Find out how you can get a credit card without having to prove that you have income. Make sure your application is taken seriously!itle -->
So you’re fresh out of college and looking to start building your credit, but there’s one small problem—you don’t have a job. Or maybe you’ve been unemployed for a while and are struggling to get by. Either way, not having a steady income can make it difficult to get approved for a traditional credit card.
Fortunately, there are still options available to you. In this blog post, we’ll run through a few of the best ways to get a credit card without employment. With a little bit of persistence and some good financial planning, you can start building your credit—and your future—today.
How to get a credit card without employment
1. Include all sources of income
When you’re applying for a credit card, the credit card companies is going to want to see that you have a steady source of income or proof of income. This doesn’t necessarily need to be employment income; if you have other sources of income such as investments or child support, make sure to include them in your application.
2. Include your spouse’s income on your application
If you’re married or in a long-term relationship, the income of your spouse or partner can also be taken into account when applying for a credit card.
This is especially useful if your spouse has a good credit score—issuers may be more likely to approve your application if they can see that you have access to additional funds.
>>Read More: 10 Best Credit Cards With No Employment Check | Get a credit card without a Job!
3. Look for a co-signer
If you’re having trouble getting approved for a credit card on your own, another option is to look for a co-signer. A co-signer is someone who agrees to take on responsibility for your debts if you default on them.
This can be a family member or friend with good credit who trusts that you’ll make your payments on time.
Keep in mind that defaulting on your debts will damage not only your own credit score but also the co-signer’s, so it’s important to only use this option if you’re confident that you can meet your obligations.
4. Get a secured credit card
A secured credit card is another type of credit card that can be easier to get approved for if you don’t have employment income. With a secured card, you open an account with the issuer and deposit money into it; that money then serves as collateral in case you default on your payments.
Because the issuer has less risk involved, they may be more likely to approve your application—and as a bonus, using a secured card responsibly can help improve your credit score over time.
5. Use a credit builder loan
A credit builder loan is just what it sounds like: a loan that helps you build up your credit history by reporting positive payment activity to major consumer reporting agencies (Experian, Equifax, and TransUnion).
Credit builder loans are typically offered by small banks or credit unions, so it may take some digging to find one in your area.
But if you can qualify for one of these loans—usually by making regular deposits into savings account over several months—it can be an effective way to improve your chances of getting approved for other types of loans down the road, including auto loans and mortgages.
6. Try a subprime card issuer
Subprime issuers are companies that specialize in offering credit cards to people with poor or limited credit histories. Because these issuers are used to working with high-risk borrowers, they may be more likely to approve your application even if you don’t have employment income.
Just keep in mind that these cards often come with high-interest rates and fees, so it’s important to understand the terms before signing up.
7. Become an authorized user
If someone close to you—a parent, sibling, spouse, friend or family member —has good credit, you may be able to get them to add you as an authorized user on their account. As an authorized user, you’ll receive your card linked to their account, allowing you to piggyback off their good payment history. This can help improve your chances of qualifying for other types of loans down the road.
There are several options available for getting a credit card without employment income. The best option for you will depend on your circumstances and financial goals.
>>Read More: How to Remove an Authorized User from a Credit Card: The Definitive Guide
Can’t Get a Credit Card? Here Are 3 Alternatives That Might Work For You
If you’ve ever applied for a credit card and been denied, you’re not alone. In fact, according to a recent study, nearly 30% of Americans have been denied a credit card at some point in their lives.
If you find yourself in this situation, don’t despair; there are still several options available to you.
Here are three alternatives to traditional credit cards that might work for you.
1. Get a Debit Card With Credit Card Benefits
One option you might consider is getting a debit card with credit card benefits. Many banks and financial institutions offer debit cards that come with features such as cashback rewards, purchase protection, and even insurance.
While you won’t be able to build up your credit history with one of these cards, it can still be a useful tool to have in your wallet.
2. Consider a Prepaid Card
If you’re looking for an alternative to a traditional credit card but don’t want to get a debit card, another option you might consider is a prepaid card.
