What are the Requirements to Sign Up for a Credit Card?

Let’s Learn About: The Requirements to Sign Up For a Credit Card In order to approve you for a credit card, companies will have minimum requirements for your age, income, and credit score. Student and secured credit cards have different requirements than standard credit cards. It’s possible to sign up for some credit cards even if you have no credit history.

You can sign up for a credit card by filling out an application by phone or online. You can also see if you’re pre-approved before applying. That may sound easy, but getting approved for a credit card after you apply often represents years of responsible credit use. That’s because credit card issuers will review your credit history to determine whether you meet the necessary requirements for the card before accepting or denying your application. It’d be wise to get familiar with your credit score — and how you can try to improve it if you need to — before applying, but you do have options if you have little to no credit history.

Here’s what to do if you’re looking to sign up for a credit card:

1. Review the basic credit card requirements before signing up

Not everyone can sign up for a credit card and get approved for one. There are a number of requirements you’ll have to meet to be considered, depending on the credit card issuer. Here are four sample criteria:

Age: First, you need to be old enough to get a credit card. The Federal Credit CARD Act of 2009 mandates that if you’re under 21, you will need to have an independent income to get approved for your own credit card account. There are also student rewards cards, like the Discover it® Student Card, for young adults who qualify. In most cases, you must be at least 18 years old to open your own credit card account.

Income: Credit card issuers want to know that you have your own source of income to be able to pay your bills. If you are 21 years old or older, credit card issuers may consider your income and the income of another person that is available to you as part of the application process to determine whether to approve your application, and if so, the account’s credit limit.

Low Debt: Credit card issuers want to know how much debt you have so they can evaluate whether your debt is manageable at your income level. A good rule of thumb is to use only a small percentage of your available credit — which is measured by your credit utilization ratio. If you already have a credit card or line of credit or loans under your name, you may want to try paying down your existing debts before applying for new credit cards.

Credit Score: Credit card issuers evaluate your credit history and the likelihood you’ll be able to pay your bills by looking at your credit score. If you have never had a credit card or taken out a loan before, you might not have any credit history. If that’s you, you have options—read on.

2. Learn the age, income, and credit score requirements for first-time cardholders

If you’ve never had a credit card before, the first thing to realize is that, with each credit application, a credit card company assesses your complete financial picture — including your credit report, income, expenses, and other criteria — and decides whether to extend you an offer based on that full picture. So if you’ve responsibly managed other forms of credit in the past, you may qualify.

But if you’re starting out with no credit history at all, you may be a risk in the eyes of the credit card issuer because it can’t gauge your ability to make payments on time. The good news is that you have options to build your credit history, and you might be surprised at how fast you can do so.

3. Explore how to sign up for a credit card with no credit history

Your first option is applying for a student credit card to help build your credit history.

A second option is to apply for a secured credit card. If you’re approved, a secured credit card requires a security deposit equal to your line of credit.

You can also become an authorized user on someone’s account, such as a parent or spouse. Authorized users have the ability to make purchases and pay down a balance on the account, while building a credit history with responsible use in the process.1

4. Considerations in choosing the card to sign up for

If you’ve decided to sign up for a credit card, here’s what you need to consider to find the right fit.

Why you want the credit card

First things first: you need to figure out what your goal is for getting a new credit card. Are you hoping to use it to build your credit history? Do you want to take advantage of a promotional APR offer? Are you hoping to transfer a balance to your new card at a lower interest rate? Understanding what purpose the card will serve can help you target your search.

Your credit score

Some credit cards are geared toward people with excellent credit, while others may be more appropriate for someone with good or fair credit. Familiarizing yourself with what’s in your credit report can help you know where you stand and search accordingly. Everyone in the U.S. can access their credit report for free once every twelve months from each of the three main credit bureaus.

Rewards:

A rewards credit card can be a valuable tool for earning points, miles or cash back on purchases. Note that some rewards cards come with an annual fee.

Type of rewards

Someone who does a lot of flying, for example, may want a travel rewards card. If you make most of your credit card purchases at the grocery store, on the other hand, a cash back credit card might make more sense.

Fees and APR

Check whether the card has an annual fee, foreign transaction fees, or a high APR. Signing up for a card with these fees can increase the cost of using a credit card significantly, especially if you are unaware of how these fees apply to your credit card’s usage.

