How To Get A Credit Card Without Income?

Normally, banks issue a credit card based on the applicant’s monthly income and credit history. An individual’s monthly salary determines his/her capability to repay the borrowed amount and the individual’s credit history determines his/her moral behavior towards repayment of the credit amount. While it is not impossible to get a credit card without income or salary, it is still quite difficult. Learn about the various ways to apply online for a credit card without having any income in this blog.

Why should you have a Credit Card?

Credit cards are a useful and powerful financial instrument in current times. It helps you to deal with a short-term cash crunch such as paying a bill at a restaurant at the end of the month. Credit cards can take care of small expenses, which you can repay with your next month’s salary.

Moreover, making timely payments of your credit card bills helps you keep your build and maintain a high credit score. This improves your creditworthiness in the eyes of the banks and non-banking financial institutions (NBFCs). A good credit history allows you to get loans or even new cards quite easily. Also, many credit cards come with certain features and facilities that you can benefit from. For instance, you can get easy lounge access in many airports with a credit card. Likewise, you can get points that can be redeemed with every payment made through a credit card.

How to Apply for a Credit Credit without Income or Salary Proof?

Credit card providers want almost every applicant to get a credit card; however, it cannot be done at the cost of non-repayment or delayed credit card bills. Hence, credit card providers need to ensure how you are going to repay, and it is only after that, that they can offer a credit card to an applicant.

To apply for a credit card without income or salary proof, you can choose either of the following ways-

1. Student Credit Card

Although student credit cards are not so popular, some credit card providers extend the facility. Student credit cards usually come with lower credit limits to meet the specific requirements of the students. However, these credit cards have limitations on usage and generally require collateral. So, students will have to show part-time job proof or get a card against any kind of Fixed Deposit or Savings Account with the issuer. Student cards do not have many features unlike other credit cards but they come with NIL or very low joining charges and annual fees.

2. Secured Credit Card against Fixed Deposit

One of the best and most common ways to get a credit card without income is to get it against a fixed deposit. When you get a credit card against collateral such as a fixed deposit, it is known as a secured credit card. In general cases, the card issuer acts as the lender that lends to the borrower/credit card user only on the basis of income, which is known as an unsecured credit card. However, in the case of secured credit cards, there is no other security to the lender apart from fixed deposits if the card user delays/missed payments. Card issuers usually cap the card limit at 75-90% of the fixed deposit’s balance amount.

3. Secured Credit Card against Mutual Funds

Just like a credit card against a fixed deposit, one can apply for a credit card without income proof by pledging mutual funds. This also counts as a secured credit card as banks/card issuers can use the holdings or mutual fund returns of the defaulters. They can acquire it to get the money back for credit that they lend to those who fail to repay.

4. An account with Sufficient Balance

Card providers give credit cards on bank statements that display a sufficient balance. So, if you wish to apply for a credit card without income, you can get one by showing a healthy bank balance. This proves that you do have monetary inflows in your bank account, maintain a proper credit & debit ratio, and have enough funds for repayments. The providers expect you to make timely repayments with available money.

5. Add-On Card

As the name states, an add-on card refers to an additional credit card. When you are already a primary cardholder, you can get a secondary credit card without income proof. This is possible when the first cardholder is a family member such as a sibling, spouse, or parent. Also, s/he must have a good credit history that wins the trust of card issuers to allow and issue another card. Most likely, the supplementary/add-on card has the same benefits as that of the primary card.

6. Joint Credit Card

Just like a joint bank account, you can also get a joint credit card. So, if you wish to apply for a credit card without income, you can apply with someone who has income proof. If the creditworthiness of the co-applicant qualifies for the credit card, then you may apply jointly with your partner. It is the financial power of the creditworthy cosigner that issuers leverage to your advantage to have a joint card. Therefore, you become an authorized user if you consider having a co-applicant. Credit card providers decide the limit of each card in such cases based on the monthly income of the earning partner.

Important Factors that Affect Creditworthiness

Whether you go with an offline or an online application for a credit card without income, there are a few factors that you must keep in mind. These factors affect your credibility and creditworthiness as a card user or credit borrower. Make sure you maintain the following criteria-

1. Bank Account

The foremost important thing is to have a bank account. Mostly, all card issuers give a credit card against a bank account that acts as a credible source for the providers. Bank balance can include salary income, self-employment source of income, as well as a business income source. It can also have a retirement fund or income from other investments.

2. Good Credit Score & Credit History

It is important to maintain a good credit score by making timely payments of loans and existing credits. Missed or delayed payments affect the credit score and lead to a poor credit history, which disapproves of your creditworthiness in the eyes of the credit card issuers. You can now check your credit score with Paytm in a few simple steps. With a good score, you can also apply online for a credit card without salary slips.

3. Credit and Debt consolidation

All loan providers, card issuers, and credit lenders check the existing debt and the credit history as per your repayment behavior. They check whether or not you have a large outstanding debt amount before issuing a card or if too many loans and debts exist in your credit history. So, first of all, you must try to clear off the debt as much as you can before applying for a credit card. Make sure you have NIL or a minimal amount to pay off. Also, if you have too many loans, then consider consolidating them into one and repaying them as quickly as possible. Too many loans create a negative impression of debts piling up.

4. Have a Financial plan

Having a financial plan of savings, investment and expenditure always helps to keep a check on the user’s spending habits as well as cash reserves. It also keeps you away from frequent credit requirements and does not let you pile up your debt by making timely repayments. The issuers can see that you manage your finances wisely and that you have the discipline to pay on due dates.

Wrapping it up:

Credit cards open up a bunch of financial possibilities. They can help in times of need when dealing with cash shortages. They have reward points for each transaction and are feature-packed. Although most credit card providers need income proof, you can still apply for a credit card by showing other modes of repayment such as getting a credit card against fixed deposits, mutual funds, bank accounts, etc.

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FAQs
What are the documents required to apply for a credit card without an income?
The documents required to apply for a credit card without an income are:
  • Bank statements/bank account details
  • Details of fixed deposits (FD) or mutual funds (MF) for a secured credit card (CC)
  • Address proof such as Aadhaar, Voter card, lease/rent agreement, property papers, ration card, etc.
  • Identity evidence like Aadhaar, Voter ID, passport, driving license, etc.
  • PAN Card
  • Age proofs such as birth certificates, school certificates, etc. for students
  • Enrollment slips, admission papers, college IDs, and others for students
Can I get a credit card without ITR (Income Tax Returns)?
Yes, you can get a credit card without ITR (Income Tax Returns). Card issuers don’t ask for details of ITR. At times, you may need it when you apply for credit cards without salary slips.
Can I get a credit card without a job?
Yes, you can have a credit card without a job or salary slip, but in such a case you either need to show other sources of income or a good bank balance. You can also get a secured credit card against fixed deposits or mutual funds.
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