Credit cards are a very useful tool that can help anyone better manage their finances. They give you emergency spending power when you need it, the ability to build or repair a credit score, and give you extra flexibility for your purchasing. On the other hand, credit cards can be a big responsibility and if they are not managed properly, can damage your future finances in such a way that they can be difficult to repair.
When you get email offers or direct opportunities to apply for a credit card, it can be tempting to take that lender up on the offer. Are you wondering if you might qualify for a new line of credit? Here’s how you can find out.
You Must Be At Least 18 Years Old
The first qualification for a credit card is age. If you are not at least 18 years old, then you will be automatically denied for a credit card unless very specific and unique conditions are met. Even though you might be flooded with offers, it is also important to remember that these are pre-approval offers, not a guarantee. It means that you satisfy some of the risk requirements for the lender, but you’ll need to prove the financial requirements that are necessary for the card to be issued.
You’ll also need to have at least some form of established credit history in most instances. Times have changed over the last 20 years or so and student cards are just handed out to kids at the university simply
because they can be. You must be able to show that you’ve responsibly managed credit at least once in the past to get an unsecured credit card.
If you don’t have an established credit history, you’ve got two options: look for a secured credit card where you’ll pay a deposit for your line of credit or have someone with good credit co-sign on the application with you.
Why Is Having a Credit Card So Important?
For a long time, having a credit card was more about having access to flexible spending more than anything. Today, however, your credit score can help or hurt your chances at getting a job, finding a place to live, or even getting insured. If you don’t have good credit or you’ve never established a credit history as of yet, then life can be harder than it needs to be.
If you do end up getting turned down, even if you feel like you qualify, it means that you didn’t meet at least one specific requirement. If you know that you will qualify, however, it is important to shop around with the many different lenders throughout Canada so that you can find the best credit card with the best rewards program and interest rates for you.
It is your history of good financial decisions, combined with your age, that qualifies you for a credit card. If you’re at least 18 and have been paying bills on time, then you have a good chance to be approved for an excellent credit card.