The general requirement of owning a credit card
The general requirement of owning a credit card: Owning a credit card used to be a right of passage. Qualifying for the plastic meant that you had an established job, a steady income, and a spotless credit rating.
Being granted the privilege of owning a credit card meant that you had earned your place as an adult. Today the eligibility criteria have been relaxed to the point where even teenagers can have their own cards and owning a credit card no longer has the same connotations as it once did. That being said, you still have to have a good credit rating to qualify for a credit card, and the same criteria that were effective back when your parents got their first credit cards are still taken into consideration today.
Related Article: Advantages of business credit card
Most financial institutions and lending companies have their own admissibility requirements, but in general, they all look for the same basic criteria. Creditors are definitely willing to take a risk with loans, but it is always a very calculated risk. They want to see that you have a steady income, that you are able to meet any monthly payments, that you have assets that can cover your expenses, and that you have a positive credit history.
Related Article: What to look for in a credit card?
They also look to see what kind of debt load you are currently carrying. Aside from a mortgage loan, you should not be paying more than 10-15% of your salary towards other debt. Although creditors will look at your past financial history, applying to own a credit card is a lot easier than applying for other loans such as a mortgage where the eligibility criteria are much more severe and stringent.
Related Article: Most common mistakes in using credit cards
With some careful planning and good money-management habits, you should not have any trouble applying for and owning credit cards. Hope you enjoyed this post on “The general requirement of owning a credit card“.
