Can You Get a Credit Card Without a Job?

Can You Get a Credit Card Without a Job?

You don't need a job to qualify for a credit card, but you do need a reliable source of income. Credit card issuers are required to consider whether you can make at least the minimum monthly payment before approving your application or setting your credit limit.

Many people without traditional employment—for instance, students, freelancers, retirees or stay-at-home parents—can qualify for a credit card using other sources of income or assets. Card issuers can consider most money that's regularly deposited into your bank account, or income you reasonably expect to continue receiving.

Several types of income sources can be used to apply for a credit card.

• Personal income: Money you earn from self-employment, gig work, tips or freelancing.
• Household income: Income earned by others in your household—for example, a spouse or parent—if you're 21 or older and have reasonable access to it
• Support payments and gifts: Financial support like regular alimony, child support, allowances or gifts deposited into your bank account.
• Investment and savings income: Passive earnings from interest, dividends or distributions from savings and investment accounts.
• Retirement and trust income: Regular payments or withdrawals from pensions, IRAs, 401(k)s or trust funds.
• Government benefits: Unemployment, disability payments, public assistance programs and Social Security benefits.
• Scholarships, student loans and grants: Money left over after paying your tuition and required education expenses.

Tip: If you're under 21, you must show that you personally have enough income or assets to make minimum payments. Issuers can't consider someone else's income unless they're a cosigner.

What to Do if You Can't Get Approved for a Credit Card

If you don't qualify for a traditional credit card, there are other ways to build credit and access credit card benefits.

Become an Authorized User

Ask a trusted friend or family member who manages their credit responsibly to add you as an authorized user on their existing credit card account. You'll be able to make purchases (if they agree) and their positive payment history will be added to your credit report and may help strengthen your credit profile.

Consider a Secured Credit Card

A secured credit card requires a refundable security deposit, usually equal to your credit limit. They're easier to be approved for because the deposit serves as collateral and reduces the card issuer's risk. As long as you stay consistent with on-time monthly payments, you can build credit and may eventually graduate to an unsecured card.

Get a Cosigner

If you can't get approved for a credit card alone, you can apply with someone else. A cosigner with established credit and steady income can help you qualify for a credit card. Keep in mind that both you and the cosigner are equally responsible for the balance and any missed payments.

Learn more: How to Get Approved for a Credit Card

What to Consider Before Applying for Credit With No Income

If you're unemployed or between jobs, it's important to understand the risks of opening a credit card without steady income.

• Your ability to pay: Credit card minimum payments are just a small percentage of your balance, which can make it easy to afford payments during periods of unemployment. However, remember that minimum payments increase as your balance grows. Making just the minimum payment also means you'll quickly accrue interest on the remaining balance.
• The impact of late payments: Late or missed payments can lower your credit score, lead to fees and make it harder to get approved for credit in the future.
• The cost of carrying a balance: With average credit card rates above 20%, paying only the minimum means you'll spend more on interest over time.
• The effect on your credit: Carrying a high balance increases your credit utilization ratio, which can lower your credit score. Try to keep your balance as low as possible.

Keep an Eye on Your Credit While You Search for a Job

Unemployment can strain your finances and make it difficult to keep up with bills. While you work toward your next opportunity, keep a close eye on your credit reports and scores.

You're entitled to weekly access to your credit reports from the three national consumer credit bureaus—Experian, Equifax and TransUnion—through AnnualCreditReport.com. Monitoring your credit with Experian can help you spot changes early, before they affect your ability to qualify for credit later.

If you're struggling to make payments, contact your lenders. Many offer hardship programs or modified repayment options for people experiencing financial challenges. Staying proactive can help you avoid late payments, collections and credit damage.

Tip: Make sure your accounts are current if you live in a state where employers are allowed to check credit.

The Bottom Line

Getting a credit card without a job is possible, but it requires another source of income or assets. If you qualify, look for cards that offer low interest rates or an introductory 0% APR promotion to help you manage expenses while you get back on your feet.

If you're already struggling to pay your existing bills, reconsider whether adding another monthly bill (and its potential high interest charges) will help your financial situation. No matter your situation, it's important to borrow responsibly. Use your credit card for essential purchases only and aim to pay your balance in full as soon as you can. Responsible use can help you protect your finances and build stronger credit.