If you are thinking about applying for a credit card, know what it is the creditors will be looking for before they approve that application. Creditors have their list of the three C’s, and those are character, collateral and capacity.
Capacity involves what type of income you have as to repay the loan or credit. This will also involve your dependents, as to how many, if you are currently paying child support or maybe alimony. Your debt to income ratio is on the line here. To determine your character, the creditor will view your credit report and see how you have paid bills in the past. They will note your FICO score and if it is less than the number they will work with, you will be denied the credit.
Collateral will be any other income that you might have. This could be seen as a savings account, property or investments. If you can any of these assets, the creditor will be more comfortable knowing you can liquidate these assets if you come across financial difficulty. Length and time of employment can also play a part as can previous credit and how long you have lived in your home.