Credit cards are an important part of our lives. We cannot imagine our lives without the plastic money. The financial institutions and banks necessitate proof of employment to issue a credit card. For a credit card, documents such as salary statements, income tax returns, etc are required. If these documents are not available, credit cards will not be issued. This makes it hard for unemployed people to get hold of a credit card.
A credit card is an exceptionally beneficial service. Use the credit card properly and correctly to avoid a financial quandary. Not having a job is not a barrier to getting a credit card if you have a good credit history. Even old or retired people require credit cards. These people do not have a job however; they are still entitled to get a credit card if they have sufficient funds.
There are certain ways in which you can get hold of a credit card without income proof. Take all vital steps mentioned below so that your application for the credit card is not turned down.
The banks issue credit cards instantly provided all your documents are in place. Buying things that you love with your credit card is easy. Ease of use and convenience are the prime reasons why people want a credit card.
How to Get a Credit Card without an Employment Proof?
Below we have listed ways to get a credit card if you are not employed.
Show Income Proof To Get a Credit Card
You may not be employed in any company and you can still have a credit card. Now, this is interesting. We will tell you how. In many cases, people have other sources of income such as dividends from mutual funds, interest income, royalty income, etc. This makes them eligible to apply for a credit card
For such people, the income proof that they have is sufficient to get them a credit card. So they do not have to worry about the employment thing. Having a steady income is more significant than the job if you require a credit card. People with no job, but a huge inflow of money can easily apply for a credit card. So, a housewife or a student can have a credit card even if they do not have a job.
All that is required is the proof of income and your credit card request will be processed. The income can be from any source- it can be in the form of rent, child support, business profits, or even alimony. Some banks demand records of the income tax return. The bank checks whether an applicant is in a position to pay the credit card dues. And when they ascertain that it is easy for them to pay, the bank issues credit cards to such applicants without any hassle.
Issuing Credit Cards to Students
Students in a college can also apply for a credit card. However, for students to be eligible for a credit card there is the requirement of either a trust fund or an investment. They can even have any key financial assets in their name. Some banks issue a credit card to students if they already hold an account with them and there are sufficient funds in it. Check out the different student credit card offers that the bank gives and then go in for the offer that is apt for you.
Sometimes students do not stay in the same town as their parents. Rather than providing them cash, it is prudent to provide them a credit card and set their spending limit. A limit precludes chances of overspending via a credit card. This is a good way to teach money management to children. It makes them aware of their spending limit.
Credit Card With the Help Of A Co-Signer
If you are wondering how to get a credit card, the great way is with the help of a co-signer. A co-signer is a person that has good credit. He/she serves as a guarantor for you. The co-signer holds the responsibility for the payments that you will have to make.
If any kind of payment default takes place, the credit score of the co-signer also suffers. Ordinarily, the guardians or parents become the co-signers. Nevertheless, few banks allow non-related people to become a co-signer for you. So, a co-signer will enable you to get a credit card without showing income or employment proof.
Applying for a Credit Card against Savings
Amazingly, you can also apply a credit card against savings that you have in your account. In case you do not have a secure job or you are self-employed, you can still get a secured credit card. There should be money in the savings account and you will get a credit card.
Provide the bank with proof of funds and the bank will happily furnish a credit card. These funds in the bank serve as collateral. They help you get a credit card without a hassle. They are akin to a security deposit for your credit card. In case a person fails to make the payment, deduction happens from the savings account balance. Alternatively, deduction can be made from the security deposit.
Secured Credit Card against FD (Fixed Deposit)
Another popular way to get a credit card is to get it issued against the fixed deposits. In this case, the fixed deposits serve as collateral. The credit limit for credit cards issued against a fixed deposit is generally up to 80-90 percent of the total amount of fixed deposit. So, go ahead enjoy spending with a credit card that is issued against the fixed deposit.
Spend your money carefully, as it takes a huge amount of effort to earn it. Always be careful with the credit card schemes. Several banks offer amazing EMI schemes that enable you to shop for things of your choice with your credit card.
Make your credit card payments on time and you will not have to pay anything as interest. Always read the details of the scheme in the fine print. This precludes any chances of error or a slip later on.
Add-on Credit Cards
In case a person does not hold any income proof or investments in fixed deposits, he/ she can still have a credit card. The option, in this case, is the supplementary or add-on credit card. An add-on card is an additional card that you get under the ambit of the primary credit card. It is usually availed by the spouse, children, siblings, parents of the primary cardholder. A thing to note in this regard is that children should be above 18 years of age.
The person that holds the primary credit card has to offer permission for the add-on credit card. This type of arrangement helps the students and homemakers. The add-on card earns rewards for the primary cardholder. However, any expenses that incur on an add-on card are directed towards the primary cardholder. Therefore, it is significant that the primary credit cardholder keeps a tab on expenses. The add-on card is just to aid people around you. The credit utilization ratio for the add-on card should not cross 40%.
Above-mentioned are some ways how a person can have a credit card without being employed. Ideally, it is prudent that you apply for a credit card only when you have stable earnings. This enables smooth repayment of credit card dues.
However earnings change their form. People retire after a certain age. And they still need a credit card so that they do not have to carry cash wherever they go. So, resort to the methods mentioned above and apply for your credit card.
A credit card ensures fast and easy money. Nevertheless, you should be cautious where you spend. Be aware of all the spending that you do via the credit card. A credit card can be a huge help only if you use the same judiciously. Pay all bills on time lest the interest will build-up, thus throwing you in a vicious cycle of debt. Pay the full amount rather than paying just the minimum amount.