How to Get a Credit Card without a Job

A credit card is an important tool in achieving financial freedom, which you can use to do anything even without adequate balance in your account. To get a credit card, you need to have regular income and a sound banking history so that the bank can lend you money. However, it does not mean that you cannot get a credit card if you do not have a job. Here are some ways you can qualify for a credit card without a job.

Quick Facts About Credit Card

  • Credit cards can improve or hurt your finances. They are neither good nor bad. Therefore, they must be used with care.
  • Applying for a new credit card comprises 10% of your credit score regardless of whether you are approved, use it or not.
  • Applying for a new credit card frequently can hurt your credit score.
  • Credit cards are one of best financial tools for building your credit history if you use them responsibly such as paying off in full monthly.
  • 30% of your credit score is based on your debt-to-credit ratio (your credit card balance divided by your available credit line). Using too much of your credit limit is bad for your credit score.
  • Late credit card payment may be reported to TransUnion, Equifax, and Experian (consumer credit bureaus) if it’s more than 30 days late. It may stay on your credit reports for up to 7 years.
credit card no job
Dinners Club credit card.

Aggregate Your Income

If you have a good credit score and you currently don’t have a loan, you can aggregate all your income from self-employment, interest on dividends, retirement incomes, public assistance and any external deposits into your account. Include any other acceptable source of income. You will need to read the terms and conditions of the card so that you can know the acceptable sources of income. You will be surprised to realize that the income requirement is not as high as you would think. Find out how to improve your credit score if you need to.

Include your Spouse’s Income

Before being issued with a credit card, issuers must verify that you can pay monthly payments according to the 2009 Card Act. Credit card issuers can always include incomes that the consumer has access to. This can include joint accounts or any amount that is deposited into ones account by a spouse. Therefore, if you have a spouse with an income, consider counting the income while applying for a credit card.

Apply for a Secured Credit Card

It is easy to qualify for a secured credit card compared to an unsecured credit card. With a secured credit card, you can establish an impressive credit card history. To get a secured credit card, you will need to make a deposit of refundable deposit upfront which then becomes your credit limit. The deposit becomes a security for any credit advanced to you by the lender. However, secured credit cards have high Annual Percentage Rates (APRs) and annual fees. Consider applying for a Discover it Secured card that has $0 annual fees and comes with a reward program. Fortunately, it attracts cash back on purchases from retailers.

The other card you can consider taking is Capital One Secured MasterCard. With the card, you only need a refundable minimum security deposit of $49 or $99 or $200 based on credit score. You also need access to an authorized bank account to make your security deposit. Once you have done that, you qualify for at least $200 credit which can increase when you make the first five payments on time.

Use a Co-signer to Get a Credit Card

If you do not meet all other requirements, consider using a friend or a relative as a co-signer. When a person agrees to become your co-signer, he agrees to take responsibility for your debts. Make sure to assume liability for your debts since this could ruin their creditworthiness and also ruin your relationship. Consider using a person with an excellent credit history so that your application is not rejected.

Use Alternative Credit Cards

Some of the alternatives to credit cards are gift cards which you can apply. Another option is the American Express Bluebird, which is an alternative to banking and you can use it to access ATMs. If you know the rules, it is possible to use the card free of fees. However, while using the free option, you can only access money that is in the account. The good thing is that the card comes with a Purchase and Fraud Protection.

Become an Authorized User

To become an authorized user, you need to apply for a credit card with someone else. Alternatively, you can be added as an authorized user to an existing credit card by either a friend or relative. As an authorized user, you get a card which you can use to make purchases, but you are not charged any fees. It is advisable especially if you have a poor credit score. If the cardholder has a good credit score, it can help you to improve your score.

Conclusion

In case you are looking for means to get a credit card while you do not have a job, there are several options mentioned above. Before getting a credit card, make sure you have a solid plan on how you wish to repay any credit. With time, you reach financial freedom and qualify for a credit card with a higher credit limit.

Vincent is a writer with an interest in finance, business, technology and health niche. He holds a Bachelors degree in Applied Statistics with computing. Read more about Vincent and see our complete editorial team at FiFi.