For many people, a credit card is the primary source of credit that can help them in times of financial crisis. When you are employed, it is typically easier to obtain a credit card. This is due to the fact that before providing a credit card, banks and card issuers assess the applicant’s income. You will be required to present documentary proofs of income, such as salary statements, income tax return (ITR) records, and so on.
Many people rely on credit cards as their principal source of credit in times of financial distress. It is usually easier to acquire a credit card while you are employed. This is because, before issuing a credit card, banks and card issuers analyse the applicant’s income. Documentary evidence of income, such as pay statements, income tax return (ITR) records, and so on, will be requested.
Let’s find out how you can get your own credit card even if you don’t have a job:
Providing Evidence of Income
The salary is more significant than the work. If you do not have a job but have a significant amount of money in your bank account, you are equally qualified to apply for a credit card. You must present evidence of income to the bank along with your credit card application. Income sources might include royalties, company earnings, child support, or alimony. Some banks may request copies of your tax returns.
Students’ Credit Card
College students are also allowed to apply for a credit card. To qualify, they must have a trust fund, an investment, or some financial assets. Some banks may be prepared to issue you a credit card if you already have an account with them and adequate cash. It is essential to compare student credit card offers from several banks and then select the one that appears to be more suitable for you.
With the Assistance of a Co-signer
A co-signer is a guarantor with excellent credit. When the co-signer accepts your credit card application, he or she becomes equally liable for payments as you. In the case of a payment default, the co-credit signer’s score is also impacted. Banks often consider only guardians or parents to be co-signers. However, some banks may accept a co-signer who is unrelated to the borrower.
Get a Secured Credit Card
You may receive a secured credit card even if you don’t have a job or are self-employed. You must have the finances available for this. The money serves as collateral for the loan line. This amount serves as your credit card’s security deposit. In the case that the remaining payment is not made, the amount will be removed from the security deposit.
Step to Get a Credit Card without Income Proof:
Though banks presently issue credit cards to customers without requiring any income evidence, an individual would be better served to understand the methods outlined below when it comes to obtaining credit cards without providing any income proof.
- Having a Bank Account: The first step to availing a credit card is having a bank account. That’s because your bank account will act as a credible source for banks to rely on in case of a default.
- Having a Plan of Action: The second step would be to have a plan in place, for your financial planning. This is to make sure you don’t end up in debt, your credit is easily monitored, getting a secured card first and then getting a normal credit card & so on.
- Credit Consolidation: Banks generally look for the income-to-debt ratio. Finding ways to consolidate credit is as important as having a job or income & hence can’t be ignored. So always pay your debt in time and don’t let them pile on.
- Utilize Credit Reports: You should also have an error-free credit report. This goes long way in securing a credit card as well as a solid step in achieving financial independence.
- Disclose All Your Income: Even if you’re working as a freelancer, you should report that as it will help build your credit, even if the source can’t be proved.