Banks usually issue credit cards based on an applicant's monthly income and credit history. The monthly salary of an individual determines his or her ability to repay the borrowed amount, and the individual's credit history determines his or her behavior toward repayment of the credit amount. So then how to get a credit card without a job?
It is not impossible to obtain a credit card without an income or salary, but it is extremely difficult. This blog will teach you how to apply for a credit card online without having any income.
Credit cards are a useful and powerful financial tool in today's world. It assists you in dealing with a short-term cash crunch, such as paying a restaurant bill at the end of the month. Credit cards can cover minor expenses that you can repay with your next month's salary.
Furthermore, paying your credit card bills on time helps you build and maintain a high credit score. This increases your creditworthiness in the eyes of banks and other non-banking financial institutions (NBFCs).
With a good credit history, you can easily obtain loans or new credit cards. Furthermore, many credit cards include features and services from which you can benefit. Many airports, for example, offer easy lounge access with a credit card. Similarly, you can earn points that can be redeemed with each credit card payment.
Credit card companies want almost every applicant to get a credit card; however, this cannot be done at the expense of late or non-payment of credit card bills. As a result, credit card providers must first determine how they intend to repay before issuing a credit card to an applicant.
You might be wondering ‘how can i apply credit card without a job’. You can apply for a credit card without providing proof of income or salary in one of the following ways:
1. Student Credit Card
Although student credit cards are not widely used, some credit card companies offer them. Student credit cards typically have lower credit limits to meet the specific needs of students. These credit cards, however, have usage restrictions and typically require collateral.
As a result, students will be required to show proof of part-time employment or obtain a card against any type of Fixed Deposit or Savings Account with the issuer. Unlike other credit cards, student cards do not have many features, but they do have no or very low joining and annual fees.
2. Secured Credit Card in exchange for a Fixed Deposit
A fixed deposit is one of the best and most common ways to get a credit card without income. A secured credit card is one that is obtained in exchange for collateral, such as a fixed deposit. In most cases, the card issuer acts as the lender, lending only on the basis of income to the borrower/credit card user, which is known as an unsecured credit card.
However, in the case of secured credit cards, the lender has no other security than fixed deposits if the card user fails to make payments on time. Card companies typically cap the card limit at 75-90% of the fixed deposit balance.
3. Mutual Funds Secured Credit Card
Similarly to applying for a credit card against a fixed deposit, one can apply for a credit card without providing proof of income by pledging mutual funds.
This also counts as a secured credit card because banks/card issuers can use the defaulters' holdings or mutual fund returns. They can get it to get the money back for the credit they lend to those who do not repay it.
4. A sufficient balance in an account
Credit cards are issued on bank statements that show a sufficient balance. So, if you want to apply for a credit card without having any income, you can do so by having a healthy bank balance.
This demonstrates that you have monetary inflows in your bank account, a proper credit & debit ratio, and sufficient funds for repayments. The lenders anticipate that you will make timely payments with available funds.
5. Add-on Card
An add-on card, as the name implies, is an additional credit card. If you already have a primary credit card, you can apply for a secondary credit card without providing proof of income.
When the first cardholder is a family member such as a sibling, spouse, or parent, this is possible. In addition, he or she must have a good credit history that earns the trust of card issuers for them to allow and issue another card. The supplementary/add-on card will most likely have the same benefits as the primary card.
6. Joint Credit Card
A joint credit card can be obtained in the same way that a joint bank account can. So, if you want to apply for a credit card but don't have any income, you can apply with someone who does. If the co-applicant qualifies for the credit card, you may apply jointly.
Issuers use the financial strength of the creditworthy cosigner to their advantage when they apply for a joint card. As a result, if you consider having a co-applicant, you can become an authorized user. In such cases, credit card companies determine the limit of each card based on the earning partner's monthly income.
There are a few factors to consider when applying for a credit card without income, whether you apply offline or online. As a cardholder or credit borrower, these factors affect your credibility and creditworthiness. Make sure that the following criteria are met:
1. Open a bank account
The most important requirement is to have a bank account. Generally, all credit card issuers issue a credit card against a bank account, which serves as a credible source for the providers. Salary income, self-employment income, and business income can all be included in a bank balance. It may also include a retirement fund or earnings from other investments.
2. A good credit score and history
Maintaining a good credit score requires timely repayment of loans and existing credit. Missed or late payments lower your credit score and result in a poor credit history, which makes credit card issuers question your creditworthiness. Paytm now allows you to check your credit score in a few simple steps. With a good credit score, you can also apply online for a credit card without submitting your pay stubs.
3. Debt and credit consolidation
All loan providers, credit card issuers, and credit lenders review your existing debt and credit history based on your repayment history. Before issuing a card, they check to see if you have a large amount of outstanding debt or if you have too many loans and debts in your credit history.
So, before applying for a credit card, you should first try to pay off as much debt as possible. Ascertain that you have NIL or a small amount to pay off.
Also, if you have too many loans, consider consolidating them into a single loan and repaying it as soon as possible. Too many loans give the impression that debts are piling up and lenders will not be convinced.
4. Develop a financial strategy
Savings, investment, and expenditure plans can help users keep track of their spending habits as well as cash reserves. It also keeps you out of frequent credit requirements and prevents you from piling up debt by making timely repayments. The issuers can see that you manage your money wisely and have the discipline to pay on time.
So can you get a credit card without a job? In today's world, many banks in the country issue credit cards to individuals without requiring them to provide proof of income. These are the following bank that does not require any proof of income:
Indian State Bank
The Bank of Baroda
Bank of Kotak Mahindra
Bank of Andhra Pradesh
The Axis Bank
India's Central Bank
Banks offer the following popular credit cards that do not require proof of income:
SBI Unnati Credit Card: The card offered by the country's largest public sector bank is backed by bank deposits only for the first year. The deposit made by the individual is released by the bank after 12 months. The card is ideal for those who require a credit card to pay utility bills, make payments, shop, and so on. To be eligible for an SBI Unnati credit card, the applicant must be an Indian resident aged 18 to 65 and have a minimum fixed deposit of Rs.25,000 with the State Bank of India.
Bank of Baroda Assure Credit Card: This is another credit card that individuals can obtain without submitting any proof of income. Bank of Baroda's offer to individuals over the age of 18 who have a fixed deposit account of at least Rs.25,000 comes with some wonderful benefits such as free insurance coverage, waiver of annual fees, and so on. The card is accepted worldwide and entitles cardholders to exclusive Visa benefits.
Ans: You can get a credit card based on your bank's fixed deposit account or if one of your family members already has a credit card with the option of add-on or supplementary cards.
Ans: Yes, you can get a credit card without filing an income tax return because no credit card companies require IT returns from their customers.
Ans: They are very useful because they have all of the features that a standard credit card has.
Ans: No, because HDFC Bank does not currently offer credit cards without an ITR or a salary slip.
Ans: The following banks give credit card without any income proof -
Ans: Yes, even if you don't work, you can get a credit card.
Ans: Credit cards are a useful and powerful financial tool in today's world. It assists you in dealing with a short-term cash crunch, such as paying a restaurant bill at the end of the month.
Credit cards can cover minor expenses that you can repay with your next month's salary. Furthermore, paying your credit card bills on time helps you build and maintain a high credit score.