Unemployed individuals should consider secured credit cards such as the Bank of America Unlimited cash Rewards Secured Card or the Capital One Platinum Secured Card. These cards require no income proof and are easy to get approved for. A secured card can be approved even though you will need to provide collateral.
Minimum income requirements
In order to qualify for a credit-card, you might be unemployed. A credit card is only available to those with an income that exceeds the minimum income requirement. If your monthly income is below $1,000, you won't be eligible for a credit card that has a $1,000 credit limit. If you're unable to meet these income requirements, you can always list third-party income, such as income that you receive from a spouse or partner. Credit card companies may even allow you to apply if you have income from unemployment benefits.
In recent years, many alternative credit cards entered the market. These credit card options often have income requirements and non-traditional underwriting policy. These types of cards are a good alternative for people with limited income and a lack of credit.
Secured Credit Cards
A secured card can help you rebuild your credit. A deposit is required, although they don't need to be approved. The credit limit of a secured account is typically equal to the deposit amount. You may consider switching cards if you are spending more than that.
One of the advantages of secured credit card is that they report to credit bureaus. You can even upgrade to an unsecured card after a certain time. This could allow you to apply for a larger credit limit as quickly as 6 months. It is possible to get a higher limit than the security deposit, but it is rare.
Prepaid credit cards
Prepaid credit cards can be used as an alternative to checking accounts. Prepaid credit cards do not affect your credit rating like bank accounts. You can either load your card with cash at the local store or buy reload packets. Prepaid cards make it easier and safer to use than cash. You can limit how much you spend with prepaid cards.
Some cards are issued directly by the banks while others are issued by government agencies. Some cards may not be as secure as cards issued by traditional banks. You may also find additional tools on some cards that you might be able to use if they are unfamiliar. For certain transactions, fees may be required. It's important to check all terms and conditions before you sign up for one of these prepaid cards for unemployed.
Alternative credit cards
Obtaining a credit card can be a difficult process for the unemployed, but there are many options available for people in this position. Alternative credit cards for unemployed are for people who have a good credit record but don't have any steady income. There are options available, no matter if you have been laid off due to a job change, restructuring of your company, or redundancy.
Many banks offer alternative credit cards to people who lack access to traditional credit cards. These cards allow people to load money on them without having to use a debit card. They can then use the cards wherever credit cards accept them. The downside to these cards is that many come with fees and don't have a debit option, but they are still a great option for those who don't have a credit card.
Get 0% off your first credit card with an introductory APR
You might be able to get a 0% introductory credit card, even if your income is low. They typically have no annual fees and can also be used to make new purchase or transfer your balance. Compare offers from multiple credit card companies before signing up for a card. Some offers are only valid for a limited time and may not be available in your area.
Check the interest rates carefully before you apply to a 0% intro APR credit card. You should pay your balance off as soon as you can, as most cards have high interest rates. Use a credit card calculator to compare the different offers.