Can You Apply For A Credit Card While On Unemployed? A credit card has the ability to either make or break your credit score in your financial life. Wise use of a credit card will increase your credit score while careless use will affect your credit score negatively.
Apply for a credit card is for those that have an active job they are doing however can you still apply for a credit card while you are unemployed?
If you are thinking of applying for a credit card and you are unemployed then you are reading the right article. In this time of economic inflation and interest rates rising one of the things you will need to scale through is to have a credit card but if you are not employed can you still get one? To get the other to this question make sure you stick around to the end.
Can You Apply For A Credit Card While On Unemployed?
Just as I have mentioned above we ate on a tom of financial uncertainty with inflation and also rising interest rates. It is customary that in these times so many people would lose their jobs. Many people will lose Their jobs and others will be in-between jobs. This is not a new thing but if you are currently unemployed can you still apply for a credit card?
The answer to this ques is yes you can. If you are currently an employee that does not mean that you have. This is because most credit card issuers Are more interested in your income down the job that you are actually doing currently. That is not because there will also look at your credit history reading score in also your existing debt.
What Qualifies As Income When Applying For Credit Cards
It doesn’t matter whether you are out of a job or seeking a new job just as I have mentioned above you can still apply for a credit card. Am income does not only have to be your monthly paycheck. As long as something is coming into your hands financially that can also be considered income when you are currently unemployed. It is basically money that you receive monthly.
So you can provide any monthly stream of money that enters into your hand when applying for a credit card when you are unemployed. On the other hand, you can also list any I come to which you will have a reasonable expectation to access to apply for a credit card as stated in the 2009 Credit Card Act. This income can be from your spouse, partner, shared account, or unemployed benefits.
Is It A Good Idea To Get A Credit Card While Unemployed?
Is is a good idea and a bad idea at the same time? So it basically depends on your situation whether to get a credit card while unemployed or not. You should definitely proceed with caution when seeking extra credit in form of a credit card if you are not yet employed. This is because if you are not able to pay back the credit card debt that you will be borrowing it can be quite a pain in your financial life.
A credit card is good for taking care of essential expenses that you will otherwise be lost without. That being said you should have other means to pay back your credit card debt once you are taking a credit card while unemployed. If you have a loved one willing to pay or you are about to get a new job you can take on a credit card otherwise it is a bad idea.
Other Ways To Apply For Credit Card If You Are An Employee
If you are unemployed and you did not want to go ahead with applying for a credit card they are all ways you can still get a credit card. Some of these ways are listed below these are alternatives to directly applying for a credit card if it is not an option while unemployed.
Become An Authorised User
If you cannot apply for a credit card while you are unemployed then you can simply become an authorized user on someone else’s credit card. This is one of the best alternatives for applying for a credit card directly. The person basically places all the credit card debt and maintains the credit card while you have access to the person’s line of credit.
Become A Co-Applicant
Before you can simply apply for a cosigner to get a credit card from some banks such as Bank of America but this is no longer possible this day. What is still possible is for you to apply as a co-applicant for a credit card which some banks still do. When someone applied for a credit card and gets approved by Bank of America they can now be added as a co-applicant then you will share the legal responsibility of the card.
FAQs
Can I apply for a credit card if I don’t work?
The answer to this question is yes being an employee doesn’t automatically disqualify you from your credit card approval. As long as you have any other line of credit even if it is not a monthly paycheck that usually comes to your hand then you can apply for a credit card while unemployed. However, applying for a credit card while unemployed can be a bad idea if you have no means of paying the bills.
How can I get my first credit card with no income?
One of the best ways to get your first credit card if you did not have any income is basically to make use of a cosigner in your application. It will be the responsibility of the cosigner to pay any debt that you are not able to pay after you have gotten approved for the credit card. Alternatively, you can also decide to go for a secured credit card which is in a credit card that requires a down payment.
What is the lowest income for a credit card?
There is no lowest income for a credit card because this is not what card issuers are interested in. They are basically interested in your ability to pay back your credit score and other factors. They do not look at the amount that you earn monthly as long as you are able to pay back you can be granted a credit card when you qualify.
