How to Get a Credit Card as a 20-Year-Old in India

As a 20-year-old in India, securing a credit card can seem like a daunting task. However, with the right approach and meeting the eligibility criteria set by the card issuer, you can successfully obtain a credit card. This guide provides a comprehensive overview of the steps and options available to young adults in India looking to get their first credit card.

Eligibility Criteria for Credit Cards in India

There are several criteria that you need to meet to be eligible for a credit card in India. The primary criteria include:

Residency: Must be a resident of India or a Non-Resident Indian (NRI). Income: Must have a regular source of income from a salaried or self-employed profession. Bank Account: Must have a bank account and a good credit history.

These basic requirements ensure that the card issuer can monitor your financial behavior and repayment capacity.

Options for 20-Year-Olds

While meeting the general criteria is essential, there are specific credit card options designed for students and young adults. These include:

Secured Credit Cards

Secured credit cards are a good option for 20-year-olds who may not meet the standard eligibility criteria. These cards require a security deposit, which acts as collateral for the credit limit. This reduces the risk for the card issuer and makes it more likely for young adults to be approved.

Capital One Secured MasterCard: This card requires a security deposit as low as $49 for a credit limit of up to $200. The credit limit increases with the security deposit amount. Other Options: Some secured credit cards offer reward points on purchases, which can be redeemable for cash back or other benefits.

Student-Specific Credit Cards

Special credit cards are tailored to meet the needs of students, including lower fees and higher rewards. These cards often come with benefits such as discounted or free memberships to various student organizations or discounts on essential items.

Add-On Credit Cards

You can also consider add-on credit cards, which are linked to an existing primary credit card held by a parent or guardian. This option allows you to have a credit card without providing your own income or credit history, as you are linked to a trusted adult's financial stability.

Exploring Other Options

If you don't meet the traditional eligibility criteria, you can explore alternative options such as applying as an authorized user or a joint account holder:

Authorized User

As an authorized user, you can use the credit card without any legal responsibility to pay. Your income and credit history are not considered, but having a good credit history on the primary card can positively impact your financial status.

Joint Account Holder

As a joint account holder, you share both the rights and responsibilities of using the credit card. If you apply jointly, your income and credit history will be considered alongside the other applicant's. Even if you don't have a job, you can still be approved if the other applicant has sufficient income.

Comparing Features and Benefits

To find the best credit card for your needs, compare the features and benefits offered by different credit cards. You can do this online by visiting the banks' websites or using their mobile apps. Look for features such as:

Interest rates Annual fees Grace period Rewards and perks Minimum credit score required

Once you have compared the options, you can choose the credit card that best suits your financial situation and lifestyle.

Conclusion

Securing a credit card as a 20-year-old in India often involves meeting certain eligibility criteria. But there are alternative options available, such as secured credit cards, student-specific cards, and joint accounts, which can help you get a credit card even if you don't meet the traditional requirements. By understanding the eligibility criteria and exploring all available options, you can start building your credit history and financial stability.