Applying for a Credit Card – Credit Card Eligibility Criteria to Keep in Mind

Applying for a credit card can be helpful if you’re looking for financial backup in case of an emergency. Having a credit card can also come in handy if you need to buy big-ticket items. 

Qualifying for a credit card usually means that you need to fulfil certain criteria. Credit card issuers have certain specific criteria which they consider for each credit card applicant.

What credit card eligibility criteria apply?

This depends on the lender you’ve chosen, as well as the type of credit card you’ve applied for. For instance, with some institutions, you are required to earn above a certain threshold.

Most credit card issuers have a legal qualifying age of 18 years and above.

You also need to have a steady source of income before you can be approved for a credit card. This also means that your monthly income should be high enough for the credit limit you’re asking for.

Having a good credit history can put you in a good position to gain favourable rates. You stand a better chance of getting approved for a credit card.

Having too much debt can raise red flags with credit providers.  When  you want to apply for a credit card, you should avoid having too much credit card debt. If a credit card issuer considers you to be a credit risk or to be over-indebted, they may deny your credit card application. If your credit utilisation is too high, you might be denied. You should always aim to keep your credit card debt below 30% of your credit limit.

If you have a bad credit record, getting a co-signer may help you secure the credit card. Keep in mind that if you don’t pay the balance back, the co-signer will be responsible for the balance.

Credit card eligibility criteria vary according to the type of credit card you are applying for, so keep this in mind.