Step-by-step guide to checking your Credit Card eligibility before you apply

Before applying for a Credit Card, checking if you are eligible first is prudent. This saves you time, prevents you from falling into the risk of rejection, and increases your chances of getting approved. Since most people forget this step, there is always disappointment and distraught. Here is a simple guide to ensure you are well within your Credit Card eligibility criteria before actually applying:

Understand basic eligibility criteria

Despite slight differences between banks, some factors remain constant. These include:

• Age: Most banks require applicants to be at least 18 years old, although some may require an applicant to be at least 21.
• Income: There must be some stable source of income. Credit Card companies need to set a minimum earning amount for every card.
• Employment status: You should work full-time, part-time, or independently. Some cards are set up for students or homemakers with specific terms and conditions.
• Residency status: Most providers require you to be a country resident before you apply for a Credit Card.

1. Credit score checks

Your credit score is what decides your Credit Card application. The higher your score, the better your chances of being approved. Otherwise, you could face rejection if you hold a poor credit score.

1. Online eligibility checkers

All banks also have online tools through where you can check your Credit Card eligibility immediately. These usually perform a 'soft search', which does not affect your credit score. Once you enter all the details, such as your income and employment, the tool will inform you of the Credit Cards you can apply for.

Using these eligibility checkers, you can easily list your options and apply for a card that exactly suits your financial profile, thereby increasing your chance of getting approved.

1. Evaluate your financial situation

Before applying for your first card, ascertain your financial situation. Compute your income and expenses monthly, along with your active debts. If you apply for a card with a limit suitable to your financial capacity, you will manage repayments with less trouble.

1. Specific card requirements

Some Credit Cards, for instance, Premium or Reward Cards, demand more stringent eligibility. These include higher income levels or a better credit history. Ensure you review the minimum set qualifications for the card you intend to apply for.

Conclusion

Checking your Credit Card eligibility before applying smoother the process and improves your chances of approval. By understanding basic criteria, reviewing your credit score, and using online eligibility tools, you can confidently apply for a Credit Card, knowing that you have maximised your potential for success.