Obtaining a credit card is not that easy. Credit card issuers have requirements that they consider for each credit card applicant. Before you apply for a credit card, these steps below will guide you towards knowing how to be eligible to receive a credit card.
Be sure you are of age to have a credit card
The age bracket to qualify for a credit card is from 18 years old. But if you are under the age of 21 and you desire to have your own credit card then you must have a means of income that is not temporal before your application can be approved. Or better still share with someone who owns a credit card.
It is not a law that you have to earn on a full-time basis to get a credit card . in applying for a credit card, you can submit your yearly earnings on a part-time basis. If it is sustainable enough to meet your credit card balance, the credit card company will issue you with a credit card.
Have your personal income | How to Increase Your Eligibility for a Credit Card
To be eligible to receive a credit card, your personal income is required. Soon, credit card issuers will no longer accept in their account family income for persons applying for a credit card. These regulations were amended to allow Applicants that are up to 21 years of age and above to benefit from partners ‘earnings if they have access to their income.
This latest constraint means that you can not submit your family’s income on a credit card application unless you are asked for a shared credit card or spend money or pay bills every month.
You will be able to pay for your purchases via credit card when you have a secure source of income. Not only do you need to have your own personal source of income, but your monthly income must be high enough to meet the required credit limit.
How to Increase Your Eligibility for a Credit Card | Your credit history must be positive
A good credit history will help you get approval for your credit card. The better your creditworthiness, the more likely your consent will be.
Some credit card companies accept only a credit report that is not limited. Other credit card companies will approve the application, as long as there is no delay in payment in the last two years. When you have a negative card history, the credit card company might be hindered of consent to your application. For instance, if you have used your previous credit card to make purchases, you might not be allowed to have access to the new credit card.
But you don’t have to worry if you do not have the best credit cause there are credit cards that approve candidates who have a negative credit history.
Make sure not to be too indebted
For your application to be approved, the credit card company will consider the amount of the remaining credit card and loan balances. So If your loan is too high, you can be disqualified. debt that is too much depends also on the credit card company and the credit card. maintaining the debt on the credit card is below 30% of the credit limit.
The credit card company will then make a comparison between your debt and income to decide on whether you can afford another credit card based on other debt payments. A high debt-to-income ratio would show that you do not have enough income to pay off another bank.
Get someone to sign for you.
If you’re not qualified to receive a credit card due to age barriers or you actually don’t have enough income or maybe you have a bad debt, a friend of yours or family member can sign the application on your behalf. But the person to sign on your behalf must meet the credit card requirements before it will be approved.
If the signature on the application is that of your friend or family member, note that him/her bears the risk by signing up for you and if in any way you weren’t able to meet with the payment of the balance, the person will be held responsible for the balance and will receive any credit damage from the payments lost in your account.
Save a Warranty Deposit
Applicants with a new creditor with a negative credit history, who can’t get approval for a regular credit card, may be lucky with a secured credit card. The secured credit card requires Applicants to make a security deposit against their credit limit before they can be approved. Applicants will be qualified for a secured credit card after an annual payment is made. After the payment, it is assumed that there is no negative information to your credit report
A security deposit as low as $300 is accepted by a lot of secured credit card issuers, but If you don’t have up to that you can start saving aside $50 to $100 each month until you have a good security deposit saved up.
How to Increase Your Eligibility for a Credit Card