Unemployed persons should consider secured credit cards such the Bank of America Unlimitted Cash Rewards Secured Card, and the Capital One Platinum Secured Card. These cards are very easy to approve for and don’t require income proof. Although you will need collateral, a secure card is one of easiest credit cards to be approved for.
Minimum income requirements
In order to qualify for a credit-card, you might be unemployed. For a creditcard to be approved, you need to have an income above the minimum. For example, a credit card with a $1,000 credit limit won't be available to you if your monthly income is less than that amount. You can list any income from third parties, such as income received from your spouse or partner, if you are unable to meet these income requirements. You may be able to apply for credit cards if you are receiving income from unemployment benefits.
In recent years, many alternative credit cards entered the market. These credit cards have non-traditional underwriting policies and often require income requirements. These cards are an excellent alternative for those who have low income and little credit.
Secured credit card
A secured credit card is an excellent way to rebuild your credit. A deposit is required in order to obtain a secured credit card. The credit limit on a secured card is usually equal to the deposit amount, so if you spend more than that, you may want to look for another card.
Secured credit cards have the advantage of reporting to credit bureaus. After a certain period, they can be upgraded to unsecured cards. This could allow you to apply for a larger credit limit as quickly as 6 months. Even though it is rare, you may be able to obtain a greater credit limit than your security deposits.
Prepaid credit cards
Prepaid credit card are an easy alternative to checking account. Prepaid credit cards do not affect your credit rating like bank accounts. You can load your card with cash at a local store or by purchasing reload packs. Prepaid cards can be used more easily and are safer than cash. A limit can be set on your card balance to control how much you spend.
Banks issue some cards, while government agencies issue others. Some cards are less secure than those issued by banks. Some cards also offer additional tools that may prove to be useful if you don't know what they are. You may also have to pay fees for certain transactions. It's important to check all terms and conditions before you sign up for one of these prepaid cards for unemployed.
Alternative credit cards
For those without a job, getting a credit card can be challenging. But there are many options. Alternative credit cards are available for those who do not have steady income but have good credit. There are options for those who have lost their job due to a career switch, a company restructuring, and/or redundancy.
People who are unable to get traditional credit cards may be offered alternative credit cards by banks. These cards let people load money on them without using a debit or credit card. They can then use the cards wherever credit cards accept them. They are not free and do not have a debit option.
Credit cards at 0% introductory rate
You might be able to get a 0% introductory credit card, even if your income is low. These cards usually come with no annual fees and can be used to make new purchases as well as balance transfers. Compare offers from multiple credit card companies before signing up for a card. Some offers are not valid in all areas and may be unavailable for you.
Make sure you carefully review the interest rate information before applying for a card with 0% introductory APR. Many cards have high-interest rates so make sure you pay your balance promptly. Use a credit card calculator to compare the different offers.