Canara Bank Credit Card Eligibility

Check Canara Bank Credit Card Eligibility Criteria

Documents Required to Apply for a Canara Bank Credit Card

To own a credit card offered by Canara Bank, below are the documents required for availing a credit card.

1. Identity Proof: PAN Card, Aadhar Card, Driver's License, Passport, Voter's ID can be used as identity proof. 
2. Address Proof: Aadhaar card, Driver’s License, Passport, Utility Bill not more than 3 months old, Ration Card, Bank Account Statement can be used as address proof. 
3. Income Proof: Latest salary slips (not more than 3 months old), last three months bank statements or income tax returns (form 16) can be used as income proof. 
4. Multiple copies of passport-sized photographs. 

Factors That Affect Your Canara Bank Credit Card Eligibility

There are many factors that affect your Canara Bank credit card eligibility criteria. Some of the factors are as follows:

1. Age: When you apply for a credit card, lenders assess your creditworthiness. Lenders have difficulty in verifying the reliability of young applicants without an established credit history. It is advisable to generate a good credit history before submitting a credit card application.
2. The number of credit cards you own: Owning multiple credit cards with high amounts due on each card leads to a high credit utilisation ratio which has a negative impact on your credit card application.
3. Income: To get a credit card, you will be required to meet the income criteria set by the bank. Failing to do so might get your credit card application rejected. If you are planning on applying for a particular credit card, make sure you go through the brochure and check if you meet the minimum income requirement set by the bank. The minimum income requirement of the applicant differs from card to card. Always apply for a card that you are eligible for. 
4. Gross monthly debt: Lenders assess your debt to income ratio to check your creditworthiness by reviewing your current financial obligations. If your monthly debt amount is high, it will affect your credit card application negatively. Debt to Income ratio is calculated by dividing the total debt amount by the total monthly income. If you have a high DTI ratio, your credit card application may be rejected as it indicates that you may not be capable of paying your future payments.
5. Credit score: One of the first things a credit card provider will do as soon as you submit the application form is to check your credit score. A credit score may range anywhere between 300 to 900. All lenders prefer applicants with a high credit score of 750 and above. A low credit score indicates that you do not have a good credit history and decreases your creditworthiness. Before applying for a credit card, check your credit score. You can get a free copy of your credit report every year from each of the credit reporting agencies in India, namely Equifax, TransUnion, and Experian. If you have a low credit score, apply for a credit card only after your score has improved.
6. Recent delinquency on your credit report: If you have defaulted on any of your loans recently, it will bring your credit score down. Your credit card application may be rejected or you would not get a great credit card deal if you have a low credit score.
7. Multiple applications: While choosing the best credit card for you, it is very important to avoid making multiple hard inquiries for credit. If you apply for multiple credit cards you like, the lenders will be able to see all the hard enquiries made by you. This will make you look like a needy borrower. Therefore, while applying for a credit card, finalise on one card and apply for it. Avoid applying for another credit card while one credit card application is being processed.

Apart from the above factors, there are other factors that will affect your credit card eligibility. Some of them are:

1. A high outstanding amount on your existing credit cards
2. The number of credit cards you own
3. Charge-off or Settled remark on your credit report
4. Recent delinquencies
5. Lack of credit history
6. Job stability

How To Improve Your Canara Bank Credit Card Eligibility

There are several ways by which you can improve your eligibility for the Canara Bank Credit Card: 

1. Improve your credit score: Your credit score is one of the crucial factors that affect your credit card eligibility. If your application is rejected, consider improving your credit score and apply again later. You can improve your credit score by closing your existing loans, paying your bills on time, or clearing your existing credit card balance.
2. Do not default on your payments: When your credit card application is being processed, make sure you pay all your bills on time. Your credit card provider will be able to see if you default on your payments and might reject your application if you are not a prompt payer. This includes your phone bills, existing EMIs, and credit card payments.
3. Say no to multiple credit card applications: As mentioned earlier, avoid making multiple hard enquiries while you have submitted a credit card application with one bank.
4. Maintain a good Debt-to-Income ratio: One effective way of improving your eligibility is by consolidating and closing your debts to maintain a good debt to income ratio.
5. Low Credit Utilisaation Ratio: Maintaining good credit utilisation ratio and paying your bills on time on your existing credit cards shows a good credit history. Increase your repayment capacity by paying the total due amount on your credit card instead of the minimum due amount.
6. Increase Income Sources: Try to increase your income by reducing your total debt or increasing other sources of income. This acts as an effective way for improving your eligibility criteria. 

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