Introductory bonuses

Many rewards cards offer an introductory rewards bonus for new members. For example, with Discover Cashback Match, all the Cashback Bonus you’ve earned by the end of your first year with Discover is matched, dollar-for-dollar.2 If you’re interested in a particular card because of the bonus offer, you need to be clear on whether you can meet any requirements to get the bonus offer (if there are any).

Sign up for a credit card the smart way

Signing up and applying for a credit card can be an exciting way to gain access to credit and start building your financial future. Smart moves like researching for the best card and, once you’re approved, automating payments so that funds are automatically debited from your checking account each month can set you up for success. Make sure you monitor your statements, as well as your credit report periodically, to ensure that there are no errors or surprises.

Credit Card Requirements

Are you looking for a new credit card? Learn what to expect when you apply for a new credit card and read about common requirements that you might need before applying.

Before applying for a job, you would first spruce up your resume. Before using a dating app, you would first polish your profile. And before applying for a credit card, you would first make sure you qualify.

We can't help you get the job or the date, but we can help you understand the criteria for credit card approval.

How credit cards work

A credit card is traditionally a physical card issued by a lender — a bank or credit card company — that is connected to an account of revolving credit. Simply put, this means you're borrowing the money when making purchases and you're required to pay back monthly a minimum amount, at least.

Virtual versions of credit cards, which would live in your device's digital wallet, may also be available as part of the account.

Lenders set a credit limit on how much you can charge to the account. The amount of every credit card transaction is subtracted from that limit and monthly payments are added back to it, so the amount of available credit fluctuates.

Credit cards come with an annual percentage rate (APR) of interest that can vary from lender to lender.

What you need to apply for a credit card

Half of the equation to catch a potential employer's attention or attract someone's personal interest is meeting their essential criteria. The other half is whether your personalities are a good fit.

The good news when it comes to credit card approvals is that there are no subjective "vibe checks" beyond the essential criteria. On the other hand, the criteria itself may be much more detailed than what it takes to land an interview or to get someone to swipe right.

Eligibility requirements to get a credit card in the U.S.:

At least 18 years old (with proof of independent income until age 21)

Source of income

U.S. citizenship or permanent residency

Credit history

Credit card application information:

Full name

Date of birth

Social Security number

Country of citizenship

Contact information (physical address, email, phone number)

Employment status

Annual income (including nontaxable income, such as Social Security or disability income)

Housing expenses (mortgages or rental payments)

Bank account information (how many and what types)

If you apply for a credit card in person or over the phone, the lender will check to see if you're eligible before moving on to the application details. If you apply online, the eligibility questions will be included as part of application.

What is preapproval, and should you get it?

Dozens of envelopes in your mailbox declare that "you're preapproved!" and have little cardboard examples of what the real credit card would look like.

The most important thing to know is that you're invited to the credit card party, but you aren't wearing the party hat just yet. Preapproval means that a lender has done a "soft"See note1 inquiry on your credit report to know that you already meet some of their criteria; however, you must still officially apply for the credit card.

Benefits of preapproval offers:

You may be more likely to be approved by that lender, should you apply. Soft inquiries don't affect your credit score. You can compare the offers to decide which lender has more favorable options, such as interest rates or types of credit cards (e.g., cash back, rewards, or low rate), before you fill out an application.

Once you decide to submit an application, the lender will conduct a "hard"See note1 credit report inquiry to determine whether you're approved. This can affect your credit score.

Know your credit score.

Your credit report includes financial information such as bill payment history, current debts and balances, previous loans, how long you've held credit, the different credit accounts you hold, and how frequently hard inquiries into your credit have been conducted.

All of this is reflected in a score that lenders use to assess how risky of a credit customer you may be, and whether or not they approve your application. (Customers with little or no credit history at all, for example, may be considered higher risk compared to customers who carry balances but consistently pay their bills on time.)

There are different ways to help improve your credit score, including doing your own soft credit report inquiries at least annually to make sure you know where you stand. One way to avoid lowering your score is to only apply for credit when you need it. Remember, every application is a hard inquiry, so the fewer, the better.

