One of the biggest myths about Credit Cards is that they are only offered to individuals with a high income. However, there are numerous ways and options through which low-income individuals can apply for a Credit Card and enjoy its perks.
If you are exploring ways to secure a Credit Card and understand the Credit Card eligibility criteria for such cards, here is a blog to guide you through the process.
Features to look for in the best low-income Credit Card
Low or no annual fees
When you apply for a credit card as a low-income earner, saving your hard-earned money on unnecessarily high annual fees and other charges can make a significant difference. Thus, look for a card that has no hidden fees and low or no annual fees (levied after spending a minimum limit).
Offers and rewards
Reward programmes and offers are among the most attractive features of Credit Cards. Every rupee spent using your Credit Card can help you earn reward points or cashback.
Low interest rates
You are charged with interest when you do not clear your Credit Card dues within the stipulated time. In such a case, you have to pay a penalty, which is higher if the interest rate is higher. Thus, look for a card with a lower interest rate.
Credit Card Eligibility
Before you apply for a Credit Card, ensure that you go through the eligibility criteria thoroughly. This will help you make sure that your income is sufficient for the card you are applying for.
Best tips to secure a low-income Credit Card
Apply for an add-on card
If you already have a Credit Card or are related to an individual with a strong credit history and are eligible for add-on cards, apply for a Credit Card online. This will help you secure a card with the same credit limit as the primary cardholder and start building your credit score.
Apply for a Secured Credit Card
A secured Credit Card is typically backed by a Fixed Deposit held with the card issuer bank. This reduces the risk for the lender and makes it easier for low-income earners to fulfil Credit Card eligibility. Additionally, it helps build a credit history with a credit limit that supports your budget.
Credit Cards with Low-Income Programs
Most banks offer special Credit Cards to low-income individuals to support their financial needs and help them build a steady credit history. These cards often have flexible Credit Card eligibility criteria and low credit limits.
Maintain steady income or balance
If you have a low but steady income, highlight this when you apply for a Credit Card. You can do this by providing the issuer with proof of regular income, for example, salary slips, and securing an instant Credit Card online.
Maintain a good credit score
Regardless of the type of credit card you apply for, it is important to maintain a good credit score. This will help you secure better Credit Cards in the future and also help you secure loans and other benefits.
Conclusion
Low-income earners can enjoy the perks of owning a Credit Card and start their credit journey with ease. You can easily secure the best low-income credit card by looking for the features provided in this article. Additionally, by following our easy tips, you can apply for a Credit Card online and secure your financial future.