How Housewives Can Apply for Credit Cards: Eligibility, Options, and Benefits

November 19, 2024 By: Nisha Chawla

Credit cards are no longer exclusive to salaried professionals or business owners. Today, even housewives can apply for credit cards and enjoy the financial freedom they bring. With various options tailored for non-working individuals, banks are making it easier for housewives to access credit facilities. Here’s how housewives can become eligible for a credit card, the types of cards they can apply for, and the benefits of having one.

Who Can Apply?

Banks have set specific eligibility criteria for housewives to apply for credit cards. Here’s what you need:

1. Age and Citizenship: The applicant must be at least 18 years old and an Indian citizen.
2. Fixed Deposit Account: Many banks require housewives to have a fixed deposit (FD) account. This FD acts as security for issuing a credit card.
3. Alternative Income Sources: Housewives can also showcase alternative sources of income, such as rental earnings, freelance work, or family support, to qualify.

Options Available for Housewives

Housewives can choose between different types of credit cards depending on their financial situation and banking relationship.

1. Add-On Credit Cards

• How It Works: These are supplementary cards linked to the primary credit cardholder, such as the husband.
• Credit Limit: The limit is shared with the primary cardholder’s credit limit, offering flexibility to both.
• Benefits: Housewives can make purchases without needing to apply for a standalone card.

2. Secured Credit Cards

• How It Works: These cards are issued against a fixed deposit held with the bank.
• Credit Limit: The credit limit is usually equal to or twice the FD value, ranging from 100% to 200%.
• Benefits: No need for a regular income, as the FD serves as collateral.

3. Prepaid and Co-Branded Cards

• How It Works: These cards are designed for specific use cases, such as shopping or travel, and may not require a high income.
• Benefits: They often come with cashback, reward points, or discounts.

Benefits of Credit Cards for Housewives

Having a credit card can be a game-changer for housewives, providing them with financial independence and added convenience.

1. Financial Freedom: Credit cards empower housewives to manage their expenses without relying on others.
2. Easy Shopping: With features like reward points, cashback, and discounts, credit cards make shopping more rewarding.
3. Emergency Funds: Credit cards act as a financial backup during emergencies, offering instant access to funds.
4. Credit Score Building: Responsible usage helps in building a strong credit history, which can be beneficial for future financial needs.

Things to Consider Before Applying

While credit cards offer numerous advantages, they must be used responsibly. Here are some key points to remember:

1. Timely Payments: Always pay your credit card bills on time to avoid hefty interest charges.
2. Budget Management: Use the card only for planned expenses to avoid overspending.
3. Understand Fees: Be aware of annual fees, late payment charges, and interest rates associated with the card.
4. Credit Limit Usage: Avoid exceeding the credit limit, as it can negatively impact your credit score.

How to Apply for a Credit Card as a Housewife

1. Add-On Card Application

• Submit a request through the primary cardholder’s bank.
• Provide necessary documents such as ID proof and relationship proof.

2. Secured Card Application

• Open a fixed deposit with the bank offering secured credit cards.
• Submit ID proof, address proof, and FD details.

3. Prepaid Card Application

• Approach banks or financial institutions offering prepaid cards.
• Provide basic KYC documents for verification.

Best Practices for Using a Credit Card

1. Track Expenses: Regularly monitor your credit card transactions to stay within budget.
2. Set Alerts: Use SMS or app alerts for due dates and spending limits.
3. Leverage Rewards: Take advantage of cashback, discounts, and loyalty points.
4. Avoid Cash Withdrawals: Using a credit card for cash advances attracts high interest rates and fees.

Popular Credit Card Options for Housewives in India

1. SBI FD Secured Credit Card: Offers up to 100% of FD value as the credit limit.
2. HDFC Add-On Card: Provides flexibility to housewives linked to the primary cardholder.
3. ICICI Coral Credit Card: Known for attractive offers on shopping and dining.
4. Axis Bank Prepaid Cards: Ideal for controlled spending with preloaded limits.

Final Thoughts

With evolving banking policies, housewives now have multiple ways to access credit facilities. From secured cards backed by fixed deposits to add-on cards linked to family members, the options are diverse. By using credit cards wisely, housewives can enjoy financial freedom while building a strong credit profile for future needs.