Will a Good Income Get Me a Bank Credit Card?

When you apply for a bank credit card, you are essentially applying for a loan with a flexible, also called revolving, line of debt. To qualify for this loan, you have to prove to the bank that you are a low-risk borrower. Though banks use different methods to determine how credit-worthy you are as a borrower, most will start with your income as a primary factor.

Income

When you apply for a bank credit card, the bank typically asks you to detail your income. This includes income from almost any source, such as wages, retirement benefits or income from rental properties and real estate. Regardless of the source of income, the bank wants to know this information in order to determine your ability to pay back the money you borrow.

Credit Score

Apart from your income, banks issuing credit cards also inspect your credit report and your credit scores. Your credit score tells the bank how well you've used credit in the past. With a high score and a high income, you'll have little difficulty obtaining a bank credit card. However, if you have a high income and have a low credit score, it may be much harder for you to get a credit card or to obtain a card with a competitive interest rate.

Credit Limit

If you have a high income and apply for a bank credit card, you have a much better chance at obtaining a higher credit limit. In the same manner in which a bank evaluates your credit worthiness, is also evaluates how much money it should make available to you on the credit card. This is known as a credit limit, or credit line. In general, banks issue credit cards with the highest credit limits to those borrowers who have both a high income and a high credit score. If either of these is low, you are unlikely to get a high credit limit.

Improving Your Odds

Even if you have a high income, a bad credit score could prevent you from getting a card at all, or only allow you to get a card with high interest rates or fees. In order to qualify for a better card, you have to prove to lenders that you are responsible. You do this by engaging in responsible borrower activity, such as paying all your bills on time. Once you raise your credit score, you can then get a better deal on credit cards.