Understanding the Minimum Salary for a Credit Card

Posted on Monday, September 23rd, 2024 | By IndusInd Bank

If used the right way, a credit card can be a powerful financial tool. While convenience is its primary feature, it also offers other benefits, such as high rewards and an opportunity to build your credit score. If planned well, it can also act as a safety net for emergencies. 

However, many believe that a high income is necessary to apply and get approved for a credit card. While a steady income is essential, the minimum salary for credit card eligibility can often be lower than you might think. 

Read on to learn more. 

What is the Minimum Salary Requirement for Credit Cards?

The requirement of a minimum salary for credit cards varies from one bank to another.  Several factors, such as the type of credit card you are applying for, etc., also influenced it.  

• In general, banks in India require applicants to have a minimum monthly income of around ₹20,000. Having a minimum income of this amount will make you eligible for a low-salary credit card. 

• Premium cards that come with exclusive benefits tend to have a higher requirement.

• The reason banks have this criterion is to ensure the applicant is financially stable. The applicant should have enough funds to manage credit card payments without defaulting.

• It is important to note that meeting the minimum salary for credit card eligibility requirement does not lead to guaranteed approval. Banks also look at your overall financial health, credit history, and other factors before making a final decision.

What to Know About Credit Cards with a Low Salary Requirement?

Are you thinking of applying for a low-salary credit card? Here are some points to consider:

·         Lower Credit Limits

These credit cards usually come with a lower credit limit to help you avoid overspending.

·         Considerable Benefits

Low-salary cards also offer benefits like cashback, reward points, complimentary experiences, and discounts on specific purchases.

·         Credit Building Opportunity

Low salary credit cards are a great way to build or improve your credit history. However, you must use the card with care and make timely payments.

·         Higher Interest Rates

These cards may have higher interest rates compared to premium cards. Hence, it is important to pay off balances as soon as you can.

·         Suitable for Modest Incomes

These cards are designed for those who meet the requirement of a minimum salary for a credit card. Individuals of all income levels can enjoy the convenience and security of these credit cards without having a high salary.

·         Good for Starting Out

If you are new to credit, a low-salary credit card can be an excellent starting point. It can help to build your credit profile and gain access to more premium cards in the future.

Also Read: First-Time Credit Card Applicant- 10 Things to Know Before Applying for Your First Credit Card

Other Eligibility Criteria for Credit Cards

Banks consider several other factors when evaluating your application, along with the minimum salary for credit card eligibility:

1.      Age

Most banks require applicants to be between 21 and 75 years old.

2.      Employment Status

Banks prefer applicants with a stable job and a steady income source. Self-employed individuals are also eligible to apply. However, they might need to provide additional documentation, such as proof of business income.

3.      Credit Score

Along with the requirement of a minimum salary for a credit card, another aspect that is equally crucial to have is a good credit score. A score above 700-750 is considered good and increases your chances of getting approved for a credit card. 

4.      Existing Debt

Banks also look at your existing debt obligations, such as personal loans or other credit cards. This helps them ensure you can manage additional credit without financial strain.

5.      Residential Stability

Some banks may also consider how long you have been residing at your current address. This duration is a sign of your stability and may mean a lower risk of default.

Conclusion

Securing a credit card does not always require a high income. Learning the minimum salary for credit card requirements and exploring options like low-salary credit cards can help you access their convenience and benefits with ease.

If you are looking to apply for a credit card that suits your income and lifestyle, IndusInd Bank offers a range of options tailored to your needs. 

From credit cards for those with low salaries to premium options, IndusInd Bank ensures that there is a card for everyone. What’s more? Each card comes with a unique set of benefits such as reward points, cashback offers, complimentary movie tickets, experiences to help you upgrade your lifestyle, and more.

Explore your options and apply now for a credit card online!

Disclaimer: The information provided in this article is generic and for informational purposes only. It is not a substitute for specific advice in your circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.