What Qualifies You for a Credit Card?

Applying for a credit card is an easy thing to do but qualifying may be the most difficult for some people. In general, the qualifications are the same for each credit card issuer. The eligibility requirements are as follows:

• The applicant must be at least 18 years of age.
• The applicant must demonstrate that he is earning enough income to repay the loan that the credit card issuer is offering him.
• In most instances, the applicant must be a legal resident or a citizen of the United States.
• The applicant must have a credit history, even if it is poor.

If an applicant meets the qualifications listed above, he or she will be welcome to apply for the card. He will need to tell the card issuer his country of origin, Social Security Number, date of birth and full name. He must also provide contact information, including telephone number, email address and street address.

A New Applicant Will Also Need to Answer the Following Questions About His Finances:

• Is he employed?
• How much total income does he earn each year?
• Does he earn any non-taxable income, such as Workers’ Compensation, disability, public assistance or Social Security?
• How much does he pay for monthly housing costs?
• Does he have a checking or a savings account?

Credit card issuers are highly interested in the answers to these questions, but they are not going to help the issuers make their decisions. They will decide whether or not someone is approved for a credit card based on his or her credit scores and credit history.

If someone is applying for a credit card before the age of 21, the credit card issuers will perform additional scrutiny before accepting the applicant for a credit card. Those under 21 can get around this by proving that they are earning a steady income.

The Unsecured Credit Card

Another option for someone under 21 is an unsecured credit card. With this option, the applicant offers the credit card issuer a deposit that will serve as the credit card’s limit. Once 365 days have passed, the person may qualify for an unsecured credit card that doesn’t require a deposit.

When people are under the age of 18, they wonder, “how old do you have to be to get a credit card?”

You must be 18 years old, but young people can get a head start on qualifying for a credit card by learning the basics of financial management. The experts at SoFi recommend that young people start learning how to budget, find out what credit card interest is and become familiar with credit scores before they ever apply for their first credit cards.

In the meantime, an applicant can do other things to ensure that he or she qualifies for a credit card later. The experts at SoFi state that a young person has the option of becoming an authorized user on a parent’s or a friend’s credit card account. This option helps them build credit as they are added to another person’s credit history.