A good annual income for a credit card is more than $39,000 for a single individual or $63,000 for a household. Anything lower than that is below the median yearly earnings for Americans. However, there’s no official minimum income amount required for credit card approval in general. It varies by credit card company and from individual card to card.
For example, the Capital One Venture Rewards Credit Card requires at least $425 more in income per month than you spend on rent or mortgage payments. Generally, the top 10 issuers either have no minimum income requirements or do not publicly disclose that information.
Reasons Why Income Is Required
By law, credit card companies are required to ask for your income. Lenders can only issue you a credit card if they’re confident you can make at least the minimum monthly payments and that you have the ability to repay any balance you may incur. In addition to employment income, you should also report any alternative sources of income. This includes alimony, Social Security or pension payments, and investment income, among other sources.
Applicants under 21 years old can only report “personal income.” This may include money earned from a job, of course, as well as things like investment income, inheritance distributions, or even an allowance that someone regularly deposits into your bank account. You cannot include your parents’ income unless they co-sign for your card, and major issuers don’t allow co-signers anymore. If you’re over the age of 21, you can add in someone else’s income that you may have reasonable access to, such as the salary of a working spouse.
There’s still another part of the equation, and that’s how much debt you have. Issuers will review your debt in relation to your income to determine how much more you can afford to borrow and how risky you would be as a borrower. Issuers set your credit limit based on this information and other factors like your credit history. There’s no specific cutoff for credit cards, but you’ll want to maintain as low of a debt-to-income ratio as possible.
Finally, you should always be honest and accurate when reporting income on a credit card application. Knowingly entering false info is illegal.
This answer was first published on 12/11/20 and it was last updated on 01/08/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
A good annual income for a credit card is more than $39,000 for a single individual or $63,000 for a household. Anything lower than that is below the median yearly earnings for Americans. However, there's no official minimum income amount required for credit card approval in general.
Can you get a credit card with an annual income of 15000? ›
The best credit card for a $15,000 salary is the OpenSky® Plus Secured Visa® Credit Card because it has a $0 annual fee. The OpenSky® Plus Secured Visa® Credit Card is also very easy to qualify for because it does not require a credit check for approval. The card has an 87% approval rate, according to the company.
What do I put for annual income? ›
Annual income is the total amount of money you earn during one year. It includes your salary and other payment sources such as Social Security checks and welfare assistance.
What is a good credit limit for my income? ›
If you're just starting out, a good credit limit for your first card might be around $1,000. If you have built up a solid credit history, a steady income and a good credit score, your credit limit may increase to $5,000 or $10,000 or more — plenty of credit to ensure you can purchase big ticket items.
How to answer an annual income question? ›
8 tips on how to answer salary expectations in an interview
- Search online for salary ranges in your field and location. ...
- Talk to people in similar roles. ...
- Consider what you need to live. ...
- Take into account other monetary or lifestyle benefits. ...
- Know when to encounter salary expectation questions.
Income is an important part of what you report to issuers on a credit card application. Exactly what makes up that income may differ — some may ask for the actual sum of money you bring home before deductions and taxes are taken out (gross income) or after (net income). Take the time to provide an honest estimate.
What is the annual income for Capital One? ›
Capital One Financial net income for the twelve months ending December 31, 2023 was $4.582B, a 34.95% decline year-over-year. Capital One Financial annual net income for 2023 was $4.582B, a 34.95% decline from 2022. Capital One Financial annual net income for 2022 was $7.044B, a 41.13% decline from 2021.
What is the annual income for $20 an hour? ›
$20 An Hour Salary in California. $59,600 is the 25th percentile. Salaries below this are outliers. $72,600 is the 75th percentile.
What is the annual income for $22 an hour? ›
Frequently Asked Questions. $22 an hour is how much a year? If you make $22 an hour, your yearly salary would be $45,760.
Does annual income matter when applying for a credit card? ›
Credit card companies look at your annual income to determine how much credit you can afford and to assess their risk in extending you credit. Some may specify how they wish you to calculate your annual income, frequently asking for gross or net income.
To get approved for high-limit credit cards, you'll most likely need to have good or excellent credit and a steady income to support a higher credit limit. Picking the right card is important, too. You may be able to find the minimum starting credit limits listed in some cards' terms and conditions.
What is the credit card limit for 30k salary? ›
The min and max credit card limit in India for an applicant earning ₹30,000 a month is based on a variety of factors. However, issuers offer a minimum limit of 1.5 times and a maximum of 3 times the salary. This comes to a credit limit between ₹45,000 and ₹90,000.
Is $20,000 a good credit card limit? ›
Yes, $20,000 is a high credit card limit. Generally, a high credit card limit is considered to be $5,000 or more, and you will likely need good or excellent credit, along with a solid income, to get a limit of $20,000 or higher.
Which credit card is best for a 15k salary? ›
Some of these Credit cards, their joining fee and benefits are given below
| YES Bank Prosperity Reward Plus Credit Card | Rs.0 | Rewards |
|---|
| SimplySAVE SBI Card | Rs.499 | Daily Shopping |
| HDFC Bharat CashBack Card | Rs.500 | Cashback |
| HDFC Freedom Card | Rs.500 | Rewards |
| HDFC Diners Club Rewardz | Rs.1,000 | Rewards and travel |
4 more rowsSep 9, 2022
You may not need to earn a specific minimum income to qualify, for instance, but card issuers may look at indications that you can afford expenses like rent or a mortgage. And your income — and how it compares to your other monthly payment obligations — can affect the credit limit you qualify for.
How to get a credit card with low annual income? ›
Consider a secured card – If you have the cash to put down an up-front deposit, a secured credit card is a good choice. You'll be tapping a credit line, so your credit score will improve if you use the card responsibly.
Can you get a credit card with 20,000 income? ›
The best credit card for a $20,000 salary is the OpenSky® Plus Secured Visa® Credit Card because it has a $0 annual fee. The OpenSky® Plus Secured Visa® Credit Card is also very easy to qualify for because it does not require a credit check for approval. The card has an 87% approval rate, according to the company.
