In the contemporary world, credit card has become an important thing to have. Most of the financial institutions or banks require proof of employment to approve your credit card request. Therefore, it becomes a little difficult for many self-employed or unemployed people to obtain a credit card. Fortunately, it is not completely impossible.
Here are a few ways you can get a credit card even if you do not have a job:
Showing proof of income
Income is more important than the job. If you do not have a job, but have substantial inflow of money into your account, you are as much eligible to apply for a credit card. You will need to submit the proof of income to the bank with your credit card request. The income could be from royalty, business profits, child support or alimony. Some banks may ask you for records of income tax return.
Credit card for students
Students studying in a college are also eligible to apply for a credit card. However, they need to have a trust fund, an investment, or some financial assets to qualify. There are some banks that could be willing to give you a credit card if you already have an account with them with sufficient funds. It is best to review the student credit card offers available with different banks and then choose the one that sounds more apt for you.
With the help of a co-signer
A co-signer is indeed a guarantor who has a good credit. When the co-signer approves you for the credit card, he/she becomes equally responsible for payments as you. In the event of payment default, the credit score of the co-signer also gets affected. Usually, only guardians or parents are considered as co-signers by the banks. However, there are some banks that might accept a non-related co-signer as well.
Applying for a secured credit card
If you do not have a job or are self-employed, you can still get a secured credit card. For this, you will need to have the funds available. The fund works as the collateral against the credit line. This amount acts as the security deposit for your credit card. In the event of failure to make the payment for the balance, the amount will be deducted from the security deposit.
Disclaimer: All information in this article has been provided by Creditvidya.com and NDTV Profit is not responsible for the accuracy and completeness of the same.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
