Credit Cards are now an integral part of our lives and it becomes difficult for many individuals to manage their finances without a credit card. However, getting a credit card is not as easy as it seems to be. There are some eligibility requirements that need to be fulfilled by individuals to get a credit card. These criteria may depend on various factors, including the applicant’s age, income, credit history, relationship with the bank, etc. When it seems to be difficult to get a credit card, the best alternative one can think of is a digital card. Digital Cards work very similar to credit cards, but you just don’t have a physical card in your hands. These cards also require some eligibility criteria to be fulfilled, but it is generally easier to get a digital card than to get a physical credit card.

Credit Card Eligibility vs Digital Card Eligibilty Criteria

In this article, we will discuss how credit cards are different from digital cards. Also, we will make you understand the difference between the eligibility criteria required for Credit Cards and for Digital Cards. Keep reading for further information:

Credit Cards and Their Eligibility Criteria

Let us first understand what credit cards are and what all requirements you need to fulfill to get a credit card:

What is a Credit Card?

A Credit Card is a financial tool that makes your purchases convenient by allowing you to pay for your spends later. These cards are widely accepted online as well as offline nowadays. Every credit card comes with a separate credit limit, which is the maximum amount that one can spend using their card in a particular billing cycle. The billing cycle is generally of 30 days, i.e, one month, and the bill is generated every month on the last date of a billing cycle. After that, the cardholders get 15-20 days to clear their dues. Therefore, you get up to 45-80 days to pay for your spends with a credit card.

Read More: Why Do You Need a Credit Card?

Eligibility Criteria

Though the eligibility requirements for a credit card may vary for different credit cards from different issuers, there are some basic requirements that you need to fulfill for almost every credit card. The following are some of these requirements:

– Age: Most card issuers offer credit cards to those whose age is 21 years or above. However, in the case of a few issuers, the minimum eligible age to get a primary credit card is 18 years. To get a supplementary or add-on credit card, the age of the applicant needs to be a minimum of 18 years old.
– Income: You should also have a stable source of income to get a credit card. Salaried, as well as self-employed people, can get a credit card, provided that they fulfill the income requirements specified by the respective banks. The card issuers check for the applicants’ income in order to ensure that the cardholders can repay the amount they spend on their cards.
– Credit Score: The credit score of an individual also plays an important role in the approval/rejection of his/her credit card application. The higher your credit score is, the higher are chances of your credit card application approval. The credit score requirements may vary from card to card. Premium credit cards generally require a higher credit score compared to basic or entry-level credit cards.

Digital Cards and Their Eligibility Criteria

Now, you might have understood everything about credit cards and their eligibility requirements. Let us have a look at digital cards and their eligibility criteria now:

What are Digital Cards?

Digital Cards can be considered the online version of physical credit cards. These are generally issued by non-banking financial institutions and not by banks that issue credit cards. Digital Cards work very similarly to credit cards, but the only difference here is that these are more suitable for online purchases and not for offline ones. The whole process from application to approval to issuance is online. Digital Cards generally have a zero annual fee, however, some of them might change a nominal membership fee. You get a credit limit in the case of digital cards as well and this limit is generally sufficient enough to make multiple transactions.

Eligibility Criteria

The eligibility criteria required for Digital Cards are not as strict as that for credit cards. The following are some of the basic eligibility requirements for digital cards:

– Age: The minimum age of the applicant needs to be 18 years (generally) in the case of Digital cards. It may vary from issuer to issuer, but most of them offer digital cards to individuals who are above 18 years of age.
Income: Income requirements are not very strict in the case of Digital cards. Even if you have a low income or no income at all, you might get approved for a digital card, provided that you fulfill the other requirements.
– Credit Score: You don’t really need a very good credit score to get approved for a digital card. people generally get digital cards to build their credit history from scratch. So, even if you don’t have a credit history, you can start building it using a digital card.

In the case of digital cards, the application process is fully online and hence, you can avoid the hassle of visiting the bank again and again. You can even activate your card online and start using it within a few seconds after it gets issued to you. However, the credit card application process takes a longer time.

Bottom Line

Credit Cards obviously are a better choice when we look for a card to keep with us on a long-term basis. But, Digital Cards can be great for those who have no credit history or a low credit score. If you are finding it difficult to get approved for a credit card, you should try getting a digital card first and build your credit history by using it in a responsible manner. Once you build a good credit score above 750, it will become easier for you to get approved for a credit card.

Write A Comment

Sign up for the Card Insider Weekly Newsletter!

By providing my email address, I agree to cardinsider.com’s  Privacy Policy

Thanks For Subscribing!

Please confirm the email address

Please verify your email address