Can You Get a Credit Card When You Don’t Have a Job? (2024)

FAQs

Can You Get a Credit Card When You Don’t Have a Job? ›

You can get a credit card when you're unemployed. Credit card companies consider other income sources besides employment. A secured credit card may be a good option for someone with little or no credit history.

Credit card issuers will generally ask about your employment status and total gross annual income on a card application. While you do need a source of income, you can apply for a credit card even if you don't have a job — and you can get approved regardless of employment status.

It's not likely that the card issuer will ask for you to provide proof of income, such as tax forms, unless you are a young borrower. But the best practice is to be honest so that your credit limit is appropriate. You'll want to make sure you can afford the minimum payments and stay out of debt.

You can get approved for a credit card without regular employment if you can provide an alternative source of income. Failing that, you may still qualify for a joint credit card, low-income credit card, prepaid credit card, secured credit card, or student credit card.

Do credit card companies know if you are unemployed? It depends. Credit card companies are usually more interested in a customer's income than employment status, but they do use employment as one means of qualifying income. However, they won't know specifically about unemployment unless a customer informs them.

If your income is lower because you're unemployed, not every credit card issuer will approve your credit card application. However, some may. If you have enough income from other sources, unemployment won't limit the cards you can apply for.

Every time you apply for credit you may be asked to provide information about your employment history to help confirm your identity. If an employer shares this with the credit bureaus, it will sometimes show up on your report, but not always.

While there isn't a specific income requirement for a card, evaluating your access to income allows a bank to determine your credit health and whether or not they want to lend you money based on their confidence in your ability to make your payments.

You'll need to show proof that you have a steady source of income to qualify. If you can't show a source of income, such as a job, you'll need to have a cosigner on the card or ask to be an authorized user on a friend or relative's credit card.

Can I get credit with no income? ›

Income is not a factor when it comes to your credit score. However, income can help you pay your bills, which contributes towards your payment history. So, you can still establish credit without a job.

The impact of a poor credit history extends beyond securing loans or making major purchases, it can also be a barrier to employment. Many job seekers are surprised to learn that their creditworthiness could be the deciding factor in whether they land their desired position.

Card issuers sometimes ask you to verify your income, which you may be able to do by submitting copies of income-related documents, such as a tax return or pay stub.

Answer: Simply losing your job shouldn't affect your credit scores and report. But it is possible that your credit history could be affected if you fall behind on credit card or loan payments. If you're concerned that you may not be able to keep up with debt payments, contact your lenders immediately.

If you don't have a substantial source of income — or none at all — you may struggle to be approved for a credit card. Having poor payment history is an indicator that you may not be able to repay the credit lenders extend. Lenders may not look favorably upon applicants who are carrying debt.

Credit bureaus and card issuers cannot see if you've filed for unemployment unless you give them explicit permission. This only happens if your card issuer notices out-of-the-ordinary behavior from you, such as a major jump in your spending, abruptly switching to only paying the minimums or other red flags.

However, income can help you pay your bills, which contributes towards your payment history. So, you can still establish credit without a job. If you're able to make your bills on time, you'll be contributing towards your payment history—a highly weighted factor that goes into generating your credit score.

In other words, not having a job won't stop you from getting approved, but not having any income might. Fortunately, credit card issuers can consider any income to which you have reasonable access.