Getting a credit card or loan requires applicant to show income proof. This is a mandatory requirement by every lender. Based on the income, lenders evaluate the repayment capacity. Higher the income, higher is the credit limit and vice versa. And better would be the repayment capacity of the applicant.

However this is not always true. If credit history is poor, then chances of rejection are high. Because lenders hate defaulters as such individuals are not credit worthy and may become non-performing asset (NPA) in the future.

However there are many conditions when applicant is not having income proof or salary slip and wants credit card. Possible scenarios are:

• Recently got the job and salary is not credited
• Employer does not provide salary slip
• Applicant is jobless at the time of application

So in such cases, how can you get credit card without income proof?

Not many of us are aware that there are two ways to get a card with no income/salary proof.

1. Against fixed deposit
2. Add-on card

Let’s explore both these options in detail.

Against fixed deposit:

If the applicant holds fixed deposit account with the bank, then he/she can apply for credit card against FD. Such card is also called as secured credit card since you are keeping the money in your fixed deposit account as a security.

Many lenders offer this option. And here is the list of few banks and name of the card:

• ICICI Bank – Coral
• Kotak Mahindra Bank – Galaxia
• Andhra Bank – Signature
• Bank of Baroda – BOB Cards Assure
• State Bank of India – Unnati

Get the detailed list of such cards.

How credit card against fixed deposit works?

The basic requirement is to have FD account with a pre-defined amount for a fixed minimum tenure. This amount is then used to calculate the credit limit. And typically banks offer a limit which is 75%-85% of the amount. Higher the amount kept in the account, higher would be the limit and vice-versa.

Few features of such cards are:

• Minimum documentation
• Lower interest rate
• And as mentioned above, there is no need to provide income proof
• You do not lose out on the interest on the FD
• Rewards points and cashbacks are offered

Supplementary or add-on card:

You can get this card only when family member holds credit card with the applicant bank with a good credit history. For e.g. if the husband has axis bank credit card then he can apply for a supplementary card on wife/children/parents name.

Few features of add-on card:

• Benefits offered on primary card are available in the add-on card as well.
• Many such cards do not have any joining or annual fee
• Minimum documentation work is required compared to traditional way of application

Risks associated with supplementary credit card, which primary owner should be aware of:

Payment default: If the add-on card holder defaults the payment, then it will impact the credit rating of the primary holder. Moreover the credit limit will be reduced and higher interest rate would be applied. And most importantly there is a risk of future loan/credit card application getting rejected.

Over spending: If card spent is beyond the specified limit, then it will impact the credit score of the primary owner.

Late or partial repayment: Missed or late payment or not making full payment should be strictly avoided. Because a single scenario will result in a late payment charge. And frequent behavior will result in negative credit impact.

Many banks in India offer add-on credit cards:

• Axis Bank
• State Bank of India
• Citibank

Irrespective of the credit card, remember to make monthly payment on time and fully. This will help in achieving a good credit score.