Finance Frontier

Traditionally, banks required an active savings or current account to issue credit cards, but times have changed. Today, you can still qualify for a credit card without having a bank account, due to secured and co-branded cards that cater to various segments, such as homemakers, students, retirees, and unemployed individuals.

Here’s how to obtain a credit card without a bank account, along with the benefits, required documents, and application steps.

Can I Get a Credit Card Without a Bank Account?

Credit card issuers now offer specialised variants for diverse consumer groups, including youth, homemakers, retirees, and the unemployed, even without requiring traditional bank accounts. These options provide financial flexibility and cater to individuals who previously might not have qualified for a credit card, expanding access to credit for a wider audience.

Financial institutions now offer tailored products for non-account holders, including secured credit cards against fixed deposits, standalone cards with simplified KYC norms, and co-branded cards with partners with easy eligibility criteria. So, a credit card is now possible, even if you don’t have a functional bank account.

Steps to Apply for a Credit Card Without a Bank Account

The application process for credit cards without bank accounts involves:

1. Firstly, you must review the various credit card variants on offer to apply under relaxed eligibility norms. Analyse features like joining fees, interest rates, rewards, credit limits, etc. and pick the card that best fits your needs and financial circumstances.

2. Next, gather all the required KYC identity and address documents, income proofs, photographs, etc, and visit the nearest branch of your chosen financial institution.

3. After carefully checking the accuracy, submit the duly filled application form and documents at the branch.

4. The financial institution will then initiate verification of your KYC credentials and eligibility criteria per regulatory guidelines. If your credit card application is approved after due diligence, the issuing institution sends your approved credit card to your registered contact address via speed post or courier within 7-10 business days.

5. Finally, activate your new credit card through the IVR telephone banking channel or via secured internet banking by setting the card PIN. The card gets activated for immediate usage on successful PIN confirmation.

Benefits of Getting a Credit Card Without a Bank Account

The key advantages include:

• Access instant credit to fund large purchases, urgent spends or daily transactions
• Allow smooth online shopping, flight and hotel bookings with enhanced buyer protection
• Withdraw cash when needed by using credit cards across widespread ATM networks
• Make digital contactless payments via POS machines through “tap-and-go” functionality
• Special deals, discounts, and privileges like higher reward points, cashback, lounge access, etc., are available.
• Help build credit scores over time through judicious card usage, which raises future loan eligibility

Documents Required for Getting a Credit Card Without a Bank Account

The usual KYC documents needed are:

• Completed credit card application form
• Identity proof like PAN, Aadhaar, Passport
• Address proof like electricity bill, Aadhaar, rental agreement
• Income proof like Form 16, salary slips, bank statements
• Passport-size photographs

Additionally, for secured credit cards, submit relevant fixed deposit certificates against which the card is sought.

Conclusion

Specialised credit cards against fixed deposits or relaxed norms enable access to credit cards even without active bank accounts. New variants like secured credit cards specifically target homemakers, senior citizens, unemployed individuals, and youth without needing bank accounts.

While credit limits and fees tend to be higher, such cards empower those outside the banking fold to enjoy the convenience and rewards of electronic payments and online transactions through cards.

FAQs

1. What documents do I need for getting such credit cards?

You need to submit identity proof, address proof, income proof, photographs and other KYC documents along with the application form as per the bank process.

2. Can I get a credit card without a credit score?

Anyone with a low or no credit score can apply and get a secured credit card.

3. Can students get credit cards without proof of income?

Some financial institutions offer student credit cards with lower eligibility criteria, including no proof of income.

4. Should homemakers also apply for these cards?

Yes, cards against FD and standalone cards suit homemakers nicely, allowing them access to electronic payments and purchases.

5. How to make credit card payments without a bank account?

To settle dues against such specialised credit cards, you can use payment gateways, wallets, cash payments at branches, or cheques sent via drop-boxes.