Credit card issuers often have a basic set of criteria that is used at the beginning of the application process:

• The card holder is over 18 (sometimes over 21 depending on credit)
• The card holder is a permanent resident of the U.S. or of Puerto Rico
• A certain minimum household income
• A reasonable credit history

However, once these basic criteria have been met, card issuers require a demonstration that you are a good investment. They perform a credit check on your name, which allows them to view a history of your previous credit from third parties and assesses your risk factor. A credit score may be anywhere from 300 to 850, with 300 being the most risky and 850 the most secure in the eyes of lenders. Therefore, a higher number will qualify you for a better loan. A person with a credit score under 500 is unlikely to be able to secure any type of loan.

A credit history is compiled from high street banks and building societies, other card issuers, loan companies and various credit agencies. If you have no previous credit history, you may need to build one up.

If your application for a card has been declined, the card issuer must give a brief reason and the name, address and telephone number of the credit agency that provided your credit history. If you are denied credit, you have the right to receive a copy of your credit report for free from that particular credit-reporting agency.