Can You Get a Credit Card at 18 in India?
Turning 18 opens up new financial avenues, including the possibility of obtaining your first credit card. But can you actually get a credit card at 18 in India?
The answer is yes, but with specific eligibility criteria and often requiring a guarantor or a secured option. Many lenders offer entry-level credit cards designed for young adults entering the financial world.
Understanding Credit Card Eligibility for 18-Year-Olds
Lenders assess an applicant's creditworthiness. For individuals aged 18, this assessment differs significantly from older applicants.
Age and Income Requirements
The primary requirement is being a resident of India and being at least 18 years old. Unlike salaried individuals, most 18-year-olds may not have a stable, independent income. Lenders often consider:
Stable Income Source: While not always mandatory for secured cards, a verifiable income source (salary, business profit) strengthens the application. A minimum income threshold, often around ₹8,000-₹15,000 per month, might apply depending on the institution.
Student Status: Some banks offer student credit cards. These typically have lower credit limits and may require proof of enrollment in a recognized educational institution.
Guarantor Requirement: For unsecured credit cards, a co-applicant or guarantor with a good credit history and stable income is often necessary. This provides the lender with added security.
How does this affect your CIBIL score? A CIBIL score isn't usually a primary factor for a first-time 18-year-old applicant, but building a positive credit history later is crucial.
Types of Credit Cards Suitable for 18-Year-Olds
Given the typical financial profile of an 18-year-old, certain credit card types are more accessible and appropriate.
Secured Credit Cards
These cards require you to deposit a sum of money with the bank, which then becomes your credit limit. They are excellent for building credit history with minimal risk.
How they work: You deposit ₹10,000, and you get a credit card with a limit of ₹10,000 (or a percentage thereof).
Benefits: Easier approval, helps establish credit.
Example: SBI Card Un Lmt, ICICI creditor Stallion Credit Card.
Student Credit Cards
Designed for students, these often come with perks relevant to young individuals, like discounts on online shopping or movie tickets.
Features: Lower credit limits, potential for rewards, often require student ID and proof of address.
Eligibility: Must be a student aged 18+ and enrolled in a recognized college or university.
Add-on Credit Cards
If your parents have a credit card, you might be eligible for an add-on card linked to their account. This allows you to build a credit history under their established credit profile.
Responsibility: You are responsible for the spending on your add-on card, though the primary cardholder is ultimately liable.
Documentation and Application Process
Gathering the right documents is key to a smooth application.
Required Documents
You will typically need the following:
Proof of Identity: Aadhaar Card, PAN Card, Voter ID, Passport.
Proof of Address: Aadhaar Card, Utility Bills (electricity, phone), Passport.
Age Proof: Birth Certificate, Mark Sheet from Secondary School Examination, Passport.
Photographs: Recent passport-sized photographs.
Income Proof (if applicable): Salary slips, financial institution Statements, ITR.
Student Proof (for student cards): College ID card, Admission letter.
Steps to Apply
The application process is generally straightforward:
Research: Compare credit card options available for 18-year-olds on platforms like Six Finance.
Choose a Card: Select a card that best suits your needs and eligibility.
Fill Application Form: Complete the online or offline application form provided by the lender.
Submit Documents: Upload or submit the required documents.
Verification: The lender will verify your details. This might involve a phone call.
Approval and Issuance: Upon approval, the credit card will be dispatched to your registered address, usually within 7-15 working days.
Practically speaking, having a savings or salary account with the financial institution you are applying to can sometimes expedite the process.
Credit Card Comparison for Young Applicants
Choosing the right first credit card is important for establishing good financial habits. Here’s a look at two common options:
Feature | Secured Credit Card | Student Credit Card |
|---|---|---|
Primary Requirement | Cash Deposit | Student Status |
Credit Limit | Equal to Deposit (approx.) | Lower than standard cards |
Ease of Approval | High | Moderate |
Building Credit History | Excellent | Good |
Annual Fee | Often Nil or Low | Often Nil |
Risk for Borrower | Low (Deposit is safe) | Low (Low limit) |
Key Takeaways
Eligibility for credit cards at 18 in India primarily depends on age and a stable financial situation, often requiring a guarantor or a secured deposit.
Secured credit cards and student credit cards are the most accessible options for individuals aged 18.
A minimum income of ₹8,000-₹15,000 per month might be required for unsecured cards, but this varies by lender.
A CIBIL score is less critical for a first-time applicant but vital for future credit.
Key documents include identity, address, and age proof; student ID is needed for student cards.
Next Steps
Before applying, understand the terms and conditions, including annual fees, interest rates, and late payment charges. Does this sound like your situation? It's wise to start with a card that has a low credit limit to manage spending responsibly.
Disclaimer: This content is for educational purposes only and does not constitute personalized financial advice. Consult with a financial advisor for guidance tailored to your specific situation. Always verify details with the respective lender and refer to official regulatory guidelines.
Frequently Asked Questions
What is the minimum age to get a credit card in India?
The minimum age to apply for a credit card in India is 18 years. You must also be a resident of India and meet the specific eligibility criteria of the financial institution or financial institution.
What documents are needed for an 18-year-old to apply for a credit card?
Typically, you will need proof of identity (Aadhaar, PAN), proof of address, and proof of age. For student credit cards, a valid student ID is also required. Income proof may be needed for unsecured cards.
What happens if I miss an EMI payment on my first credit card?
Missing an EMI payment will incur late payment fees and increase the rate charged on your outstanding balance. It will also negatively impact your CIBIL score, making it harder to get credit in the future.
Most borrowers overlook this completely.
Are there any risks associated with getting a credit card at 18?
Yes, the primary risk is overspending and accumulating debt due to a lack of financial experience. High rate rates on unpaid balances can also lead to significant financial strain if not managed carefully.
What are alternatives to credit cards for an 18-year-old?
Alternatives include debit cards (linked directly to a creditor account), prepaid cards, and secured loans or fixed deposit-backed loans, which can help build credit history without the immediate risk of revolving debt.