A credit card is a luxury no more. It has become a must-have accessory in your wallet. Credit cards bring out the world of convenience, discounts, cashback, reward points, etc. You’ll need to meet minimum financial requirements to get approved for a credit card account. If you’re an adult with a steady job and have a good credit score by making on-time payments, you shouldn’t have much trouble getting a credit card.
Basic requirements to get a credit card:
- Be at least 21 years old with a verified source of income. As per the CARD Act, 2009 young adults without any income who can’t afford to repay their obligations are not encouraged, in order to prevent banks from the risk.
- Have a social security number. You’ll need to have a social security number to build a credit history. If you’re a non-citizen without a social security number, you won’t be able to get a credit card.
- Have a source of income. The applications always ask for your monthly income estimation. Banks aren’t going to pay debts on behalf of you in times you haven’t repaid. It’s not necessary to show your complete income, but just the amount available to pay your credit bills.
Your reported income is one of the main factors to decide whether to approve your credit card application and how much credit limit you extend. The banks can ask for proof of income in certain circumstances to open a credit card account. Additionally, if you are a full-time student, you will be approved for a student credit card, if you earn a bit more apart from your part-time job.
- Have a positive credit history. Establishing a good history for a credit card is required for applicants. Most of the cards require a good credit score of 800 or above, but some cards are more relaxed.
How to apply for a credit card:
The first step is to get a suitable credit card according to your needs. There are dozens of credit cards available to you. Once you decide on your card, a formal application will need to be completed.
A credit card application will ask for you:
- Name, date of birth, and social security number
- Gross annual income
- Housing situation. A homeowner or rented home (monthly housing payments).
- Time at current residence. Applications ask you how long you resided in the current area for two reasons. First, your address helps to verify you. Second, how long you’ve lived in one place shows your stability in your job and pay your debts regularly.
- Your signature and date. Credit card applications are a legal document, so banks require your signature evidence of your account.
Optional fields on a credit card application form
Some applications may ask you additional questions like:
Authorized users
You can add authorized users to your account, banks will ask you their names, and they will receive their cards to make purchases. But you will be responsible for the payments of the credit card.
Balances to transfer
You can transfer money from one credit card to another new card if you do a balance transfer. You’ll need to add on:
- Creditor name
- Account number
- Payment address
- Transfer amount
Bottomline
Keep in mind, applying for credit cards and approving it takes time. Your regular income and credit scores (paying your debts) are major factors for your credit card approval.