Types of credit cards

These are the four most common types of credit cards:

Rewards cards earn points on qualifying purchases, which can then be redeemed for gift cards, cash back, travel and more. Rewards card typically have a higher APR and may have annual fees. Cashback cards, similarly, earn cash back on qualifying purchases and may also have a higher APR. Low-rate cards have a lower APR, and most don't have fees. These don't usually earn any rewards or cash back with purchases. Secured cards have a tight credit limit that's based on a deposit you make with the lender.

Credit card Q&A:

Q: If I only pay the minimum on my card each month, which card might benefit me the most?

A: Since interest will be compounded onto the monthly balance you carry, a low-rate card might help keep that total balance more manageable.

Q: If I've never had a credit card before, what should I consider when choosing one?

A: If you're applying for your first credit card, read more about the general types of credit cards available so you can choose the card that's right for you.

Q: If I'm paying off my balance every month and want to earn something extra, what factors should I consider?

A: Consider factors such as the type of benefits you may be able to receive, such as cashback if you want some extra spending money or rewards points if you're aiming for a specific goal such as discounted airfare. Be sure to understand how you earn those extra perks and what type of purchases qualify. Some cards target specific retailers or categories of spending. Others may earn cash back or points regardless of where you make purchases. Like with any credit card, you'll also want to consider annual fees, and interest that could still be charged even when paying off your balance in full, such as if you take a cash advance.

Q: I have a high-dollar expense on the horizon, which will take some time to pay back. Would a credit card benefit me?

A: The answer depends on what type of rate you may be eligible for. If you receive a promotional credit card rate such as 0% for 18 months, as an example, and you can pay off the balance during that time, a credit card could work. If the rate increases substantially after the promotional period, and you do not anticipate being able to pay off the balance, you may want to compare the rate, repayment period, and any other terms and conditions to a personal loan.

What to do if your credit card application is declined

It's important to note that, regardless of a lender's required criteria, their decision on whether to approve you for a credit card is not based on your personal information. The Federal Trade Commission's Equal Credit Opportunity ActSee note1 prohibits discrimination related to race, color, religion, sex, marital status and other personal details. If you're denied, you will receive a letter in the mail advising you of why the lender did not approve the credit card application. You will also be entitled to request a free credit report from the credit reporting agency that provided the report to the lender to make the decision.

If you're denied credit, it isn't just about your credit score. Look at your full credit report and see where there may be red flags (late payments, too much debt, not enough credit history, etc.).

The USAA Advice Center provides general advice, tools and resources to guide your journey. Content may mention products, features or services that USAA Federal Savings Bank and/or USAA Savings Bank do not offer. The information contained is provided for informational purposes only and is not intended to represent any endorsement, expressed or implied, by USAA or any affiliates.

Credit Card Eligibility Criteria

Click here to Check your Eligibility!

To ensure that your credit card application is approved, you must meet certain eligibility requirements. Each bank or card may have different parameters. If you don’t meet the requirements set by the bank, your application may be rejected. If this happens, your credit score might take a hit.

Credit card Eligibility Requirements to get a credit card in India

Applicant must have a minimum age of 18 years

The minimum income salary must be between Rs.1 lakh and Rs.3 lakh.

Applicant should either be salaried or self-employed

Check Eligibility Criteria for Top Credit Card Providers

Factors of Credit Card Eligibility Criteria

Age: You must be at least 18 years old. However, some banks have a minimum requirement of 21 years. The maximum age requirement also differs, and it generally goes up to 60 years.

You must be at least 18 years old. However, some banks have a minimum requirement of 21 years. The maximum age requirement also differs, and it generally goes up to 60 years. Annual salary: Your annual income determines if you’re eligible for a particular card. The minimum salary required to apply for a credit card in India is around Rs.3 lakh p.a. Although, it’s best to check this criterion with your bank as this requirement differs depending on the card issuer you choose.

Your annual income determines if you’re eligible for a particular card. The minimum salary required to apply for a credit card in India is around Rs.3 lakh p.a. Although, it’s best to check this criterion with your bank as this requirement differs depending on the card issuer you choose. Nationality or residential status: Citizens, residents, and non-residents can apply. However, there are a few cards that are only available for Indian citizens.

