Do You Need a Job to Get a Credit Card – Breaking the Myth

Credit cards provide an easy and secure way to make payments while earning rewards. In general, credit card issuers ask about your employement status and total annual income for a credit card application. But the question is that, Do You Need a Job to Get a Credit Card? Hmm.

While the answer of this question is not a simple yes or no, but having a job or a income source may increases your chances of approval. While there are several ways to get a credit card without a job, you do need a income source and, you can apply for a credit card.

However, you can meet the income requirement without a job by including your income sources on your credit card application. If you have a low income, you stilll have options to get credit card.

Do You Need a Job to Get a Credit Card?

If you don’t have a job or you are living with your parents, you can still apply for a credit card.

According to the Credit Card Act 2009, if you’re older than 21 years, the act allows you to list any household income to which you have access. This income could be the income from your partner or income form investments or rental property. The card issuer review your credit report to calculate your current loan and credit card payments,

So, if you dont’t have a job, you can use unemployment benefits on your card application, because it is not necessary that your income must come from a job.

Can You Get a Credit Card Without a Job?

Yes, you can get a credit card without a job. As, most credit card issuers have a section of employment information, and you can put down student or unemployed. You can show your annual income and assets, because they are more important than employment status or job.

Since, income is not directly related to a job, it can also come form different sources like investments, assets or anything that you own. For instance, you could have a rental property or an asset. This can be your source of income.

Credit Card Without a Job

If you are under 21, you may need your own income source to qualify for a credit card. This income can be your regular pocket money or allowance from your parents. And, if you are over 21, you can put down household income, rental property, or anything you want.

So, the answer to the question, “Do You Need a Job to Get a Credit Card” is yes. Yes, you can get a credit card without a job.

» MORE: Best Credit Cards for Young People

How to Get a Credit Card Without a Job?

Other than your income, most credit card issuers consider your credit history while reviewing and approval. If you have a good credit score, you can get approval for a new card and recieves a lower interest rate. Here are some useful steps to get a credit card without a job:

1. List you non-employment income sources

You can list your different income sources like investment or rental income, commissions, unemployment benefits, Social Security payments, etc.

2. List Shared Income

If you have access to partner’s income or someone else’s income, you can use that income. It could be allowance from a relative, friends, or income of your partner.

3. Become an authorized user on someone’s credit card

You could become an authorised user on someone’s credit card of your family members or friends. An authorised user also can make changes. Basically, you’ll get a card with your name linked to their account. But, they will make all the payments.

Also, the primary cardholder is responsible and own the account legally. This option is the best and easy to start building credit score. So, you are now connected with their credit card, it will affect build your credit score.

4. Apply For a Secured Card

You can apply for a credit card with no income requirement i.e a secured credit card. Applying for a secured credit card is another great way to get a credit card if you don’t have a job. As secured credit cards requires a security deposit (usually $200+) as collateral in case you don’t able to pay your bills. You get guaranteed approval for a credit card.

The amount deposit as security amount will determine your credit limit. Due to the security amount, it become easy to qualify for a secured credit card than as compare to a regular credit card. The income requirement is also very less. Plus, you can use this card just like any other credit card to make purchases.

» MORE: Discover Secured Credit Card

5. Student Credit Card

Many credit card issuers specifically design credit cards for college students, which requires no income or employment. Plus, these cards have low fee and offer reward benefits, sepcifically desingned for students.

In case, if you are not approved for a student credit card without income source, then you can go with the option to someone co-sign application, if the bank allows.

» MORE: Best International Credit Card for Students

Pro tip: According to Nerdwallet, several credit cards called “alternative credit cards” have come to the market under nontraditional underwriting policies. These credit cards are good option for people with limited or no credit history. But, you’ll have to meet the requirement from card issuer.

Building Credit Without a Job

However, it is possible to get a credit card without a job. But, building a positive credit history is also very important for credit card approval. If you are unemployed, you can build a positive credit history by using secured credit card or student credit cards.

Building Credit Without a Job

Make sure to pay all your bills on time so you credit score will stay positive or improve. Try to maintain emergency fund tackle unexpected situations, if you are unemployed.

If you already have credit cards accounts opened, manage your spending habits and be responsible with your payments. Stop spending money on large purchases that you can’t pay back without carrying a balance. This can negatively affect your credit score.

Is it Good to Get a Credit Card Without Job?

The answer depends on your current situation. If you applying for a credit card to cover your everyday expenses, then it’s not a good approach. Over time, you will find yourself in credit card debt.

If you managed to get a credit card without a job, make sure it is used for the right reasons. Avoid large purchases for your credit card that you can’t pay off. Also, avoid taking cash advance benefit from credit cards.

Credit cards are only used for convenience, not for overspending or as an actual line of credit. Sometime credit cards can be a risky way to borrow money. Make sure to use a credit card safely.

Conclusion

It is possible to get a credit card even if you are unemployed, but it will more easy to get a credit card if you are employed. There are several ways to get a credit card without a job like a secured or student credit card, use a card as an authorised user etc.

Keep in mind, whether you’re unemployed or you have a job, use your credit card wisely. Don’t make purchases that you can’t afford and try to pay in full every month to avoid extra charges.

Do You Need a Job to Get a Credit Card Related FAQs:

Can I Get a Credit Card Without a Job?

Yes, you can get a credit card without a job. As, most credit card issuers have a section of employment information, and you can put down student or unemployed to get a credit card.

What income is required to get a credit card?

There is no specific income required to qualiy for a credit card. However, it is good to have a income more than $39,000 for a single person or $63,000 for a couple or household. Credit card issuers check your annual income to verify if you’ll be able to pay credit card payments.

How to get a credit card with no job?

Here are some tips to get a credit card with no job:
1. List you non-employment income sources
2. List Shared Income
3. Become an authorized user on someone’s credit card
4. Apply For a Secured Card
5. Student Credit Card

Can I secured credit cards without job?

Yes, you can get a secured credit card like Discover it Credit Card with no income.

What factors do credit card issuers check?

Generally, credit card issuers check factors like credit score, income, employment status and your financial stability.

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