Qualifying For a Credit Card

There are three main prerequisites for qualifying for a credit card:

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  • Being at least 18 years old.

  • regular source of income.

  • A good credit report.


The first two bullet points are rather self-explanatory, a good credit report, however, deserves further attention. Your credit report is a record of all your past and present debts and the timeliness of their repayment; it documents your credit history.

There are three nationwide credit reporting bureaus that track your credit record:

  • Equifax (800-685-1111, www.equifax.com)

  • Experian (888-397-3742, www.experian.com)

  • TransUnion (800-916-8800, www.transunion.com)


Starting September 2005 these companies will be under law to provide you with a free copy of your credit report, at your request, once a year. Equifax, Experian, and TransUnion are rolling this out over a 9 month period and if you are not yet eligible for a free credit report, you can buy it by contacting the companies. A report may cost up to $9.50 but under state law, residence of Colorado, Georgia, Maine, Maryland, Massachusetts, New Jersey, and Vermont already have free access to their credit card reports.

In order for credit card issuers to look favorably on your credit card application you need to establish a credit history. You usually do this by financing a house loan, car loan, or some other major purchase. If you have not done this you can begin establishing credit by applying for a secured credit card. A secured card requires you to open and maintain a savings account as security for your line of credit. The required savings deposit for a secured card usually ranges from a couple hundred to several thousand dollars. Your credit line is a percentage of your deposit, in most cases somewhere between 50 and 100 percent. One thing to keep in mind is that secured credit cards usually come with application and processing fees.

Another option, if you do not have a credit history and want an unsecured credit card, is to ask somebody with an established credit history to co-sign the account. The co-signer agrees to pay your debts if do not. If you repay your debt promptly you will build credit history and will be able to apply for credit on your own in the future.