Your credit history consists of many factors and one of the most important factors that affect Credit Card eligibility is your employment history. Your employment history gives information about your financial stability, income range and repayment capacities, which issuers use to determine your creditworthiness.
Additionally, it helps them confirm your identity and reassures them of your qualifications when you apply for a Credit Card online.
Since your employment history has a significant impact on your Credit Card eligibility and score, let us understand more about it in detail.
Significance of employment history on Credit Card eligibility
The following factors demonstrate the impact of employment on fulfilling Credit Card eligibility criteria:
Income stability
Your employment history gives the issuer an insight into financial stability, which helps them determine your creditworthiness and repayment capacity. Banks consider this primarily before issuing Credit Cards to any applicant. Thus, many types of cards have “income” as one of their Credit Card eligibility criteria.
Hence, individuals with a stable income and employment history are more likely to secure a Credit Card and fit well into the qualification criteria.
Credit repayment
Individuals with better employment histories and stable incomes are more likely to repay their credit dues on time. This makes them more favoured by banks when they apply for a Credit Card. Unemployed status makes it difficult for lenders to trust the applicant with their repayment abilities.
Employment type and tenure
The type of employment, such as part-time, full-time, contract or freelance and the length of employment also play important roles in determining Credit Card eligibility. Issuers may prefer applicants with long-term job tenure and full-time employment status over those who have unstable employment.
Additional sources of income
If you have an additional source of income, such as investments, freelance roles, or a second part-time job, you can make yourself a reliable candidate for getting an instant Credit Card online. Showcasing more than one stream of income strengthens your eligibility to get a Credit Card.
Additional benefits of employment history on Credit Cards
Quick approval
A solid employment history not only increases your chance of qualifying for Credit Card eligibility criteria but also makes the application process easier and quicker. Since it provides lenders with proof of income and showcases stability, it can speed up your Credit Card application.
Higher credit limit
Depending on your employment history and income details, your credit limit is determined. The better the employment status and the higher the salary, the higher the credit limit.
Higher credit utilisation
With a stable employment history and income, you can have access to a higher credit utilisation ratio, making Credit Cards more beneficial and accessible for them. This creates an impression that your expenses are well-managed resulting in an improved credit score.
Conclusion
Securing an instant Credit Card online depends on several factors, including employment history, that determine your creditworthiness. Your employment history determines your repayment ability, boosts your chances of qualification when you apply for a Credit Card online and improves your credit score.
