What is required to get a credit card?

Unlocking the Path to Credit Card Ownership: Essential Requirements

Obtaining a credit card is not a trivial task, as it entails meeting specific eligibility criteria set by financial institutions. These criteria vary among different countries and institutions, but certain common factors hold true.

Age:

Firstly, applicants must meet the minimum age requirement. In most jurisdictions, the legal age for credit card ownership typically aligns with the age of majority, which is 18 or 19. However, some institutions may impose higher age restrictions for specific types of cards or for individuals with limited credit histories.

Income:

Income plays a pivotal role in credit card approval. Sufficient and stable income is crucial for demonstrating the applicant’s ability to repay debt. The minimum income requirements vary depending on the country and the institution, but generally, applicants with higher incomes have better chances of approval.

VND Income Requirements for Vietnamese Salaried Individuals:

For Vietnamese salaried individuals, the minimum monthly income requirement for a credit card typically stands at VND8 million. This threshold ensures that applicants have the financial capacity to manage credit responsibly.

VND Income Requirements for Foreign Applicants:

Foreign applicants seeking a credit card in Vietnam often face higher income requirements. To qualify, they usually need a monthly income of VND15 million or more. This elevated threshold reflects the higher level of risk associated with non-resident borrowers.

Other Factors Considered:

Beyond age and income, financial institutions also consider other factors when assessing credit card applications. These include:

• Credit history: A good credit history, demonstrating punctual payments and responsible borrowing habits, can significantly enhance approval chances.
• Debt-to-income ratio: This ratio measures the proportion of an applicant’s income that is dedicated to debt repayment obligations. A high debt-to-income ratio can negatively impact approval.
• Employment status: Stable employment with a recognizable employer is another positive factor.
• Collateral: In some cases, institutions may require applicants to provide collateral, such as a security deposit or a lien on property, to secure the credit card debt.

Conclusion:

Securing a credit card requires meeting specific eligibility criteria, including age, income, and other relevant factors. By fulfilling these requirements, individuals can increase their chances of approval and access the benefits of responsible credit card use. However, it is crucial to use credit wisely to avoid indebtedness and maintain a positive financial standing.