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  • What is the eligible income limit for credit cards?

    Want to apply for a credit card but unsure about the eligibility criteria of income? Our bank experts will let you know the requisite income you need to be having to be eligible for applying for a credit card.

    I want to use a credit card. As of today, I have not used any credit card but my salary is very low. What is the eligible salary limit to get the credit card? Which bank's credit card is having the most benefits? Is there any bank which provides a credit card for an individual with a monthly salary between Rs.15000-20000?
  • Answers

    5 Answers found.
  • There are two types of credit cards in the market.

    The first type of credit card is based on the collateral that customer keeps in bank. This collateral could be FD, locker or other investment inside the bank.

    In second type of credit card, it is based on the individuals lifestyle and the ability to handle the credit. So the value is decided by your ability to pay back the money to the bank or credit card company.

    For the person with the salary of 15K to 20K, the solution for the credit card would be on the basis of FD or the other collateral. That is also the safest way and the limit is based on 80% of the value of FD.

    This is the most easy way to get the credit card. You don't even need any form of approval for having this card. All you need instead is some collateral on which bank could offer you some card.

    Almost every bank offers such credit cards on fixed deposits. You can learn more about them on the credit card offering page.

    Here's the link for Credit card against FD from ICICI:

    Another link for credit card against FD from AXIS bank:

    Other banks such as SBI, Kotak, too have this feature.

  • The credit card practically has no bearing on your income. Though the banks will ask you for your income details and consider your eligibility based on it. If you tend to have enough bank balance even with low salary, your bank may consider your application favourably. What is needed for getting a credit card is how the bank is convinced of your repayment capabilities. If you have a good saving habits, you have more chance of getting a credit card.
    Another method of getting a credit card is to provide a collateral security. Most common collateral security that can be used to avail credit card is having a Fixed Deposit with the bank. You will get a credit card with a credit limit of Upto 80% of your fixed deposit. For the exact formality and the credit limit, you need to visit the website of respective banks.
    As for your query for the credit card with better benefits, well - almost all of them are similar. They are governed by same set of rules. As such, there won't be much of a difference. However, based on my own experience I would advice you to to opt for a nationalised bank for obvious reasons. Nationalised banks are traditionally known to be considerate. I have a good experience with State Bank of India.

    Live....and Let Live!

  • For State Bank of India, you need to have a minimum balance of Rs40,000 in your account. You should maintain this balance and there will be cutting for handling credit cards.

    You can also try virtual credit card by entro pay which serves the purpose well.

  • Generally, if your take-home salary(the final salary you get after deductions like PF etc) is 20 thousand or above, you can easily get a credit card.

    However, for professionals, if you have a salary account with the same bank you want the credit card from, then your take-home can be 18 thousand or above.

    But if you want a credit card from a bank where you dont't have an account, then the take home should be above 20 thousand rupees.

    And your credit limit is generally around two times of your take-home salary. When I was getting 18 thousand, I applied for a HDFC credit card as I have a salary account with them, I got approved and my credit limit was 40 thousand.

    Then after few months, if your salary increases your credit card score is good, then the limit may be increased on your request.

    Your credit card score depends on how much purchases you make and how you make your payments monthly. If you regularly make purchases and pay the dues monthly without fail, you will have a good credit score.

    And credit cards have a interest free cycle of 50 days. For example, you might get a credit cycle of from 13th of a month to 2nd of the next month. In this period, for the purchases you make there will be no interest, if you pay the due back by 2nd, then it is just the amount you used to purchase and no interest.

    For example, if I make a purchases for 30 thousand out of 40 thousand limit, by the due date, if I pay the 30 thousand back, I don't have to pay any extra amount as interest. But if you don't pay it by the due date, then the interest will be calculated from the 51st day.

    You can make use of this 50 days as in this time period you can use money in your hand for other purposes. Simply, this will be like getting some money from your friend for emergency and pay it back after some days without interest.

    As for as I know, no credit card is good though they may seem attractive with offers and cash backs.

    My only advice to you will be make your purchases within the 50 days cycle and pay it back by the 50th day. And if any cashback or offers come, use them too with in that 50 days period.

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