Some Companies Have A Minimum Annual Household Income

Category: Finance.

For the most part, credit card applications are fairly identical in what they want to know about you and your finances. Knowing in advance what the company will be looking for and improving those areas( whenever possible) before you actually apply to the company can improve your success rate.

There may be some differences, depending on the company and the level of credit that you are seeking, in general, but, there are some things that all card issuers will want to know before they approve you for one of their credit cards. The following are some of the items that most( if not all) credit card companies will look at during their decision process. There was a time when buying a home was looked upon more favorably than renting a home, but that is changing. Rent or Own: This is one of the standard questions that you see in almost all applications. Due to the increase in home foreclosures the advantages that buying had over renting are diminishing. You cannot lie about this and get away with it. When it comes to answering this question, be truthful.

Just be honest about it and understand that many renters get credit lines just as home buyers do. Employment is another question that is usually asked of applicants. One caveat to this is that if you are in the works of moving from renter to owner you may want to wait until you have closed your home buying deal before applying for a new credit card. Again, do not lie about this. If you believe your monthly income is too low, find a part time job so that you can include that added income in the household financial information that they are sure to ask about on the application. If you are unemployed and have no other source of income hold off on the application until you find work. Speaking of household income, this is yet another of the most popular questions asked on credit card applications.

Some companies have a minimum annual household income. This is one of the most important questions on the application and much will be decided based on the answer you give. If you fall below this amount you will be denied. Often you can find this cut off amount on the application itself so look for it. It is that simple. Annual household income includes anything that brings in money to the home.

It is not a good idea to make up sources of income but do include the income that you honestly receive. If you have income from stock dividends, income from part time jobs or other sources include that on the application. If you are on the short list for a raise at work, wait until you get that raise before submitting your application. The more income you can state on the application, the higher your credit limit will be( in most cases) . Keep in mind that aside from approving or denying the application, your household income amount is also used to determine the credit limit that the company will give you. The last thing you should do in your pre- application process is reduce your debt as much as possible.

Even if the loans are small, paying them off shows the credit card company that you are financially astute. If you can pay off some loans, do so.