. If your score is above 750 then you stand a good chance to get the card approved.
Documents: In addition to the income mentioned, you will have to furnish the proof to validate your income. This includes monthly salary slip, income tax return, bank statement, offer letter of the employer, etc. This varies for each bank. Failure in producing these will result in application rejection.
Personal details: PAN card, Aadhaar card, residential address proof, etc.
These are the key criteria every individual applicant needs to have or furnish to the bank. Failure in submitting any of these, may result in application denial.
Here are few credit cards and minimum income required:
For monthly salary less than or equal to Rs. 10,000:
- Vijaya Bank – Visa Classic and Visa Global
- Syndicate Bank – Classic
- Indian Bank – Bharat Card
- Bank of India – India Card
- Jammu and Kashmir Bank – Empowerment
- Corporation Bank – Gold Card
- Canara Bank – Visa Classic and MasterCard Standard
For monthly salary less than or equal to Rs. 20,000:
- HDFC Bank – Freedom & Bharat Cashback
- Bank of India – Visa Gold & Visa Gold International
- Central Bank of India – MasterCard Titanium, Visa Gold, RuPay Platinum
- Indian Bank – Gold, Classic
- Syndicate Bank – Gold
- Axis Bank – Gold
- Andhra Bank – RuPay Platinum
- Corporation Bank – Gold
- Canara Bank – Gold