Mumbai: Many people wonder whether holding an account with a bank is compulsory to get its credit card. The answer is no. Several banks issue credit cards to applicants who do not maintain an account.
What Banks Check?
Before approving an application, banks assess the applicant’s income, occupation, repayment capacity and credit score. If the applicant meets the lender’s eligibility conditions and can pay bills on time, the bank may issue a credit card without requiring an existing account.
Credit Card Against Fixed Deposit
Some applicants may have neither a bank account nor any credit history. In such cases, certain banks offer a secured credit card against a fixed deposit. The deposit acts as collateral and reduces the bank’s risk.
This helps first-time borrowers build credit. Regular use and timely repayment may improve their credit score while allowing them to access card benefits.
How To Apply?
Applicants usually need to submit identity, address and income documents. These may include Aadhaar, PAN, address proof, salary slips, bank statements or income-tax returns. Documentation, income limits and eligibility rules differ across banks and card categories.
Applicants should compare products and verify all conditions before applying. Approval remains subject to the bank’s credit assessment.
Credit Card Versus Prepaid Card
A prepaid card is not a substitute for a credit card. Users first load their own money onto a prepaid card and can spend only the available balance.
A credit card, however, provides a borrowing limit sanctioned by the issuer. Responsible use and timely payments can support a stronger credit score. Prepaid card usage has no effect on credit history.
Use Credit Responsibly
Cardholders should spend only what they can repay by the due date. Delayed or partial payments may attract interest and late charges.
Before choosing a card, applicants should check the interest rate, annual fee, late-payment fee, cash-withdrawal charges and other costs. Used carefully, a credit card can provide convenience and emergency financial support.
