Polarlens.eu.org - Obtaining a credit card is not as simple as filling out an application and receiving immediate approval.
Credit card issuers have specific criteria to consider when approving an applicant's application, especially for those who are new to credit cards.
To increase your chances of being approved for your first credit card, follow these effective steps.
Before applying for a credit card, it's important to understand how to meet the requirements or criteria for obtaining one.
By familiarizing yourself with the criteria, your credit card application is more likely to be approved.
Here are some standard criteria that you need to know as one of the ways to easily get approved for your first credit card.
Ensure You Meet the Age Requirement
This is the first criteria that you need to understand. There is a minimum age to get a credit card. It's important to note that each issuing bank has different minimum standards. Legally, the minimum age to obtain a credit card is 17 years old.
However, there are some banks that require applicants to be at least 21 years old. If you don't meet this age requirement, your application will be automatically rejected.
Although some banks allow applicants below 21 years old to apply, they still need to have a steady source of income to get approved.
While there is no set rule that you must have a full-time or steady income to get a credit card, it's done to minimize the risk of the cardholder being unable to pay their credit bill.
Having Your Own Income
As mentioned in the previous point, you must have your own source of income to be eligible for a credit card.
This income can be from your salary if you are an employee of a company or from your business if you are an entrepreneur.
Credit card issuers no longer consider household income when reviewing credit card applications. This means you cannot include someone else's income (like your parents') on your credit card application.
Having a reliable source of income gives you the ability to pay your credit card bills. It's not just about having a source of income, but also having a monthly income that is high enough for the requested credit limit.
Therefore, sometimes being an employee is prioritized by credit card issuers for approval compared to being an entrepreneur who carries more risk.
Having an NPWP
Having a Tax Identification Number (NPWP) is currently a mandatory requirement for most credit card issuers. Having an NPWP indicates that you are also a taxpayer who has an income.
Having a Positive Credit History
Having a good credit history will greatly help in getting approval for a credit card. If you have a bad credit history, such as having debt other than a credit card (such as a personal loan), then this is a consideration for the bank to accept your application.
Moreover, if you are a first-time credit card applicant, the better your credit score, the higher the chances of your credit card application being approved.
Some credit card issuers only approve applicants who have a clean credit report. You can check this credit report at OJK's SLIK.
At least you don't have a history of delinquencies. If you do, clean up those delinquencies first before applying for a credit card.
Having a negative credit history at one financial institution can burden your application at other banks.
Avoid Having Too Much Debt
If you have debt/loans, such as a personal loan, credit card issuers will consider the amount of your balance and loans before approving your application. If your debt is too high, your credit card application is likely to be rejected.
Especially if this is your first credit card. On one hand, credit history is indeed important. But, on the other hand, high debt is also a fundamental consideration for approval.
Credit card issuers can compare your debt to your income and decide whether you are capable of paying off the credit card balance based on your other debt payments.
A high debt-to-income ratio indicates that you do not have enough income to pay off a new credit card balance.
Those are some basic criteria that need to be known before applying for a credit card. Next, we will discuss how to apply for a first credit card to make it easy to approve.
At least, there are several effective tricks to make your credit card application easy to be accepted by the bank.