If you’ve ever wondered if you’re credit card worthy, you’re not alone. You all want to know if you’ll get approved for a new line of credit or whether you can finally take out that car loan. The good news is that it’s actually quite easy to find out whether or not your credit score is up to par.
You should also be able to pay a credit card processing fee if applying for a credit card. According to experts like SoFi, “A credit card processing fee describes all of the fees charged to take credit cards as a form of payment. These, which are incurred by merchants that accept credit card payments, include interchange fees, payment processor fees, and assessment fees.”
Do you have a bank account?
If you have a bank account, this is a great sign. The good news doesn’t stop there: if you’re able to pay bills online or by check at the local post office, and if you can deposit checks in your account without any trouble (aka not bouncing them), then that’s even better!
Are you 18 years or older?
- You must be 18 years or older to apply for a credit card. If you are under 18, you will need a parent or guardian to apply for the card on your behalf.
- If you are under 18 and want a credit card with no annual fee, check out our list of teens’ best no annual fee cards.
Do you have a steady income?
If you’re like most people, you don’t have enough cash on hand to pay off your credit card balance in full and still have enough left over to enjoy life. That’s where the interest rates come in—and why they can be so punishing.
The simplest way to qualify for a credit card is simply by having a steady source of income and proving it with pay stubs or tax returns. If you’re self-employed, however, things are more complicated: lenders will want proof that your business has been active for at least two years and isn’t just a hobby. And if you’re still in school? You’ll need proof of some kind that shows that this is the case—a letter from your dean or advisor will do nicely!
Do you pay your bills on time?
A good credit score means that you’re likely to pay back your debts in full and on time. But if you haven’t been thinking about making payments on time, you need to understand why this is so important and how you can take help.
Suppose your credit card utilization ratio is high. In that case, that means that the amount of money that you owe via credit cards is higher than the amount of available credit on those cards—and they’ll be less likely to lend money to someone who has such a large balance already (it’s risky).
Have you successfully paid off a credit card or loan?
Credit scoring is based on your ability to pay back a loan, and the longer and more successfully you do so, the better. So if you’ve paid off one of your debts before (and it was reported to the credit bureau), that will help improve your score. Checking in with AnnualCreditReport.com is another way to see what information is being used against you—and, therefore, how much of an impact it’ll have on future loans. If you answered “yes” to all of the above questions, congratulations! You are credit card worthy.
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