With a prepaid card, you can load money onto the card and use it anywhere that accepts credit cards. One thing to keep in mind, however, is that prepaid cards often come with fees, so be sure to read the fine print before signing up for one.
3. Get a Secured Credit Card
If you’re having trouble getting approved for a traditional unsecured credit card, another option you might consider is a secured credit card. A secured credit card requires you to put down a security deposit, which is typically equal to your credit limit.
So, if you have $500 in savings, you could get a secured credit card with a $500 limit. One thing to keep in mind with secured credit cards is that they typically have high-interest rates and fees, so be sure to shop around before applying for one.
While being denied a traditional credit card can be frustrating, there are still several alternatives available to you.
By considering one of the options above, you can still enjoy many of the benefits of having a credit card without actually having one.
>>Read More: Best Secured Credit card
Should You Get a Credit Card If You’re unemployed?
Getting a credit card while unemployed may seem like a good idea, but there are some things you should consider before you apply. Look at some of the pros and cons of getting a credit card while unemployed.
The Pros of Getting a Credit Card While Unemployed
There are some benefits to getting a credit card while unemployed. For example, if you have good credit, you may be able to get a card with a 0% APR introductory period. This can give you some breathing room if you need to make a large purchase or consolidate debt.
Additionally, having a credit card can help you build or rebuild your credit score. If you use your credit card wisely and make your payments on time, you can improve your credit score, which can give you access to better rates in the future.
The Cons of Getting a Credit Card While Unemployed
There are also some drawbacks to getting a credit card while unemployed. For one thing, if you’re not employed, you may have trouble qualifying for a credit card. Additionally, if you do qualify for a credit card, you may end up with a high-interest rate and/or fees.
Additionally, if you mismanage your credit card while unemployed, it could damage your credit score, which could make it more difficult to get approved for loans in the future.
So, should you credit card with no job? It depends. If you have good credit and can manage your finances responsibly, then it may be worth considering.
However, if you’re not employed or if you don’t have good credit, it’s probably best to avoid getting a credit card until your financial situation improves.
How Much Income Do You Need to Get Approved for a Student Credit Card?
Here are a few things to keep in mind when it comes to student credit cards and income:
The first thing you need to know is that there is no set income requirement for student credit cards. That being said, most credit card issuer will want to see at least some evidence of income before approving you for a card.
This could come in the form of part-time job earnings, parental support, or even scholarship or grant money. If you don’t have any income at all, don’t worry – there are still options available to you.
Other Factors to Consider
Income is not the only factor that credit card issuer look at when considering your application. They will also take into account your credit history (or lack thereof), payment history, and debt-to-income ratio.
So, even if you don’t have much income, you may still be able to get approved for a student credit card if you have a strong track record in these other areas.
Can you include parents’ income on a credit card application?
It can be tricky to know what to include as income on a credit card application, but luckily, there are a few options.
- First, students can list actual income from a job, including part-time or seasonal work and side hustles.
- In addition to income from a job, regular allowances or bank deposits received from parents or family can count toward income. As long as monthly bank statements prove the income, they’re valid as income on a credit card application.
- Leftover financial aid (after paying tuition and college expenses) can also count toward income on a credit card application.
So, if you’re not sure what to include as income on your credit card application, just remember that any regular source of money counts!
How Unemployment Affects Credit Indirectly
While being unemployed doesn’t have a direct impact on credit, it can still influence credit in indirect ways. One way is if you start to miss loan or credit card payments because you can’t afford them anymore.
If you’re struggling to make ends meet, it’s important to contact your lender as soon as possible to explain the situation and work out a new payment plan.
Another way unemployment can indirectly affect credit is by making it more difficult to build credit. The Credit Card Act of 2009 made it more difficult for young people who don’t have a job to get their own credit cards. So, if you’re unemployed and trying to build credit, you may have a more difficult time than someone who is employed.
While it’s not impossible to get a credit card without having a job, it can be difficult. You will need to provide documentation of all sources of income, including your spouse’s income if you are married.
Another option is to find a co-signer who has good credit. If those options don’t work for you, consider getting a secured credit card which will require you to put down a security deposit.
Let me know in the comments if you have any other questions about getting a credit card without employment!