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Wallet Canvas > Wealth Solutions > What income do I need to earn a credit card?
Wealth Solutions

What income do I need to earn a credit card?

June 4, 2025 10 Min Read
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What income do I need to earn a credit card?

Getting a credit card opens up as many possibilities as the opportunity Create a credityou’ll get immediate access to your funds, earn top rewards and more.

The only thing standing between you and these opportunities is the approval of the credit card application. And to get that approval, you usually need to answer questions about your annual income. If you are a student or a home spouse or partner, or if you are unemployed, have no income or are low, reporting your income on a credit card application can cause anxiety.

But you should not protect you alone Apply for a credit card. What counts as income and the amount you need to qualify for a credit card may surprise you. Discover what you need to know about credit card income requirements.

Card method and income conditions for card applications

Annual Income Questions were introduced in the 2009 Credit Card Accountability and Disclosure Act (Card Act))) As a way to protect consumers after the Great Recession.

Card method State: “Card issuers cannot open a consumer credit card account with an open-ended consumer credit plan unless the consumer’s ability to make necessary payments based on the terms of such account.”

Under the Card Act, card issuers can ensure that the cardholder can afford to repay the balance, or at least keep up with the minimum payment. This is calculated monthly based on your card’s outstanding balance. Therefore, your income will help the issuer decide you Credit Line And whether you can pay.

However, the Card Act does not determine minimum income requirements. In other words, it is up to the card issuer to decide.

Factors that can affect your credit card income requirements

The tricky part of the applicant is that the card issuer usually does not disclose minimum income requirements, as income is the only incomplete measure of the applicant’s financial well-being. This is just one of the ability of a cardholder to make minimum payments, known as the debt-to-revenue (DTI) ratio.

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Debt to income ratio

your Debt to income ratio It shows how much money you owe and how much you earn. If you have a great living, but you have too much debt, you may be denied because of your credit card.

So what is considered too much?

Credit card issuers determine their own requirements for DTI ratios, but the Consumer Financial Protection Bureau (CFPB) Maximum DTI ratio: 43% Eligibility for a mortgage. However, CFPB recommends that homeowners maintain their DTI ratio. Under 36% And the tenant will keep the DTI ratio below 15-20%. These numbers are usually considered on credit cards.

you can Calculate the DTI ratio By dividing monthly debt (car payments, child support, mortgage payments, alimony, student loans, etc.) by monthly income.

If you have no credit history or bad credit and are unsure whether you can meet your minimum monthly payment, you can consider applying. Credit cards for non-credit or bad peoplelike Secure credit cards. These types of cards usually require you to pay upfront a refundable security deposit, which acts as a credit limit.

Student status

If you are a registered student at a university or university, including a two-year university, you have the opportunity to apply. Student credit card. These credit cards are powerful tools for building credits when used responsibly, and their requirements differ from traditional cards. Credit card issuers have a variety of rules and guidelines Showing income as a studentthis is mainly age dependent.

For those aged 18 to 20, they usually need to provide evidence of independent income or have a guarantor (usually a parent or guardian) who can guarantee payment. In addition to earnings from work, you may be able to count the regular allowances and money left from grants and scholarships after tuition is paid.

If you’re a student over 21, you probably won’t be able to do it Get a credit card with a co-signer. Instead, you can show income from part-time or full-time employment (hint count), self-employed, repeated gifts or allowances, spouse or partner income, and remaining funds from scholarships and grants.

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Issuer-specific policies

The Card Act does not set income requirements. This means that these requirements are at the discretion of the card issuer. Some issuers have specific minimum income requirements, debt-to-revenue ratios and minimum credit limits, all of which affect their ability to obtain a credit card.

Capital One, for example, requires applicants to earn at least $425 more than their monthly mortgage or rent payments. Capital One Savor Cash Rewards Credit CardAccording to the publisher terms of service For this card at the time of writing.

Wells Fargoautograph® CardMeanwhile, according to the card, the overview of the $1,000 minimum credit limit terms of service At the time of writing. Therefore, if your income is too low and you are not approved with a monthly credit limit of $1,000, you may be denied with this type of card.

What happens if you lie about your income on your credit card application?

You should not lie about your income on your credit card application. The issuer can cancel your card if it turns out you are lying. Furthermore, if you receive approval for a card you cannot afford to pay back, you will be in debt. It will discredit youIt can prevent you from renting a house, approving a mortgage, opening another credit card, approving loans, etc.

Lie in a credit card application It can even result in up to 30 years of prison hours and a fine of up to $1 million.

Acceptable sources of income for credit card applications

Earnings from full-time jobs are not the only ones that count as income from credit card applications. You can usually consider any of the following within you Annual net profit:

  • Earnings, wages, tips, or freelance jobs from full-time or part-time jobs

  • Spouse or partner income (Home income)

  • Unemployment benefits (sometimes accepted)

  • Child support, compensation or individual maintenance income

  • Grants and Scholarships

  • Social Security Income

  • Retirement Funds and Pension Distribution

  • Savings account assets

  • Gifts (sometimes accepted)

  • allowance

  • Trust in the distribution of funds or inheritance assets

  • Investment return

See also  Credit card application rules by issuer

It is also important to note that there are several sources of income that are unacceptable in credit card applications. The following are not counted in annual net income.

  • loan

  • Your parents or guardian income

  • Non-cash support (utilities, etc.)

  • Several types of financial aid

  • One-time gift

Can I get a credit card if I don’t have a job?

Yes, you can get a credit card if you are unemployed, but your approval depends on the card you apply for and the issuer’s rules surrounding the employment. In general, card issuers are interested in their ability to repay credit card bills regardless of employment status, but they may have been asked in their application. If you can still provide proof of your income, such as monthly allowances and grant payments, that may be sufficient for the issuer.

You can also apply for cards with fewer strict income requirements, such as secured cards.

Conclusion

While the card law states that cardholders must be able to afford to pay for credit card payments, issuers can set their own income requirements that are generally not publicly disclosed. When deciding whether to approve an application, Credit card issuer Factor your income to your debt-to-income ratio. In this way, they can determine if you can make the minimum monthly payment.

There are also many income streams that allow you to consider your net annual income in your credit card application beyond traditional wages if you have no income, receive government assistance, or are a student.

However, don’t forget to consider the type of card you are applying for, as the possibility of approval is best. Secure credit cards and Student credit cardFor example, there are usually more loosely earning requirements than premium cards.

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