Before you apply for a credit card, it helps to know how to qualify for a credit card. That way, you can estimate your chances of getting approved and save yourself a credit inquiry if it’s more likely that you’ll be denied. The income requirements don’t require you to work full-time to get a credit card. You can put your annual earnings from your part-time campus job on your credit card application. If it’s high enough to repay a credit card balance, the credit card issuer will consider you. The new restriction means you can’t put your parents’ income on the credit card application unless you’re applying for a joint credit card or your parent is giving you money or paying your bills every month. Some credit card issuers only approve applicants who have spotless credit reports. Others will approve your application as long as your late payments aren’t in the past two years. Having a negative credit history with a specific credit card issuer could keep you from getting approved by that same issuer. For example, if you had a charge-off with a prior Capital One credit card, you might not get approved for a new card from Capital One for at least one year. If your credit utilization is too high, you might be denied. How much debt is too much varies by the credit card issuer and by the type of credit card you apply for. Aim to keep your credit card debt below 30% of your credit limit. A credit card issuer might compare your debt to your income to decide whether you can afford another credit card balance based on your other debt payments. A high debt-to-income ratio would indicate that you don’t have enough income to pay back another credit card balance. When you ask someone to help you get a credit card, that person is taking a risk by co-signing for you. If you don’t pay the balance back, the co-signer will be responsible for the balance and will receive any credit damage from payments you’ve missed on the account. The secured credit card requires you to make a security deposit against your credit limit before you can be approved. After about a year of timely payments, you may qualify for an unsecured credit card, presuming no other negative information is added to your credit report. Many secured credit card issuers will accept a security deposit as low as $200. If you don’t have that much, start setting aside $50 to $100 each month until you have a good security deposit saved up.
