In today’s time, people have reduced their cash holding. People like to pay for their daily expenses through various digital mediums. With this, everyone sometimes needs more money than their income. In such a situation, the credit card acts as an emergency fund. But credit cards are issued by banks only to those who meet the eligibility criteria of banks. Most banks ask people for proof of employment before accepting a credit card request. In this situation, unemployed and self-employed people face difficulties in getting credit cards. Along with this, before issuing the credit card, information about your income check, income tax return, salary etc. is taken by banks. Therefore, through this article, we are going to give information about non-job seekers to get credit cards.
How to get a credit card if you do not work?
Income matters far more than a job to get a credit card. If you do not have a job, but your bank account has money inward and outgoing, you can get a credit card. For this, you just have to show proof of your income in the bank and request the bank to get a credit card. Income shown to the bank may come from business, child support, alimony or royalty. You can also earn income from dividends, professional fees or freelance work and get a credit card.
Can students have a credit card?
If you are studying in college, you can get a credit card. To qualify for a credit card you will need investments, trust funds, or certain financial assets. If you have a sufficient amount of FD, you can easily get a credit card. Before choosing a credit card option, select the appropriate bank by looking at the various offers offered by different banks.
Receive Credit Card through Co-signer
The co-signer acts as a guarantor for your credit card in the bank. In addition, the co-signer is equally responsible for the payments. The credit score of the co-signer is also affected by overuse of credit card limit and non-payment by due date. The parent or guardian is usually the co-signer of the credit card. However, co-signers can be accepted by anyone other than bank relatives.
How to get a secured credit card?
If you do not have a job, you can still get a secured credit card. This credit card can be secured on fixed deposits. Banks specify a minimum fixed deposit amount before approving a secured credit card. In such a card, if you are unable to pay the credit card amount, the bank will break the FD and recover the outstanding amount. For a secured credit card you will need:
- Your FD should be at least 10 thousand rupees to 20 thousand rupees.
- Banks limit credit card limits to 75-80% of the FD value.
- The period of FD should be at least 6 months.
- Secured credit cards offer an interest free period of 45-55 days.
Can take supplementary credit card
If you do not have a job and do not have any income from other sources like FD, then in this case you can take a supplementary credit card. If a member of your family has a primary credit card, banks offer a supplementary credit card. In this way, housewives and students can easily get supplementary credit cards.
A supplementary credit card is an additional credit card that is issued with the primary credit card. Banks issue supplementary credit cards to the primary cardholder along with his / her parents, children, siblings, spouse. In such a card the primary cardholder shares the credit limit with the supplementary cardholders. All transactions made using both credit cards get the same consolidated statement. The primary cardholder has to pay the expenses incurred by the supplementary card holders. The primary cardholder should closely monitor all transactions made with the supplementary card to keep the credit utilization ratio low.
The credit utilization ratio should not exceed 30-40 percent. If you regularly use more credit cards than this, your credit score may be affected. Credit card companies can issue 4-5 additional (supplementary) credit cards for free. You can add more credit cards to the primary credit card only by paying an annual fee. The primary cardholder can also set the limit for supplementary cards.
