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.
How much should I put for annual income for a credit card? ›
While a higher income will generally give you a better chance of being approved for a credit card, there's no set amount of income that will guarantee approval. As stated above, what matters to the issuer is that you can afford minimum payments on your credit card.
How do I qualify for a $10,000 credit card? ›
If you're wondering how to get a high-limit credit card, there are things you can do that may help to boost your approval odds. 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.
What should I put for my annual income? ›
Annual income refers to how much income you earn in one year before deductions. Annual income includes: Wages, salary, overtime pay, commissions and tips or bonuses before deductions. Any Social Security benefits, retirement funds or pensions.
Do credit cards actually check your annual income? ›
Will a credit card company verify your income? Although a credit card company could ask you to provide income verification, this doesn't happen often. In most cases, the credit card company will take your word for it and use your reported income.
How much proof of income do I need for a credit card? ›
The creditor may ask for a pay stub or W-2 so it can verify both your gross and net income and determine whether you can afford to take on new debt. Creditors may also look at other factors as part of the approval process, such as your credit score, job history and housing status.
Should I tell my credit card company my annual income? ›
You aren't obligated to provide information about your income to a credit card issuer unless you are applying for a new card or requesting a credit limit increase. Responding to a card issuer's inquiry about your current earnings can have its benefits if your pay has increased.
What is a good annual income for a single person? ›
An individual needs $96,500, on average, to live comfortably in a major U.S. city. That figure is even higher for families, who need to earn an average combined income of about $235,000 to support two adults and two children.
Does income matter for credit card? ›
Therefore, your income helps issuers determine your credit line and whether or not you'll be able to make payments. The CARD Act does not, however, dictate a minimum income requirement, which means that it's up to the discretion of card issuers to decide.
How much should I say my annual income is? ›
Multiply your gross pay by the number of pay periods you'll have in that year. The resulting number is your annual gross income, or the amount you make before any taxes or other deductions are taken out.
Your annual income calculation should include all the sources of money you earn or receive during a financial year from April 1st to March 31st of the following year in India.
Can you use household income for a credit card application? ›
If you're not currently working, you can use your spouse's or partner's income on your credit application. This can help you get approved while still having a card in your own name.
What is the best annual income for a credit card? ›
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 lie on total annual income for credit card? ›
The bottom line. It is never OK to lie on a credit card application; you may not get caught, but the consequences could be severe if you are. Furthermore, credit card companies institute certain limits based on your financial situation, and these limits can protect you from taking on more debt than you can handle.
What is proof of income for Capital One credit card? ›
Applicants must provide their previous two years' W-2's, and their most recent pay stub. The pay stub must be computer-generated, include year-to-date earnings and taxes withheld, contain no alterations, and must have been issued within 40 days of the faxed date.
What income is too low for a credit card? ›
Broadly speaking, there is no minimum income requirement to get approved for a credit card, as long as your income could easily cover the minimum payments on a relatively small credit line.
What credit card is the easiest to get? ›
NerdWallet's Easiest Credit Cards to Get of June 2024
- OpenSky® Plus Secured Visa® Credit Card: Best for No credit check and no bank account required.
- Chime Secured Credit Builder Visa® Credit Card: Best for No credit check + flexibility and guardrails.
- Mission Lane Visa® Credit Card: Best for Unsecured card for bad credit.
Card issuers use this information to better understand someone's ability to afford a new credit card payment.
When a credit card asks for annual income? ›
It's required by law. Your annual income helps your credit card issuer determine if you're likely to be able to make the monthly minimum payment, before they approve you for a card.
What do I put for annual income if I just started working? ›
It could be the annual salary you agreed to when you accepted your job. If you are paid an hourly wage, on the other hand, you may need to figure out your gross income using last year's tax return or by multiplying your gross weekly income by the number of weeks you work within a year.
Net annual income is the amount you receive after all deductions have been applied and taxes have been paid. This is your gross annual income reduced by items such as federal and state taxes, Social Security, health insurance premiums, retirement contributions, and other deductions.
What to put for annual income for a credit card student? ›
Students can list actual income from a job, regular bank deposits from family members or leftover financial aid as their income on a credit card application. Make sure to be honest about income on an application. Creating or fudging the truth on any information is fraud and can lead to imprisonment or large fines.
What do I put for annual income if part-time? ›
A part-time job can be annualized by multiplying the hours worked per week by the weeks worked per year.
What is a good debt to income ratio for a credit card? ›
35% or less is generally viewed as favorable, and your debt is manageable. You likely have money remaining after paying monthly bills. 36% to 49% means your DTI ratio is adequate, but you have room for improvement. Lenders might ask for other eligibility requirements.
What is a good credit limit for 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.
