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.
What annual income should I put for credit card? ›
Maria Adams, Credit Cards Moderator
What you should put for annual income when filling out a credit card application is the total income you receive and have access to in a calendar year. This includes personal income, gifts, retirement income, income from investments, Social Security payments, and more.
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.
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.
What's a good annual income? ›
A Smart Asset report based on MIT's Living Wage data found that the average salary required to live comfortably in the U.S. is $68,499 after taxes. This is nearly $10,000 higher than what the average salary currently is.
What should I put as my annual income for a credit card as a student? ›
In fact, when applying for a credit card as a student, you may include any current or reasonably expected income that proves you have the ability to pay the issuer back. This includes both your direct income and as well as regular stipends or allowances that you receive.
Is $10,000 a year enough to get 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.
How do I qualify for a $10,000 credit card? ›
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 should my credit card limit be based on income? ›
To figure out your DTI, simply divide your total monthly debt by your gross monthly income—the lower your percentage, the better. Many lenders prefer a DTI below 36%. A lower DTI paired with solid income could unlock a higher credit limit.
Annual income is the amount of money you make in a year. It can be expressed as annual gross income or annual net income, but these differ. Annual gross income is what you receive before taxes and other deductions. And annual net income is the amount that's left after taxes and other deductions are taken out.
How much is $18 an hour annually? ›
If you make $18 an hour, your yearly salary would be $37,440.
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 a good 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.
What is the annual income for Capital One? ›
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. Capital One Financial annual net income for 2021 was $11.965B, a 403.79% increase from 2020.
What if you lie about annual income on credit card? ›
When you add false information to a credit card application, you are committing a form of credit fraud, a federal crime that carries serious repercussions that could include: Being unable to file bankruptcy or charge off debts. Owing immediate repayment of the loan.
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 counts as annual income? ›
Your annual income includes everything from your yearly salary to bonuses, commissions, overtime and tips. You may hear it referred to in two different ways: gross income and net income. Gross annual income is your earnings before tax, while net annual income is the amount you have after deductions.
How much of your monthly income should go to credit card payments? ›
But ideally you should never spend more than 10% of your take-home pay towards credit card debt. So, for example, if you take home $2,500 a month, you should never pay more than $250 a month towards your credit card bills.
