Credit Card FAQ

Can I Get a Credit Card Without a Job?

20 September 2010 by CreditCardsCo™

While it stands to reason that credit worthy employed people can apply for almost anything and get it, what if you are unemployed? Is it possible to still be able to apply for, and actually get, a credit card if you don't have a job?

How can payments be made if you don't have a job, and does that affect the ability to obtain a credit card? If it is possible to get a credit card while unemployed, will it be the same type of card an employed person has?

No Job, No Card?

While most people give advice that in order to get credit you have to build credit, how is that actually possible if you don't have a job? The answer is that there are many ways in which it is actually possible to get a credit card while being unemployed. Some unemployed people have retired and still have a source of income, or others might have trust funds or income from property etc.

Secured Credit Cards

A secured credit card is a card that's credit limit depends upon how much you actually deposit on that card. Unlike a regular credit card, a secure card is more of a savings account. The money spent on the card is money that you have put onto it in the first place. While this means that you are not obligated to any credit card company as such, your credit score will start to rise if you spend responsibly. Eventually, by using the card in a responsible manner, you will be able to obtain a credit card that is unsecured.

Unfortunately secured credit cards typically carry fees that might not work in your best interest. Most will have monthly, start up and annual fees, along with fees to have an additional card holder added as well as cancellation fees. If you deposit $300 on a secured card, and the fees add up to $200, you will actually only have $100 available to spend on the card.

Student Cards

Many credit card companies have options for a student credit card. These will usually require you to have a co-signer whose income will be taken into consideration when applying. The student will also be asked if he or she is in receipt of any student loans, as many students use these loans to help pay for living expenses.

Student credit cards are an ideal way of establishing a good credit score before even starting out in the world of jobs and mortgage applications. Many student cards also offer rewards schemes and bonuses that can be used for school books or other related items. Some student cards reward sensible spending and prompt payments by lowering interest rates after three months of doing this. Good credit is being established due to responsible use of the card.

Unemployed But Still Have an Income

Though you may be unemployed, you might possibly still have a source of income that can be used when paying a monthly credit card payment. Retired or pensionable individuals are still able to apply for and obtain credit cards, as the credit card companies will take any available income into consideration. Occasionally an applicant will be asked to have a co-signer in the event of the income being low, and the co-signers income will also be taken into account.

As with all financial matters, if you are shopping around for a credit card, whatever your employment or income status, do your homework. Compare credit cards and companies and make sure that all small print and terms and conditions are read and understood.

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