Can Anyone Get a Credit Card

Credit CardsThingsWho Can Get a Credit Card?

After the credit crises of 2008 getting a credit card has become pretty much complicated and even more so for young adults. But things were quite different in not so recent past, when a credit card was issued even to a tree nicknamed “Never Waste Tree.” As an indispensable attribute of American life as it is, not anyone can get a credit card today.

Legal limitations: credit card issuers are banned from giving accounts to young adults under 21 without a cosigner (CARD Act of 2010). The CARD Act provides that borrowers under 21 can be issued a credit card only in case they are able prove their ability to make payments. The Act, however, doesn’t specify how a card issuer should verify a person’s paying ability. This may as well mean that stating an income can be enough, since it is difficult to document the side income some people have.

Credit score is what credit card companies mostly rely on when deciding whether or not to approve a person for a loan. Since lenders make the decision of who to lend to on their own, even applicants with credit scores as low as 350 can get a card (at least theoretically). Yet, in practice lending standards has grown so tights it is difficult to obtain a credit card, when your score is lower than 600.

Accessible options

Retail cards are a great option for people, who have a poor credit history or none at all. The lending standards of gas stations and department stores are looser than those of traditional banks. Such establishments can even offer some kind of a reward (like a coupon) for signing in. Yet, on the other hand, they feature lower limits and higher premiums than standard credit cards.

Secured cards are a last resort, when you can’t get even a retail card (to say nothing about a credit card). The borrower will be required to put down the minimum of $200-$300 on the credit limit, but the good thing is that secured cards help you build a credit history. If you are accurate with your payments for about a year, the bank may be very much likely to offer your secured card account to be turned to a regular credit card.

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