How The Unemployed Can Still Be Approved For A Credit Card
When you’re asked to provide income, you can include all kinds of sources: investments, social security, disability, child support and alimony. Married applicants can report any household income, even if they are not employed at the moment. The Credit CARD Act of 2009 stopped this reporting of income to keep adult children from using their parent’s income to get a line of credit. But, the rule also denied credit to non-working spouses. The act was amended to allow a spouse’s income along as there is access to it.
How Else Can You Apply For Income
Secured Credit Card
If your household doesn’t have a lot of credit or it’s not enough, you have the option for a secured credit card. It works similar to an actual credit card, but you’ll need a refundable security deposit to get the account going. Most secured card applicants are approved, but they need to verify their identity and prove there are not pending bankruptcies.
After this card is opened, monthly statements will be sent out, and the minimum monthly payment must be paid before the due date. If a balance is carried over to the next month, the user will incur interest charges at the issuer’s noted rate. They also offer the security you may want during this trying time. They may also offer purchase protection benefits and travel insurance.
Ask For A Co-Signer
You could also ask someone to co-sign the credit card application. Do this though, and they become responsible for the repayment. If one person doesn’t pay, the other will need to.
Become An Authorized User
Another way to attain credit is to become an authorized user on another person’s account. However, the main cardholder is the person responsible for the debt.
Credit cards are important to many Americans – employed or not. And, you can boost your chance for one if you look at all income sources – not just your own.
If you decide a new credit card should be added to your wallet, you should first know how your credit is doing. What kind of score do you have? After all, your credit score and a report will dictate what kind of rate you can expect. You can check out CreditKarma.com or Credit.com for information about your credit report.