Credit cards
Banks
Getting started!
estate agents
Mortgages
Insurance
Loans
Getting started!
by Maurie Backman |
Published on September 21, 2021
Many or all of the products here come from our partners. We can earn a commission from offers on this page. This is how we make money. But our editorial integrity ensures that the opinions of our experts are not influenced by compensation. Conditions may apply to the offers listed on this page.
Here’s what you should know about applying for a credit card when you don’t have a job.
There are several factors that credit card issuers consider when deciding whether to accept you as a new applicant. For example, your creditworthiness plays a big role in determining your eligibility for a new card. To a card issuer, getting too low a score means you may not be the most trustworthy borrower.
But what if you’re unemployed? Does that mean you can’t qualify for a credit card?
You’d think you could. When you use a credit card, you calculate expenses and pay for them at the end of your billing cycle or over time. And if you don’t get a paycheck, how are you going to make those payments?
The good news is that you are not automatically excluded from getting a credit card if you are unemployed. Here’s what you should know.
Expert tips and tricks delivered to your inbox that can save you thousands of dollars. Register now for free access to our Personal Finance Boot Camp.
By submitting your email address, you consent to us sending you money tips along with products and services that we think may interest you. You can unsubscribe at any time.
Please read our privacy policy and terms and conditions &.
While credit card issuers take income into account when deciding whether to approve applicants, that income does not have to come from a job per se. If you don’t work but have a decent amount of money investing in a brokerage account, owning a rental property, or having income from some other source, you can qualify for a credit card.
Similarly, retirees often qualify for new credit cards, although they have no job. If you are retired and have Social Security or are receiving Social Security along with distributions from a retirement plan, all of that count as income. So not working doesn’t necessarily hurt a credit card application.
That is, if you don’t have a job and no other sources of income to point out, you may be denied a credit card. After all, credit card companies want the peace of mind that you’ll be paying your bills.
If you’re temporarily unemployed and need a new credit card right away, you may still have options. You can try co-applying with a family member who has an income. Some credit card companies allow you to apply to a co-signer – someone who agrees to make your payments when you can’t. Of course, asking someone to do it is a big deal, but if you’re temporarily stuck in a traffic jam, someone who trusts you may be ready to help you.
Another option is to be an authorized user to become a family member’s credit card. For example, your siblings may allow you to use their credit card if you agree to pay all fees and commit to a spending limit.
You don’t necessarily have to have a job to qualify for a credit card. However, being unemployed can make qualifying difficult if you have no other income. If you are unemployed for the time being, it may be worth waiting until you have a steady paycheck again before applying for a new card. Waiting could also put you in a better position to qualify for a really good card with a great rewards program or other perks that you will enjoy.
If you have credit card debt, these top funds will keep you safe – Transfer card an introductory APR of 0% until 2023! In addition, you do not pay an annual fee. These are just a few reasons our experts rate this card as the top choice for debt control. Read the full review of The Ascent for free and apply in just 2 minutes.
Maurie Backman is a personal finance writer who covers everything from savings to retirement to healthcare. Her articles have appeared in major media outlets such as CNBC, MSN, and Yahoo.
We strongly believe in the Golden Rule, which is why editorial opinions are ours only and have not been previously reviewed, approved or endorsed by included advertisers.
The Ascent does not cover all offers on the market. The Ascent editorial content is segregated from The Motley Fool editorial content and is produced by a different team of analysts.
Many or all of the products here come from our partners. We can earn a commission from offers on this page. This is how we make money. But our editorial integrity ensures that the opinions of our experts are not influenced by compensation. Conditions may apply to the offers listed on this page.
The Ascent is a Motley Fool service that evaluates and reviews critical products for your daily money affairs.
By submitting your email address, you consent to us sending you money tips along with products and services that we think may interest you. You can unsubscribe at any time.
Please read our privacy policy and terms and conditions &.
Keywords: