Lifestyle

How to Qualify to be Approved for a Credit Card

Many people desire to have a credit card; however, getting one is not as simple as applying. There are specific criteria that you will have to meet to qualify for the credit card, and the most important part of the criteria is having a good credit score. In order to save yourself time and embarrassment, you should have an idea as to whether or not you qualify. Listed below are some of the ways to have a better chance at being qualified to be approved for a credit card.

Age
First, you must be sure that you are old enough to get a credit card. The legal age to qualify is 18; however, most people do not get one until they are at least 21. Additionally, you must be sure that you are able to show that you have a job with a steady income. If you do not have this, then you may have to get someone to apply for their card with you.

Have Your Own Income
When you are applying for a credit card, you need to have your own income. No longer are applicants allowed to list their parents’ income as part of their income. Individuals now have to show their own income and list their place of employment. In many cases, the credit card company will call the employer to verify the applicant’s place of employment. If you have your own income, then the credit card company will know that you have your own money to pay the bill each month.

Good Credit History
One of the most important pieces to being qualified for approval of a credit card is to have a good credit history. If your credit history is good, you will have a good chance of being approved. However, if there are lots of negative marks on your credit history, then you will not be approved for a credit card. If you are approved, you will have a high interest rate and potential annual fees.

Low Debt
Credit card companies often look at the amount of debt that you have when determining if you are qualified to be approved for a credit card. Whenever you have a high credit utilization, the chances of being denied for the credit card are increased. For the best chances of approval, your credit utilization should be below 20%.

A credit card is a good way to build on your credit. However, before you are able to get one, there are certain criteria that you must meet. Once you are approved for the credit card, you should be sure to use it wisely.

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