India is a rapidly developing country. The financial landscape in the nation is continuously evolving and creating healthy ground for obtaining a credit card even without traditional income documentation.
Now, irrespective of being a student, homemaker or freelancer there are several banks that provide for credit card options that don’t require you to submit a salary slip. This write-up is dedicated towards discussing five prudent methods that can help you secure a credit card without income proof.
1. Credit cards that are secured against fixed deposits
Several banks including the likes of HDFC Bank, ICICI Bank provide secured credit cards. These credit cards are backed by fixed deposits (FDs). Therefore, by pledging an FD, often starting with just ₹10,000 you can help yourself obtain a credit card with a limit.
This limit generally ranges from 75% to 90% of the entire fixed deposits (FDs) value. The minimum fixed deposit amount against which a secured credit card is issued by HDFC Bank is ₹15,000. Now, this approach not only helps in facilitating credit access but also ensures that you are able build a reputable credit history and boost your overall credit score.
Note: The terms and conditions stated above are illustrative in nature. For the updated terms and conditions on credit cards based on fixed deposits consider reaching out to your respective financial institution.
2. Applying for add-on credit cards
This is another important method through which you can avail a credit card without any income proof. Here, if one of your family members holds a primary credit card, you can then request for an add-on credit card. This new credit card will be linked to their account only.
Banks and financial institutions such as HDFC Bank, Axis Bank, Kotak Bank etc., offer this facility, allowing spouses, children or even parents to benefit from your credit usage. That too without individual income proof or any evidence of the add on credit card user earning money.
3. Credit cards for students
This segment of credit cards is designed to facilitate college students with their spending needs. These cards often do not require income proof but come with high interest rates on repayment and slightly stringent terms.
Banks such as ICICI Bank, Axis Bank among others issue such student credit cards based on academic enrollment and existing bank relationships. This also helps young adults start, understand and grow their credit journey early on in their lives.
4. Submission of alternative income documentation sources
Now if you are someone who is self-employed, a freelancer or running a small business, then banks may accept alternative income documents such as: bank statements, tax returns, form 16 to evaluate your creditworthiness and credit history and to help you secure a credit card without having a salary slip or consistent financial inflow.
Regular and consistent money flows for years from sources such as rental yield income or freelance work can also provide support for your credit card application.
5. By providing a guarantor or a co-signer
Now if you can ensure that you are able to provide a guarantor or a co-signer for your credit card application then even this can be immensely beneficial for you in the long run. Just that you need to ensure that the guarantor or co-signer has a consistently stable income and a clean credit history that can enhance your credit card approval chances immensely.
This joint responsibility provides the banks with the assurance that you along with your guarantor are serious about making repayments within the stipulated time. Thus making it a feasible option for those without direct income proof such as salary slips.
Hence, by exploring these options individuals who are without traditional income documentation can still access and make the most of the benefits of credit cards, fostering financial stability and inclusion.
Such simple methods also go a long way in boosting an individual’s credit profile and enhancing their overall credit score. The focus eventually needs to be put on ensuring that once a credit card is obtained through these means then the credit card holder is keen about consistently repaying the credit card bills on time.
Disclaimer: Mint has a tie-up with fintechs for providing credit; you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit scores. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
