How long after new employment before applying for a new credit card?

Question

I am a recent grad and new employee. I currently only have a $500 student Visa credit card with my current bank branch (2 years).

I began my employment at the end of January (just over 2 months ago) and I am making a salary of $57,000. With some other income, I will make over $60,000 this year (which is the minimum limit for the Capital One card).

I checked my Equifax credit score and I get anywhere between 750-795 depending on how much is remaining on my Visa card, which I pay off in full every month.

I am interested in getting one of the following cards:

• Capital One Aspire Cash Back Mastercard

• Scotiabank Momentum Visa

My question is: How long should I wait, if at all, to apply for one of these cards? I want to make sure I have a decent chance of being approved, and I don't want to unnecessarily increase my credit checks if I have zero hope of getting approved. I don't plan on closing my other card because it is my oldest account. Please note: I'm from Canada.

Answer 1

So, there is no way I (or anyone) can provide an exact answer. Policies for approval are somewhat obfuscated by the companies and also change widely on the market and by company.

But as a general statement, employment and income are largely self reported and your credit score is good. I think 30 days after hire would be more than enough. At this point in your life they are more interested in the consumer loyalty of a gainful employed young person than the small chance you might lose your job or lie about your income. They might not give you a high limit, but I suspect it would be approved if applied. And it is probably best to establish your larger limit sooner rather than later.

Answer 2

So I decided to wait until I could honestly fill out my application with 3 months of employment before I applied.

I was instantly declined for the capital one card which I think is a more premium card (no fee + 1.5% cashback req salary>60,000).

I applied for the Scotiabank card ($39 fee + 2% or 1% cashback) and was instantly approved.

So hopefully this is useful to someone in the future.

Answer 3

Acceptance for a credit card is determined by a number of factors, the majority of which combine to form your credit score. If you have a track record of responsible borrowing, you will be rewarded with lower interest rates. After a few months of work experience, I was approved for my HDFC Bank credit card because the only thing required with the application was the monthly income that met their eligibility criteria and a few months of work experience.