Can you really get a credit card without a bank account? Here’s the truth

A growing number of aspiring credit card applicants are seeking financial flexibility, ease of use, and smooth approval without necessarily linking their accounts to conventional banking. With the advancement of technology and the focus of the government and allied institutions on financial inclusion, this task has now become easier for applicants to accomplish.

Applicants can secure credit cards even without a bank account by understanding a few basic points and applying them properly while submitting their credit card applications. Before securing any credit instrument, like a new credit card or a personal loan product, applicants should first clearly understand the entire repayment process and product management. For this, even professional guidance can be taken.

Look beyond banks for card issuers

Several independent financial institutions, NBFCs, and fintechs have started offering credit cards to applicants who specifically do not wish to open a savings account with them.

These credit cards, like their banking peers, work seamlessly and offer similar services such as shopping, bill payments, and travel booking while also assisting users in building solid credit histories. Furthermore, individual credit card holders who have a strong credit history generally also have a solid credit score.

Basic eligibility and key requirements

Applicants are required to:

• Be at least 21 years old so that they can handle credit properly.
• It must showcase a consistent flow of income and a solid income source, such as salaries or business income.
• Generally, the applicant must have a minimum credit score of 750 or higher. The higher the score, the better the chances of approval.
• Essential documents such as PAN, Aadhaar, photographs, utility bills for address, salary slips, or bank and income tax statements if self-employed are required to correctly submit the credit card application.

Note: The basic eligibility discussed above is illustrative. For updated terms and conditions, contact your respective financial institution, as the eligibility criteria vary from one institution to another.

4 steps to secure a credit card

1. Identify and shortlist issuers: First, you should carry out proper research and due diligence on fintechs, NBFCs, or retail co-branded card offers and opportunities. Focus on credit card offers that do not require a bank account. The shortlist reputable financial institutions that offer credit cards without the mandate of a bank account.
2. Check the card’s eligibility: Carefully review the basic eligibility criteria, such as age, income requirements, and residence criteria, before submitting your application.
3. Compile documentation: Efficiently compile all the essential documents required for the successful submission of the application. KYC papers, income proof, Aadhaar details, photographs, etc., all documents must be aligned and arranged in an orderly manner.
4. Submit your application: Once the basic groundwork is done, visit the issuer's online portal or nearest designated branch. Submit your details and await verification. Some financial institutions offer instant or near instant approval, subject to the applicant meeting basic criteria.

Advantages of credit cards without an account

There are several advantages of having a credit card without an account:

• No requirement to maintain a minimum balance in your bank account.
• Payment of credit card bills is possible through UPI, payment applications, or over the counter.
• This can be ideal for gig workers, those preferring cash, and applicants new to the credit ecosystem.
• Flexible repayments not tied to any bank, full-fledged rewards, cashbacks, and credit score growth possibility.

In conclusion, applying for a new credit card without a bank account is completely within reach for aspiring applicants. All they need is proper due diligence, deep research, a comparison of terms, and professional guidance.

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Disclaimer: Mint has a tie-up with fintechs to provide 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 risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.