Some people have no trouble applying for a credit card. They complete and submit an application, and within a couple of weeks, they have a new credit card in their mailbox. Unfortunately, this isn’t a shared experience and many people have difficulty acquiring credit.
Credit is essential to build and maintain a credit history. And although some credit card companies stage credit as easily attainable with pre-approved offers, commercials and other advertisements, qualifying for a credit card can be anything but simple.
Before completing and sending off your application, understand what it takes to qualify for a credit card.
Meet the age requirement.
Being under the age of 18 can stop a credit card approval because minors cannot enter into contracts. Not to say that it’s impossible to qualify for a credit card under the age of 18. But in this case, credit card companies require a parent or legal guardian to cosign for the credit card. As a joint applicant, the parent or guardian is held responsible in the event of default.
Provide proof of income.
Credit card applications inquire about personal income. Credit card companies use this information to determine whether you’re able to pay back any balance incurred. And if approved, your income impacts your credit limit on the credit card. Even with perfect credit and few debts, lender’s aren’t likely to issue a high credit limit if you earn a modest income.
Maintain a positive credit history.
The higher your credit score and the better your relationship with your existing creditors, the easier it is to qualify for a credit card. The credit card company will review your credit report and take note of any current balances and your payment record. A history of lateness, skipped payments, as well as a high credit utilization ratio can stop any credit card approval. People with bad credit are more likely to repeat past mistakes. If your credit history isn’t stellar, many creditors will reject your application.
Save up for a security deposit.
If you’re new to the credit world or rebuilding your credit, a secured credit card is your best option. It doesn’t take much to meet the qualifications for these types of credit cards. Primarily because credit doesn’t factor into the decision. You can have a low credit score or no credit score, but still get approved as long as you have income and a security deposit. Security deposits can range from $300 to $3,000 and work as collateral for the credit card. The deposit is a decisive factor in your credit limit. And since many creditors report secured accounts to the bureaus, these cards can help improve your credit score.
Hi I used to get pre-approved credit cards from capital one from 2001 to 2008 and I didn’t meet the requirements that that are posted here. I known that things have changed since then. I never accepted offer from them because I wasn’t ready for a loan and didn’t have an idea on how to pay back the loan However without these requiremnets would there be ways that I could show a bank credit card company or credit union that would be acceptable to them to prove that I can pay back the loan? It seems like I have everthing in place except the following a credit card and or loan, where to go tincrease my chances of getting one fast and the best way to show through finacial resources and newletters. I have learned that there really is no way around without paying a credit card even though something I can use to pay with a money order. Any helpfull hints or advice anybody does have on how I can make it easier for myself?