Credit History and Income

• Credit card companies issue cards and determine credit limits based on applicants' credit histories and incomes. Your credit history is reflected on your credit report, and information on your credit report is used to calculate your credit score, which is a measure of your creditworthiness. If you have a high credit score and a history of responsible borrowing that includes paying your bills on time, you have a better chance of obtaining a card with a low interest rate and high credit limit. The same holds true if you have a stable income that covers your living expenses and leaves money for discretionary spending. If you have a low income, are unemployed or have a spotty credit history, credit card companies are more reluctant to issue you a card because of the increased risk that you won't make your monthly payments.
  
  

Application Process

• Credit card companies issue cards following an application process, which includes several steps. Applicants must supply their contact information, their Social Security number for credit checks and their employment status and income. In some cases, credit card companies issue approval instantly using an automated system that reviews an applicant's basic information. Even so-called instant approval cards may require additional processing, which can delay a card's issuance for several days. Cards are only issued to applicants who meet eligibility criteria for a specific card and who supply the required information.
  
  

Business Credit Cards

• Businesses can apply for credit cards using a similar process. Credit card companies issue business credit cards based on a company's revenue history, cash flow and credit history, all of which indicate the business's ability to repay credit card debt. As with some individual credit cards, business credit cards sometimes have an annual fee cardholders must pay. Business credit card accounts may provide several cards so employees can make charges to the account as needed.
  
  

With a Security Deposit

• Some credit cards, known as secured credit cards, are only issued after you make a cash deposit with the company or institution issuing the card. If a loan is secured, it means it has collateral backing the debt, and in the case of a secured credit card, the collateral is the cash deposit. The cash deposit ensures the credit card company can recover its loss if you fail to make the required payment. You may not need to submit to a credit check or meet income eligibility guidelines to obtain a secured credit card, which is why it is often sought by people with poor credit. However, the card can still help you build a credit history so that you eventually can obtain an unsecured credit card with a higher limit, lower interest rates and no deposit requirement.