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Credit cards can be beneficial for your daily expenses, especially if you don’t have a job or are still looking for one.
With this, it’s crucial to remember that unemployment doesn’t automatically disqualify you from acquiring a credit card.
However, you’ll still need to satisfy the eligibility requirements to get approved.
Article Table of Contents
Is Having a Job Mandatory?
If you’re unemployed, there’s no need to worry about not having a chance of getting your credit card.
Some lenders suggest borrowers apply credit card bad credit option, which is an advantage if you have a poor credit score.
It means you just need to find the right lender or credit card issuer to help you with your needs.
The Credit Card Accountability Responsibility and Disclosure Act of 2009, also known as the Credit CARD Act, has been responsible for reforming and regulating the credit card industry for many years.
According to this act, credit card issuers are required to consider the borrower’s ability to pay.
It means that your job will not be an issue, but your income will be as well as your credit score, credit history, and existing debt.
Credit card issuers may consider the following as proof of income to which you have direct access:
- Allowances and gifts;
- Income from partner or spouse;
- Trust fund distribution;
- Scholarships and grants;
- Social security income;
- Retirement account distributions.
If you’re currently receiving an income that’s not on the list above, you can write it down and include it in your credit card application.
While you’re free to mention any income, you might be required to disclose the source.
You should also know that some credit card issuers would instead choose specific sources of income over others.
What To Consider
If you’re planning to get a credit card, even if you still don’t have a job, it’s crucial to know what to consider before deciding to get one.
The most critical consideration would be your ability to pay for the purchases you’ll be making.
Credit card companies charge their clients’ minimum monthly payments, only a tiny percentage of your total credit balance.
It makes it easier to pay off your credit card debts during your job search.
It’s essential to remember that if you have a tight budget and can’t afford to pay off your credit card debts, it can lead to a financial crisis.
If you’re late on your payments for a month or more, it will negatively affect your credit score.
Getting a Credit Card Without a Job
If you’ve finally decided to get a credit card despite not having a job, here are some tips for you to get one:
Evaluate Your Income
The requirement for the source of income will significantly depend on the credit card issuer.
The income threshold might not be as high as you think, especially if you don’t have any debt or have a good credit score.
List your income sources and include them in your credit card application to boost your chances, and don’t forget to read the terms and conditions of the credit card before applying.
It’s crucial since it can help you know if you can include other income sources such as child support or alimony.
Consider a Co-signer
If you think your income is insufficient or you have a bad credit score, getting a co-signer would improve your chances.
The co-signer is responsible for paying your credit card debt if you can’t pay it by any chance.
Therefore, choose a co-signer with a good credit score, whether a family member or a friend.
It’s essential to know that not all credit card issuers would accept co-signers, so shop around and find out if a particular lender allows co-signers before you apply, especially if you want to improve your chance of getting a credit card.
Become an Authorized User
You can also become an authorized user of another individual’s credit card.
For most credit card companies, having an authorized user on another person’s credit card is possible.
It means the primary owner can let you use their credit card based on the spending limit and other conditions they might provide you.
Being an authorized user means you can make purchases using someone else’s credit card.
However, you won’t be responsible for the payments.
It can help you build credit, which is an advantage for people who want to improve or have bad credit.
To Wrap It Up
Credit card issuers focus on your income and other financial factors, like your credit score, to determine if you’re a risky borrower.
They use this method to approve or disapprove your credit card application.
It shows that not having a job is still acceptable for credit card issuers as long as you meet the lender’s qualifications.