Credit cards are undoubtedly one of the most necessary items which every person should have. But looking at it from another side, not every person can actually get credit cards and that is the exact reason why every day thousands of credit card applications get rejected in every single bank.
Only having a job or having a business will not let you get a credit card. In fact, every bank has their own policies and requirements for issuing any card to anyone. But if you don’t meet the requirements for getting your credit card, don’t feel sad about it. There’s a good news for you and it says that in the market, there are many credit cards for low salaries circulating as well.
Premium credit cards are widely circulated in the whole world but only few people know about credit cards for low salary. People who have very average monthly income can also avail credit cards which are basically called credit cards for low salary.
In fact, there are many banks which offer credit cards at as low salary as Rs 6,000 per month and absolutely anyone with that income or higher can avail those. Of course, they will not have as a good feature has the premium credit cards but for basic uses with not too high limit, these are the best things.
Necessities of credit cards
A recent survey has revealed that every 2 out of 10 Americans are using their credit cards even for paying absolute basic necessities. It has definitely decreased when in comparison with previous surveys, it is still a number which is worth noting. This however proves that many people use credit cards for some obvious reasons and they indeed find it good enough. With that being noted, there are many necessities of the credit cards you should know:
1. Cashback offers
If you are loyal to your credit card, it is going to be loyal back to you. What I mean is, if you pay off your bill every month, a cash back credit card can be an awesome way to get more for your money because a percentage of the amount you spend from that credit card will be returned to you once in a year. It may be via cash payment or reduction in your bill, depending upon the offers given by your bank.
2. Schemes of reward
There are many credit cards which offer many kinds of rewards. For every amount of money you spend, a specific amount of points will be added to you reward cards which can be redeemed anytime after. It can help you get amazing discounts anytime if you are too fond of using your credit cards and collecting too many points.
3. Great credit score is good
When you borrow too much and do not make repayments on time, it will completely damage your credit score. And if you have never borrowed money before, potential lenders will find it difficult to judge whether you are a good credit risk or not. But if you borrow good amount of money and repay it within time, your credit score will increase. The many times you do, the more will be your credit score and a good credit score will term you as a trustworthy person, thus giving you more offers and benefits.
4. Protection from theft
If you are fond of carrying cash everywhere you go, chances are, if you lose your wallet, you will never get that cash back. But if you are carrying credit cards and it is not lost or stolen for your negligence, you will not be liable for the fraudulent use of your credit card.
5. Credit card-only transactions
This is probably the most usual benefit of credit cards for low salary. Renting a car, confirming our Hotel reservation or even EMI from your favorite online shopping website will require you to transact using only credit cards. Most of the middle class people would actually like to buy things on EMI and that’s a reason my credit cards for low salary is something which is very useful for many people. It can even also be useful for covering company expenses without leaving yourself short of anything.
How to avail credit cards for low salary?
Income is never the sole factor in your qualifications for a credit card and there are many other things which a bank sees. In the United States of America, there is no minimum income requirement for credit card applicants.
In order to check your eligibility for availing credit cards for low salary, it will basically check the Debt to Income ratio. Debt to Income ratio is actually the comparison of your total monthly debt payments and your total monthly income. The issuers will look after the figure and then determine how much you can afford to pay and decide how much your limit for the credit card will be. That includes becoming able to make payments on a fully maxed-out credit card.
So, first of all, you have to learn about your credit status which includes the most important factor, as mentioned above, called debt to income ratio. There are many creditors who serve credit cards for low salary which you have to apply for. You will just have to know your details such as debt to income ratio, credit score and you have to have an accurate credit report. You have to opt for a partially secured credit card.
After that, choose the bank which you want to have a credit card of and fill in all your information. You can apply for the credit card online easily, as well. You have to give the proof of income and a statement copy of bank of the previous 6 months. You can send those documents via an agent or courier it. If you are eligible and the verification is done, you will receive your credit card in 3 or 4 weeks. They will issue the credit card and then send it to your address without you having to go anywhere.
Remember, it is very important to sign at the back of your credit card. It will actually serve the purpose of authentication when your card is stolen or lost, in case.