How to Qualify for a Credit Card – Getting your first credit card is a tricky thing.It wont be hunky dory,but there will be verification,documentation and most important pre checks on your financial position before the card issuer can decide if you qualify for the card or not.Just like taking a loan,the card issuer needs to make sure if you have the financial capability to repay the monthly dues on your card.
From your perspective,there are a few ways that you can strike off the boxes and check if you have a good chance at qualifying or not.
5 Ways How to Qualify for a Credit Card
Stable Personal Income – This is by far the most important point that you have to keep in mind before applying for your first credit card.the card issuer will want a suitable job that pays well over minimum wage before they can approve of your credit card application.
Just like a home loan that is a long term – monthly payment plan,a credit card will collect debt that lasts over your entire lifetime – in most cases.The card issuer needs some convincing that you can support these monthly dues,however small they maybe.In most cases,applicants that earn atleast $2000 a month are approved for a credit card.
Good debt management – If you are not a first time borrower and have past dues in from loans and other outstanding payments,then make sure to clear them or reduce them considerably.This can help you in two major ways- one it will show that you have excellent debt management and know how to structure and prioritize your finances and payments, nd secondly – it shows that your current debt in reasonably low and you are financially responsible enough to take on monthly credit card dues.
Age – Make sure you are above the legal age in your state before applying for your first credit card because with age comes responsibility too.You need to be mature enough to understand that you are using the credit card issuers money and not your own,and it needs to be paid back every month on time and in correct measure.In most states eighteen is the legal age but some states still require you to be 21 years atleast.
Establish healthy past credit – Again if you are not a first time borrower,and already have a decent credit score,it will not be difficult to obtain a credit card.However before sending in your application,make sure that all your past payments are in order,if you have not missed out any payments and all the past outstanding amounts are suitably well taken care of.Your credit history will come into play here and an unblemished past credit log ill increase your chances of qualifying for a credit card.
Blacklist- This last point should be fairly self explanatory,but in case you have bad debts in the past or a sketchy financial history,it will be hard for you to qualify for a credit card.Card issuers need to check with the three major credit bureaus whether you are a defaulter and if you re blacklisted.This could be for a variety of reasons,namely missed payments,bankruptcy, financial fraud.Safe to say that if you are on the watch list for any of these offenses,you will not qualify for another line of credit.