With credit cards becoming a pervasive tool for expense management, rewards earning and credit history building in today’s financial ecosystem. However, not everyone qualifies automatically for a credit card. Several factors play into whether or not a credit card will scare an issuer off. Whether you’re new to credit card applications or assessing your current card qualifications, knowing what qualifies you for a credit card can be important.

1. Age Requirement

Age is one of the most basic eligibility criteria that needs to be satisfied to get a credit card. In many countries, applicants have to be at least 18. But this is not always true, like when you’re applying for a student credit card. You may still be able to qualify under the age of 21, but you'll need to meet more stringent requirements, such as proof of independent income or a co-signer.

2. Income and Employment Status

Your income is one of the biggest factors in determining whether you’re approved for a credit card. Credit card companies want to ensure you have the financial capacity to pay back whatever balances you accrue. Generally, having sufficient monthly or annual income is part of the credit card application requirements.

3. Credit Score

One of the most important aspects of applying for a credit card, is your credit score. It is a number that indicates your creditworthiness and shows how well you handle debt and payment. In general, a higher credit score means you pose a lower risk to lenders, and so you are more likely to be approved.

There are several different scoring systems that credit card issuers use (FICO score is the most popular). A general list of credit score ranges likely looks something like this:

  • Excellent (750 and above): You will likely be approved for most credit cards with favorable terms.
  • Good (700-749): You may qualify for most credit cards, including those with rewards programs and low-interest rates.
  • Fair (650-699): You may be eligible for some credit cards, but the terms may not be as favorable. You may be offered higher interest rates or lower credit limits.
  • Poor (below 650): You may struggle to qualify for traditional credit cards and might be better off starting with a secured card.

4. Credit History

In addition to your credit score, your credit history is another major factor that drives eligibility. Lenders will consider your past borrowing habits, such as how well you have paid off loans, along with any bankruptcies, missed payments or accounts in collections. Having a good credit history with a record of making timely payments can greatly enhance your chances of getting a credit card approved.

5. Debt-to-Income Ratio (DTI)

Your debt-to-income ratio is yet another key factor for credit card issuers. You calculate it by dividing your monthly debt payments by your gross monthly income. This ratio is a measure of what portion of your income is being used to service existing debt. Most lenders want you with a lower DTI ratio as this indicates that you will most likely not have a hard time repaying new credit card debt.

7. Types of Credit Cards and Your Financial Situation

Various kinds of credit cards have diverse eligibility criteria. You may be eligible for a student credit card, for example, which might have less stringent approval requirements if you are a scholar. A secured credit card may also be an option if you’re trying to build or rebuild your credit. With a secured card, you deposit a sum that is used as collateral for your credit limit.

8. The Application Process

When you apply for a credit card, you usually fill out an online or paper application form and provide information about your identity, employment, income and financial history. (Note that most credit card companies will also do a hard inquiry or hard pull on your credit report to determine creditworthiness.) Note: A hard inquiry will lower your credit score slightly, but there is no other way to get approved.

Conclusion

It’s not just about fulfilling a few simple requirements to become eligible for a credit card. It relies on a variety of factors, such as your age, income, credit score, credit history and what type of card you’re applying for. If you’re unsure whether you’d be eligible or have previously been turned down for a credit card, you can work on improving your creditworthiness by paying down existing debts, building favorable credit history and keeping your credit utilization levels low.