It is vital that you go through the eligibility criteria before applying for a card. Make sure to tick off each criterion in the checklist to improve your chances of getting approved.

Factors Affecting Your Credit Card Eligibility

Besides the above-mentioned criteria, there are certain factors that also determine your eligibility:

Credit score: Your chances of getting a credit card increases when you have a stellar credit score. If you have a bad score, your application will most likely be rejected. A good credit score is anywhere from 750 to 900.

Your chances of getting a credit card increases when you have a stellar credit score. If you have a bad score, your application will most likely be rejected. A good credit score is anywhere from 750 to 900. Existing Debt: Your card provider will also consider your credit utilisation ratio. If your dues exceed the granted limit, it may affect the approval of your application.

Your card provider will also consider your credit utilisation ratio. If your dues exceed the granted limit, it may affect the approval of your application. Employment: Another factor that affects your eligibility is your employment status. Staying in your current job for more than a year can improve your chances of getting a credit card significantly.

Another factor that affects your eligibility is your employment status. Staying in your current job for more than a year can improve your chances of getting a credit card significantly. Location: Banks also take your location into consideration when they assess your application. Certain cards are only available to those residing in particular cities.

Documents Required for a Credit Card Application

The documents you will need to furnish with your application will differ from bank to bank. However, below is a list of some of the basic documents required you will need to submit:

Completed application form

Passport-size photographs

Proof of identity (copy of PAN, Aadhaar, passport, etc.)

Proof of residence (utility bills, Driving Licence, PAN, Aadhaar, etc.)

Latest salary slips

Form 16

Bank statements

If you’re self-employed, you will need to submit:

Income proof

Statement of accounts

Proof of business

If you’re applying for a student credit card, you will have to provide your student ID card along with your application form.

How to Check if You’re Eligible for a Credit Card on (Step-by-Step Process)

For Salaried Persons

Step 1: Click on the link

Step 2: Click on ‘Salaried’ from the slider

Step 3: Enter the name of your company

Step 4: Type in your net monthly salary

Step 5: Enter your PIN code

Step 6: Type in your mobile number

Step 7: Click on ‘Submit’

Step 8: Enter your first name, last name, date of birth, and email ID

Step 9: Enter the OTP which you will get on the registered mobile number

Step 10: Click on ‘Submit’

Step 11: Choose the banks with which you have existing credit cards

Step 12: Type in the highest credit limit of the credit cards

Step 13: Enter your address and click on ‘Save’

Step 14: You will get a list of all the credit cards suitable for you

Step 15: You can also visit the main credit cards page and apply for a credit card once the above processes are done.

For Business Owners and Self-Employed Professionals

Step 1: Click on the link

Step 1: Click on ‘Business Owners’ or ‘Self-Employed Professionals’ from the slider

Step 2: Type in your net monthly salary

Step 3: Enter your PIN code

Step 4: Type in your mobile number

Step 5: Click on ‘Submit’

Step 6: Enter your first name, last name, date of birth, and email ID

Step 7: Enter the OTP which you will get on the registered mobile number

Step 8: Click on ‘Submit’

Step 9: Choose the banks with which you have existing credit cards

Step 10: Type in the highest credit limit of the credit cards

Step 11: Enter your address and click on ‘Save’

Step 12: You will get a list of all the credit cards suitable for you

Step 13: You can also visit the main credit cards page and apply for a credit card once the above processes are done.

For Independent Workers, Students, Retired Persons, and Homemakers

Step 1: Click on the link

Step 1: Click on ‘Independent Workers’, ‘Students’, ‘Retired Persons’ or ‘Homemakers’ from the slider

Step 2: Enter your PIN code

Step 3: Type in your mobile number

Step 4: Click on ‘Submit’

Step 5: Enter your first name, last name, date of birth, and email ID

Step 6: Enter the OTP which you will get on the registered mobile number

Step 7: Click on ‘Submit’

Step 8: Choose the banks with which you have existing credit cards

Step 9: Type in the highest credit limit of the credit cards

Step 10: Enter your address and click on ‘Save’

Step 11: You will get a list of all the credit cards suitable for you

Step 12: You can also visit the main credit cards page and apply for a credit card once the above processes are done.

FAQs on Credit Card Eligibility