How Do Banks Choose Who Gets A Credit Card?

The most essential tool for getting the best out of your savings is a credit card. The top credit cards in India provide a variety of perks, discounts, and cashbacks. Credit cards, however, are not readily authorised by banks. They use a range of factors to determine whether or not to grant the applicant a credit card. The Cibil Score of the applicant is very important to apply for a credit card. 

The following are some of the factors that banks consider when analysing whether or not credit card users are eligible:

Credit Scores 

A person’s credit history predicts how he or she manages his or her credit-related activities. A credit card is most probably to be issued to an applicant having a good credit history. The lending companies check your credit history and your yearly income to determine your repayment capacity and credit limit. Lenders analyse your repayment history, the length of your credit history, and the number of credit accounts on your report. Credit cards are more probable to be authorised for those with credit scores of 750 or above.


The type of job you are having in your current organisation will have a greater impact on whether or not your credit card application will be accepted. You can simply apply for a credit card if you have a stable job in a reputed organisation. Employees of lesser-known or smaller companies are not recommended because a company’s financial failure could have a negative impact on the repayment capacity of its employees. Because salaried workers have a more stable money flow than self-employed people, they have a greater probability of receiving a credit card in a hassle free manner.

Debt Utilization Ratio 

Your credit card provider will take your credit utilisation ratio into consideration. Your application’s acceptance may be compromised if your dues surpass the allowable amount. Maintaining a low debt-to-income ratio is crucial. If you have a low debt-to-income ratio, you can apply for a credit card. Use no more than 30-40% of your overall credit limit because this will lower your credit score. Also, keep an eye on any loans that you have guaranteed or co-borrowed, as any delay or default in their repayment will have a negative influence on your credit score.

Employment Stability 

Your current employment situation is also a consideration that influences your eligibility. Keeping your current work for more than a year greatly boosts your chances of getting a credit card. In other words, you’ll need consistent employment in order to obtain a credit card.


If you do not meet the monthly income criterion of your lender, your credit card application will not be approved, even if you fulfil all other eligibility requirements. Within the same lender, however, this criterion may vary based on the different card types. For cards having better advantages, the monthly income requirements are higher.


The applicant’s location has an impact on whether or not his card application is approved. Certain places within a bank’s service area are designated as ‘negative areas’ or ‘black-listed areas.’ Even if the applicants score highly on other factors, credit card applications submitted from such unfavourable or black-listed places may be refused.


To apply for a credit card, you must be minimum 18 years old. You can apply for a credit card if you are anyone under the age of eighteen. Cardholders with the benefit of add-on credit cards should be minimum 18 years old.

Final Thoughts

To obtain a credit card, you must consider a number of variables. If you want to apply for a credit card without any hassles, the factors listed above are the most important to be considered. The best credit cards in India come with several cashbacks and discounts. To receive them, though, you must meet the necessary qualifications. You can apply for a secured credit card if you are unable to apply for a credit card as you do not meet any of the eligibility requirements.

Secured credit cards can also help you rebuild or improve your CIBIL score. Because the bank finances the transactions until the due date, purchases made with credit cards are the same as taking out loans. Therefore, secured credit card transactions are considered into CIBIL score calculations. As a result, credit card applicants who have been turned down for a normal credit card due to a lack of or poor credit history can use these cards to enhance or develop their credit scores before applying for a regular credit card.

Read Also:- How Can I Calculate My Home Loan Interest According To My Salary?

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