Discover whether you earn enough to qualify for a credit card, and compare low income options.
When you apply for a credit card, your income is an important factor that the issuer will use to determine whether you qualify for a credit card. But just how much income must you earn to be approved? And what other factors might be considered? This guide will answer those questions and more. Find out if you’re likely to be approved for a credit card, and then compare your options.
Now let’s answer that question …
Is there a minimum income requirement to get a credit card?
The answer is, not exactly. Before the Recession of 2008, credit card companies would give cards to anyone, even those with no income. But that all changed when the Credit CARD Act of 2009 put new provisions in place to protect consumers. Although the Credit CARD Act does not set minimum income requirements, it does restrict credit card issuers from extending credit to someone who does not have the ability to make the required payments under the terms of the credit card account. But what exactly does that mean?
Simply put, a credit card issuer must take into account your ability to repay the debt. In order to determine someone’s eligibility, the card issuer will weigh several factors, including income. Specifically, issuers will look at your debt-to-income ratio