Last Updated on 09/01/2024 by Pardeep Garg
Whether you are a working professional or a young adult just stepping into the world of credit, you would have already considered applying for a credit card. Over the last few years, we have witnessed a widespread acceptance of cashless payments, and this has contributed to the surging popularity of these plastic cards. Financial institutions incentivise credit cardholders to make payments through credit cards by providing rewards and other benefits.
Additionally, incidental benefits of using credit cards include enhanced credit scores and building a respectable credit profile. These supplementary benefits make credit cards even more attractive, and with the credit line, you can purchase products and services without digging into your savings.
However, can you avail of these benefits by applying for a credit card if you earn around ₹15,000? Is there a minimum salary requirement? Let us take a closer look.
Low-Income Credit Card Application
We often come across credit card eligibility criteria that specify the applicant’s age, and the fact that the applicant should be employed. However, we seldom see the annual income thresholds. This can leave low-income earners in limbo. Different banks have different minimum income requirements, and most financial institutions require the applicant to make at least ₹15,000 per month. The minimum annual income for self-employed individuals is typically around ₹2 Lakh.
While such individuals may not be able to get their hands on popular credit cards with stellar benefits, banks offer a workaround in the form of secured credit cards. These cards are given against a fixed deposit, and this is intended to protect the bank from defaulters. You can open a fixed deposit and apply for a credit card against the deposit amount. Moreover, your credit card limit will generally be 75%-85% of the FD amount.
For example, if you deposit an amount of ₹2 Lakhs, you can obtain a credit card against the FD with a credit limit of ₹1.5 Lakhs.
Minimum Salary Requirement for Credit Card Application
As previously stated, different banks have different credit card eligibility requirements. For example, SBI requires salaried employees to make at least ₹18,000 per month to apply for a regular credit card, while HDFC caps the minimum monthly salary requirement at ₹12,000.
Banks have a minimum income mandate to ensure you can pay your credit card bills easily. Below are some of the popular entry-level credit cards and their minimum salary requirements.
| Credit Card Variant | Income Requirement |
| Canara Bank Global Card | Average quarterly balance of ₹ 1 Lakh |
| Axis Bank Insta Easy Card | Minimum Fixed Deposit of ₹ 20,000 |
| SBI SimplySAVE Credit Card | Up to ₹ 25,000 a month |
| YES Bank Prosperity Rewards Plus Credit Card | Up to ₹ 25,000 a month |
| Citibank Credit Card | Up to ₹ 20,000 a month |
| ICICI Platinum Chip credit card | Minimum annual income of ₹ 2.5 Lakhs |
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Factors that Affect Your Credit Card Eligibility
Apart from your income, various factors influence your credit card eligibility. Some of them have been highlighted below.
- Age – Certain issuers provide credit cards to individuals above 21 years of age, while others may offer credit cards to applicants who are 18 years old. Your age can also affect your chances of getting a credit card.
- Credit Score – Apart from your income, your credit score is the biggest deciding factor for your credit card eligibility. You can easily get an entry-level credit card with a decent credit score, and if you make around ₹18,000 per month.
- Existing Debt – If you are carrying a substantial debt, the credit card provider will not offer you an unsecured credit card. Thus, it is highly recommended that you keep your debt in check, and clear as much debt as possible before applying for a credit card.
- Location – Lastly, your geographical location might influence your chances of obtaining a credit card. This is because specific providers may not offer credit cards in certain cities. You should check your city’s eligibility before applying for any credit card.
Conclusion
Different banks have different minimum income requirements, and the minimum income requirement also differs from one card variant to the other. It is important that you compare the credit card eligibility criteria for different banks, and shortlist credit cards that you can obtain with relative ease.
Select credit card providers have a minimum salary requirement of ₹10,000 per month, but these credit cards may not offer you the perks you seek. In such situations, you can opt for a secured credit card and apply for a card against a fixed deposit. Ensure that you select a credit card that offers the maximum benefits and allows you to upgrade to a different card at a later date.
