Unemployed people should look for secured credit cards, such as the Bank of America Unlimited Cash Rewards Secured Credit Card and the Capital One Platinum Secured Credit Card. These cards are the easiest to be approved for and don't require income verification. Although you will need collateral, a secure card is one of easiest credit cards to be approved for.
Minimum income requirements
In some cases, it may be difficult to determine if you qualify for a card if your income is not sufficient. For a creditcard to be approved, you need to have an income above the minimum. A credit card with a $1,000 credit line will not be granted to you if your monthly income falls below that amount. If you don't have the income required, you can always list income from third parties such as your spouse, partner, or other sources. You may be able to apply for credit cards if you are receiving income from unemployment benefits.
In recent years, several alternative credit cards have entered the market. These credit cards are often subject to income requirements and may have nontraditional underwriting guidelines. These cards can be a great alternative for those with low incomes and no credit.
Secured credit cards
A secured credit is a great way of rebuilding your credit. They do not require a credit check, but they do require a deposit. You can spend more on secured cards than you deposit, but the credit limit for a secured card is generally equal to that amount.
One of the advantages of secured credit card is that they report to credit bureaus. You can even upgrade to an unsecured card after a certain time. This can give you the ability to apply for a larger credit limit in as little as 6 months. You can even obtain a higher limit than your security deposit, although it is rare.
Prepaid credit cards
Prepaid credit cards are a convenient alternative to checking accounts. Prepaid cards are not linked to your credit score, unlike bank accounts. You can load your card by buying reload packages or cash at a local bank. 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.
Some cards may be issued by banks. Others by government agencies. Some cards aren't as secure as traditional banks. Some cards also offer additional tools that may prove to be useful if you don't know what they are. Additionally, you may have to pay fees for certain transactions. Before you sign up for one these prepaid cards, it is important to read all terms and conditions.
Alternative credit cards
The process of obtaining a creditcard can be difficult for those who are unemployed. But there are many options for those in this situation. Individuals without steady income and a strong credit history can apply for alternative credit cards for the unemployed. There are many options available to you whether your job has been lost due to a career move, company restructuring or redundancy.
Alternative credit cards are offered by many banks to those who do not have access to traditional credit cards. These cards allow users to add money to them without the use of a debitcard. They can use them anywhere credit cards will accept. These cards have the downside of having fees and no debit option. However, they can still be a great choice for people who don't already have credit cards.
Cardholders can get a 0% introductory APR credit card
You might be able to get a 0% introductory credit card, even if your income is low. They typically have no annual fees and can also be used to make new purchase or transfer your balance. But, before you decide to apply for a credit card, compare offers from various card issuers. Some offers are not valid in all areas and may be unavailable for you.
When you are applying for a 0% introductory APR credit card, make sure to review the interest rates on the card carefully. Most cards have high regular interest rates, so be sure to pay off your balance as soon as possible. Use a credit calculator to compare different offers.