Unemployment doesn’t have to be a hurdle when getting new plastic.
These days, having a credit card feels like a necessity. Whether you need it to make everyday purchases, or for something larger, like to build credit so you can buy a home, it’s always a good idea to carry plastic. If you don’t have a job, however, applying for a card might feel a bit daunting. That said, being unemployed should not get in the way of you acquiring a card.
Here are a few things you should know if you don’t have a job and are trying to get a credit card.
What credit card companies will consider if you apply without a job
Some card issuers won’t ask for employment details in the application form, while others will. In either case, your options are as follow:
Provide employment details.
If you are transitioning to a new job, you shouldn’t have problems providing your new employer’s details. But if the issuer requires several months of payment history, you could either wait or apply for another card at another card issuer.
Provide income details.
When credit card application is concerned, income is more important than employment. You can provide any income you have, including social security, child support, alimony and scholarships. Any income you have would work.
Unless you’re a fresh graduate, your credit history always factors heavily into all credit applications. Having a good credit history will help in this case.
Tips to improve your chances of credit card approval
If you have a solid income, even without a job, you could still get a decent credit card. But if you have limited or no income, you can:
List someone else’s income.
You could use your spouse’s income if you have access to pay your balance.
Become an authorized user.
You can apply with someone else to become an authorized user or you can be added as an authorized user to an existing credit card. This can be either your spouse or family members. As an authorized user, you aren’t liable for credit card payments.
Get a joint account.
Similar to being an authorized user, you can apply for a joint account with another person. But in this case, you’re both liable for credit card payments.
Consider a secured card.
To get a secured card, you have to make a secured deposit. This serves as your credit line. Since you already paid your credit line, banks have minimized their risk and are likely to approve your application.
Consider a student card.
If you’re a student without a job, you can get a card easier than if you aren’t a student. However, showing annual income still applies. You can use your parents’ income if they allow you to.
Compare credit cards
Getting a credit card without a job may seem impossible, but you have several options at hand, including being an authorized user, applying for a joint account, applying with someone else’s income or applying for a secured card or a student card.
Whichever path you choose, it’s important that you compare your credit card options to find the right card for your situation.
Pictures: ShutterstockBack to top