Usually credit card issuer’s do not accept any applications of any unemployed individuals or a person with no jobs. It is required to have a valid source of income to be eligible for using credit cards. However, you can get a credit card even being currently unemployed as most issuers look for an alternate source of income.
In this article, I will explain the methods and steps to get a credit card without being employed or receiving any salaries whatsoever. If you are a student and above the age of 21, you can also follow the procedures I will provide to apply for a credit card.
There are different techniques for an employed person or a student to avail the credit card service. In order to get a credit card, an individual with zero source of income or a student must associate their accounts with an authorized user.
Let’s know all the necessary information about how to get a credit card without salary:
4 Effective Ways To Get Credit Card Without Salary:
You do not have a source of income, but still need a credit card? Here are the 4 effective ways to get a credit card without any salary:
1. Show Alternative Sources Of Income:
In order to apply for a credit card without any salary, you can list down all the other sources of income in the application form like your pension money, compensation money for unemployment and the payments you receive from social security.
However, if you are a student the calculation is totally different which I will explain later in this article. If your past credit score is good and totally free from any debts, calculate the total source of income from the various sources to find out if you are eligible.
Show the income statements of your other accounts(if any) or any account with a constant deposited amount. Issuer’s look for the ways you can repay the money and your alternate sources of income can assure them.
2. Apply For A Joint Account:
You can apply for a joint account to avail the credit card service. Most issuer’s allow the credit card holders to authorize an user, who can use the credit card on behalf of the main cardholder. The main account holder takes full responsibility of paying the interests and due amounts.
Usually joint accounts are shared by the family members or spouse’s, which is the most safer option. In that case, the member has to show his/her income statements or deposit an amount every month to your account for you to use the credit card without any hassle.
The deposited amount paid by the family member or your spouse is considered as the current source of income, if you are currently not receiving any salaries. The main cardholder will apply on behalf of you and will include you as an authorized user to the issuer. This is applicable for students also with no source of income.
3. Find An Individual Willingly To Co-Sign:
Look for someone with a valid source of income who is willing to take the responsibility and pay on behalf of you when you can’t pay. Although it may seem similar to the previous technique, read carefully to know the differences between a co-signer and a joint account holder.
Being an authorized user in a joint account means the money deducted is from the same account. This method is used by the individuals to improve and build a good credit score and the co-signers assurance will increase your chance of approval.
A co-signer will pay your amounts only when you are unable to pay. You will have a totally different account and the issuer will use the co-signers income statement and credit history for issuing the card to you. This is a risky business as failing to pay the dues on time can affect your co-signer’s credit score.
4. Use Secured Credit Cards As An Alternative Option:
Applying for a secured credit card also requires a valid source of income. The issuer’s application form will ask about your employment status and salaries to even consider you as an applicant. In order to apply for a secured credit card with an income, an applicant is required to deposit a security amount in their account.
Your credit limit will depend entirely on your deposited amount. The higher the security deposit, the higher the credit limit will be given by the issuers. Before you apply for a secured credit card, make sure to evaluate your ability to repay the borrowed amount.
You have a higher chance of getting a quick approval for a secured credit card as the money deposited is a direct guarantee or indemnification of your repayment. Compare the rates of the cards before applying, as most of the secured credit cards have high APR’s and additional fees.
Some Frequently Asked Questions:
Can A Student Apply For A Credit Card?
Students without a source of income need to apply for a joint account to use the credit card service. The main cardholder will add the student as an authorized user and set a credit limit. However, some considerations are given to the local students if they have a part-time income or job to individually apply for a credit card.
For an International student, it is difficult as most issuers require a social security number and a permanent address. Local or international students can apply for a secured credit card with a deposited amount as a guarantee fee.
What Should You Put For Annual Income If You Are Unemployed?
You can put any other alternative income sources in the application form if you are currently unemployed. Alternative sources may include payments from social security, public assistance, you include your child support money if you receive any rents from your properties etc.
A divorced person can include the alimony payments they receive from their spouses. A retired person can include their pension money for the assurance of the repayment. If you inherit any properties or money from your ancestors, you can also include the estimated amount along with a legitimate document of your property.
Getting a credit card without a salary or being unemployed may not sound difficult, but it is better not to apply for a credit card without a fixed source of income.
Repaying the money without being employed will be a very difficult task and can put any individual in serious debts. If you have any confusion regarding the matter, feel free to write to us in the comment section below.