A card’s eligibility varies between providers. The fundamental conditions, however, are:
- You have to be 18 years old, at least.
- You have to have a stable income source to cover the bills, whether working or self-employed (minimum income bracket differs from one card to another).
- It will help if you have a decent credit score (Preferably 700 and above)
Required Documents for Credit Cards
The paperwork criteria often differ between issuers; but primary lenders ask the following:
Evidence of Identification and Signature- PAN card, driving license, Voter ID card, Aadhaar card, Government Employee’s id card.
Address Verification- Bank account, mortgage deal, ID card, ration card, visas, driving license bill, or property tax.
Age Verification: Voter ID Card, Class 10th certificate, Birth Certificate, Aadhaar Card, orLIC Pension Order or Receipt scheme.
Salaried Individual evidence of income: pay slips not less than three months, six-month pay account bank statement.
Proof of income for self-employed: latest IT income statements and other accounting records approved with evidence for company stability. Evidence for self-employed businesspeople.
Credit Cards fee & Charges
The significant credit card fee you need to pay is the joining fee & annual fee. However, you may hear about charges as follows:
Duplicate Statement charges: A set amount fee is applicable where the consumer demands a physical credit card statement.
Late Payment Charge: There is a penalty to be charged in addition to the applicable interest charges. The cardholder is not liable for paying this amount in due time.
Cash Withdrawal Charges: In the cardholder’s event using its credit card to make cash transactions from the ATM, the cash withdrawal interest shall be paid.
GST: Any purchases incurred with a credit card are paid with the goods and services tax (GST). The transaction’s value, including the interest, fees, and additional fees, depends on GST.
ECS or Cheque Return Charge: There is a set fee to be paid if ECS malfunction or cheque bounces by the cardholder.
Foreign Currency Transactions: For purchases made on foreign soil, this payment is a fixed percentage of the transaction value.
Over draft/limit Fee: If the expenses, payment owed to cardholders surpass their credit limit, the cardholder shall incur an additional amount over & above.
Credit Card Bill & its Payments
Every month on a specific date, your bank sends a credit card statement or bill. You find the due date in it. It’s the day by which you need to pay the bill. Delaying in it will hamper your credit score and invite late payment fees & interest charges.
You notice the outstanding amount as minimum amount due & the total amount due. The total amount due is the entire outstanding till date you owe to the bank. While you can pay minimum amount due if you aren’t in the position to pay total amount due. However, paying minimum amount due will invite additional charges in the form of interest. Therefore, always try to pay the total amount due to prevent additional interest.
You will also make a late charge on your credit cards. Your credit report has a ‘Days Past Due’ feature, which displays your credit account number of days after the time it was due. It leads to a low credit score, which makes it hard for you in the future to receive loans. Any essential requirements for your payment by credit card are:
Total Amount Due: It’s the total outstanding you’re entitled to pay to your bank.
Minimum Amount Due: Minimum payment to avoid late payment charges.
Billing Date: The date when your bank generates the credit card statement.
Billing Cycle: The period between two credit card statement dates.
Due Date: The date before which you must pay your credit card bill.
Reward Point Balance: Refers to the total number of loyalty or rewards points you have.
