Your credit score plays a crucial role in shaping your financial journey. Whether applying for a credit card or a personal loan, this three-digit number can either open doors or close them. Other than meeting the minimum age for credit card eligibility in India, a strong credit score for credit card approval helps secure your application.
An excellent score above 700 can typically boost your chances of getting your chosen credit card. It is also crucial to understand what banks look for when reviewing applications, including credit scores. Read below to know how your credit score impacts approval and how to improve your chances.
Understanding Credit Score and Its Importance
Your credit score ranges from 300 to 900 and shows how well you have managed previous debt. The closer you are to 900, the more favourable your profile appears to card issuer. In India, credit scores are provided by bureaus like CIBIL, Equifax, and CRIF High Mark. They evaluate:
- Your payment history: It reflects whether you pay your bills and dues on time. Late payments can adversely impact your credit score.
- Total debt: A rising debt obligation in comparison to your total income determines your credit score. A lower utilisation ratio of your credit up to 30% keeps your credit score on track.
- Age of credit accounts: A longer credit history shows you have managed credit in the past responsibly. Issuing companies value an established track record of credit handling.
- Types of credit: Having a mix of credit cards, secured, and unsecured loans shows you can manage different types of credit.
- Recent credit behaviour: Too many card applications in a short time frame can hurt your credit score. Because most card applications run a hard enquiry, it shows you rely too much on credit and might depict you as credit-hungry.
Most issuers check your credit score to predict if you can repay your debts, and it matters more than it seems.
How Credit Score Affects Card Approvals
A strong credit score can open the door to better offers, while a lower score might limit your options. Here’s a criterion showing how credit scores work:
- 750 and above: An excellent score within this range enables fast approvals, high credit limits, and access to premium cards with top perks.
- 650 – 749: Good chances of approval, but the benefits and limits may be more standard. You might not get premium cards and benefits, but you can still get better card terms and limits.
- Below 650: Chances of approval are difficult, and you may qualify only for secured cards or basic options.
A higher score signals lower risk, so credit card issuers are more likely to offer better terms and flexibility.
What Credit Card Issuers in India Consider During Approval
Each card company has its own criteria, but most focus on your financial stability and credit habits. Here’s what top credit card providers in India prioritise when approving applications.
- One Credit Card
The One Credit Card gives you complete control through the OneCard App, and you can earn 5X rewards on your top two spending categories each month. It also offers zero joining or annual fees and flexible personal loans via OneCash.
Eligibility:
- Age: 18 years up to 60 years.
- Nationality: Indian resident, specifically within the locations where One Credit Card Services are available.
- Credit Score: 750 or more is recommended for quick approval.
- HDFC Bank Credit Card
HDFC Bank offers credit cards designed for dining, travel, and shopping, with rewarding cashback, points, and simple EMI plans.
Eligibility:
- Age: 21 or more for salaried, and up to 65 for self-employed.
- Income: Different cards suit different income levels, from moderate to higher earners.
- Credit Score: 750 or more is usually recommended.
- SBI Credit Card
SBI offers credit cards with low annual fees, and you get reward points on fuel, groceries, and online shopping.
Eligibility:
- Age: 21 to 70 years.
- Income: Regular income is essential, irrespective of whether you are salaried or self-employed.
- Credit Score: A Higher score boosts approval chances.
- ICICI Bank Credit Card
ICICI Bank credit cards reward your everyday spending with Payback points and offer exclusive discounts through brand partnerships.
Eligibility:
- Age: Some cards might require you to be above 18 years, whereas some will need 21 years minimum age.
- Income: Income requirements vary by card type.
- Credit Score: 750 or more is usually preferred.
- Axis Bank Credit Card
Axis Bank credit cards provide EDGE Rewards, free lounge access, and seamless card management through the Axis Mobile App.
Eligibility:
- Age: Between 18 and 70 years.
- Income: Some cards might have no specific income requirement, while some of them might have a fixed amount, such as a net income of ₹6 lakh p.a.
- Credit Score: 750 or more is preferred.
Steps to Boost Your Credit Score
Improving your credit score doesn’t have to be overwhelming. With simple habits, you can boost your score and control your financial future.
- Pay on time: A missed or delayed payment can adversely impact your score. You can choose to set up reminders or enable auto-pay to ensure you never miss a due date.
- Keep utilisation low: Try to keep your credit utilisation under 30%. It demonstrates to issuers that you’re managing your credit responsibly.
- Don’t apply for credit too often: Each card application in a short time frame can affect your score due to hard inquiries. Give time between each request so your score has a chance to bounce back.
- Check your credit report regularly: Mistakes or fraudulent credit taken in your name can harm your score. So, it is important to spot and correct them as soon as possible.
You must check the credit score and income requirement, along with the minimum age for credit card eligibility in India, for the specific issuer when applying for a credit card.
If you need a credit card which comes with fewer eligibility requirements, One Credit Card can be a smart pick with helpful features to manage your finances. The One Credit Card gives you 5X reward points on top two categories, virtual credit card, and GPS-based offers for deals nearby.
Along with this, you can manage rents, plan international trips with OneTrips, and even manage OTT subscriptions in a few clicks with the OneCard app. This OneCard App comes with more features like PIN resets and quick transaction confirmations for better security in a swipe. So why wait? Download the app from the official Play Store or App Store today to apply for the sleek and stylish One Credit Card!
jacky