Documents Needed for a ₹20,000 Salary Credit Card

When choosing a credit card, it’s important to take note of the fees and charges that may apply. Understanding these costs will help you make an informed decision and choose a credit card that aligns with your financial goals and spending habits.

If you're earning a monthly salary of ₹20,000, a credit card can be a valuable financial tool. Several banks in India offer credit cards specifically designed for individuals with this income level, providing access to a range of benefits such as cashback, rewards, and the ability to build your credit history. These cards are tailored to be affordable and manageable, even on modest incomes, making them an attractive option for many.

To qualify for a credit card with a salary of ₹20,000, you typically need to meet the following:

• Age: Most banks require applicants to be between 21 and 60 years old.
• Income: You must have a steady monthly income of ₹20,000 or more.
• Credit Score: A decent CIBIL score is necessary to demonstrate responsible credit behaviour and increase your chances of approval.
• Employment Status: Banks prefer applicants with a stable job or regular income source.

To apply for a credit card, you'll need to submit certain documents to the bank. Here's a table of the common documents required:

When considering a credit card, it's essential to understand the associated fees:

• Joining Fees: Some cards have no joining fees, while others may charge nominal amounts, typically ranging from ₹499 to ₹1,499.
• Annual Fees: Many cards for low-income earners have zero or low annual fees, often waived if certain spending thresholds are met.
• Interest Rates: These cards may have higher interest rates compared to premium cards, typically ranging from 42% to 52.86% per annum.

If you're earning a monthly salary of ₹20,000 and wish to apply for a credit card, you'll be pleased to know that it's entirely possible. While banks consider various factors beyond just income, such as your credit score, employment stability and debt-to-income ratio, there are several steps you can take to increase your chances of approval:

1. Check Eligibility: Ensure that your income meets the minimum requirement set by most banks, which typically falls between ₹15,000 and ₹25,000 for basic credit cards.
2. Select the Right Card: Opt for low-income credit cards specifically designed for individuals with modest salaries. Popular options include the IDFC FIRST Bank Select, SBI Cashback and IDFC FIRST Bank Wow cards.
3. Maintain a Good Credit Score: Focus on building and maintaining a credit score above 700 to 750, as this significantly improves your chances of approval.
4. Gather Required Documents: Prepare the necessary documents, such as identity proof (PAN card, Aadhaar card), address proof (utility bills, rental agreement), income proof (salary slips) and a passport-sized photograph.
5. Apply Online or Offline: Submit your application either through the bank's website or by visiting a local branch. Some banks even offer instant approval processes.
6. Consider Secured Credit Cards: If you face difficulties due to a lower income, explore the option of secured credit cards, which require a fixed deposit and can help build your credit score over time.

By following these steps and partnering with a reliable financial institution like Airtel Finance, you can successfully apply for a credit card that suits your needs and financial situation.