Can You Get a Credit Card Without a Job?

When you don’t have a job, you might start to question your financial options, including whether or not you still qualify for a credit card. Like most things, there are various layers to this topic, and it’s not always a cut-and-dry answer.

Key Takeaways

Getting a credit card usually requires income. That could be from a traditional job, or alternative sources:

• Self-employed income as a business owner, freelancer or contractor
• Reliable passive income from investments, an inheritance, or intellectual property sales
• Rental property income from real estate, apartments, or short-term vacation rentals
• Retirement income from a 401(k), IRA, or pension

Can You Get a Credit Card Without a Job?

Yes, it’s possible to get a credit card without a job, as long as you have some sort of steady, reliable income. This proves you have the resources to pay for any charges you make. After all, nobody wants to lend you money if they think you’ll default on your bills.

Your relationship with a creditor is a two-way street. They let you spend their money now, and you agree to pay them later for the privilege. Obviously you can’t do that if you don’t have the funds. So when you apply for a credit card, you’ll usually have to include your annual income.

Listing Income on Your Application

The Credit Card Accountability Responsibility and Disclosure Act of 2009 — or the Credit CARD Act for short — prohibits creditors from giving you a card without considering your ability to repay the debt. Because of that, you usually have to disclose your income on a credit card application. After you’ve been approved, keeping your account records current and updating your income can help you get a credit line increase.

Don’t forget that when your credit card application asks for your income, it’s referring to your total income from all sources. So that could be a job, but it doesn’t have to be. Lottery and gambling winnings don’t count, but many other sources beyond a standard paycheck do:

• An inheritance, allowance, monetary gifts, or trust fund payments
• Compensation from a legal settlement, including a resolved lawsuit, accident, or other personal injury case
• Alimony, child support, or other maintenance payments
• Student grants, scholarships, or other financial aid
• Government benefits like Unemployment Insurance, Social Security, Supplemental Security Income (SSI), Disability Insurance or Worker’s Compensation
• Business income including self-employment, freelancing, contract work, gig work, side hustles, affiliate marketing or influencer activities
• Passive income or royalties from your intellectual property, content creation, patents, land rights or franchise
• Short-term or long-term rental income from a property, building, vacation rental, parking space, or equipment
• Investment income or dividends from a brokerage account, stocks, bonds, certificate of deposit (CD), or cryptocurrency
• Retirement income from your pension, 401(k), IRA, or guaranteed income annuity
• Wages or salary from your spouse or partner that contribute towards shared household income

If you have a steady, reliable income to draw from, you’re seen as less risky to potential lenders. It may even compensate for a lower or non-existent credit score. Having a checking or savings account with the same bank may also make approval easier, especially if you have a healthy balance.

On the flip side, having little or no income means you may be denied credit, no matter how good your credit score is. Income is an important part of the credit-granting process and determining your credit limit.

Applying for a Credit Card Without a Job

If you don’t have a job, and you’re not approved for a regular credit card, chances are you still have some options. But you might need a bit of help to make it happen.

Applying for a secured card

Secured cards are designed to let people with limited credit history or poor credit scores get a card by paying a collateral deposit up front. Typically, your credit line will be equal to your deposit — so putting $300 down gives you a $300 credit line to use.

If it seems strange to pay for credit, think of it as a means to prove yourself. You can establish positive credit and payment history by using and paying off the card, and once you’ve established your trustworthiness, you can graduate to an unsecured card. At that point you get your deposit back, and sometimes even with interest.

Becoming an authorized user

If you’re under 18 or you don’t want to get a secured credit card, you can become an authorized user on someone else’s account. Maybe you have a family member, like a parent or a spouse, who is willing to let you share. As an authorized user, you receive your own card with your name on it, and can use it just like any other credit card.

This requires significant trust from the primary cardholder, because they’re responsible for your charges, and their finances can be impacted if you max out their credit line, go over the limit, or don’t help pay the bill. On the other hand, they can earn rewards from your spending, and your credit score may receive a boost if the creditor reports positive activity to the credit bureaus for both users.

Having a co-signer or proof of income

The Credit CARD Act put new rules in place to protect young consumers, and having a co-signer or proof of income became the only ways someone between 18 and 21 could qualify for a credit card. Most major credit card companies no longer allow co-signers, but some smaller banks or credit unions might.

Submitting documentation that proves you have the financial means to pay your bills is usually still a viable workaround for those starting their credit journey. In fact, you may be asked to verify your income at any age, which could include submitting a tax return or pay stub. But if you’re under 21, the income has to be your own, so some of the alternative sources we’ve talked about won’t work.

Bottom Line

Having a job is not necessarily required to get a credit card, but having an annual income usually is. And of course, getting a raise, finding a better-paying gig, or tapping into another income stream is nearly always beneficial for your personal finances.

Another good thing to do is establish a positive credit history by making purchases with a credit card and paying your bill on time every month — and the full balance, if possible. If you’re looking for a credit card to help you on your financial journey, see if you pre-qualify for one from Credit One Bank. You may find your perfect card, even without perfect credit, and checking doesn’t impact your credit score.