What proof of income is required?

In most cases, the card issuer will ask for proof of payment such as a pay stub or W-2. If you're getting interest from investments you may need to provide dividend statements, or statements from your retirement fund. Public assistance income will also be accompanied by some kind of statement you can use, and if all else fails you can use your bank statements to prove your income.

Do I need a job to be approved?

While you don’t need to have a job to qualify for a credit card, you’ll need to be able to show that you have income. Income is a key factor in whether or not you get approved, so it’s best if you can show any kind of income. This could include Social Security payments, disability payments, alimony, child support or investment income.

Do people on state benefits qualify for a credit card?

Being unemployed won’t stop you from getting a credit card, as issuers are more interested in your income, rather than your job. They also look into your credit history, existing debt, and credit score. As long as you have a source of income, you’ll still be able to apply for a credit card.

Can I get a credit card with no income?

If you don’t have enough income to qualify on your own, don’t worry, because there are other options to get credit cards for people with no income: Ask to be an authorized user on someone else’s credit card, as this is the most effective way to get a card without having to qualify for one. Of course, you will still have to pay back the amount of your purchases to the family member or friend who owns the account. Look for someone who’s willing to be a co-signer, someone who has a good credit score and income who will jointly apply with you for a credit card. Both you and your co-signer will be legally responsible for repayment of any balance on the card, even though you may be the only one usually doing the purchasing and repaying.

Is there a minimum amount of income required for any credit card?

The short answer is, not really. Since 2009, the Credit Card Accountability, Responsibility and Disclosure Act (CARD Act) placed new provisions to protect consumers by having no minimum income requirements. It does, however, prevent credit card issuers from approving accounts without assessing the applicant's ability to make repayments.

Are credit limits lower for people with lower income?

Yes, since your credit limit is partly determined by your income. However, this isn’t the only factor. Other factors include your debt-to-income ratio, your credit score, and if you’re just starting out with credit or are rebuilding your credit history.

How much income is considered low?

According to the Pew Research Center , nearly one-third of American adults (29%) live in low-income households, with the median income calculated to be $25,624 in 2016.

Are Discover cards for poor people?

Not at all. In fact, Discover cards are a great option to take when you’re trying to rebuild your credit, since they offer low fees along with the benefits and rewards that other more expensive cards have.

Can I get a credit card for free?

Yes. Firstly, there's a wide choice of credit cards with no annual fee. Secondly, if you use your card responsibly, only buying what you can afford, not taking cash advances from the card, and always repaying the full balance on time each month, you will pay no interest charges, cash advance fees or late payment fees. The only additional fees you might pay are foreign transactions fees for buying goods online from a supplier based outside the United States.

Compare low income credit cards for the USA

Low income credit cards

Compare credit cards for people with a low income.

Updated Aug. 5, 2022 |

Having a low income does not prevent you from having a credit card, which is a convenient way to make in-store purchases, pay bills and shop online. Using a credit card responsibly is also one of the easiest ways to build a positive credit history and achieve a good credit score. Fortunately, some card issuers have made it easy to apply for a credit card even when your income is low.

Best types of credit card for low income earners

When your income is low it's more important than ever to extract the best value from your card for the lowest cost. You may want to consider a credit card with no annual fee — even though it may have no discounts or rewards — to keep your costs low. Sometimes, though, it's better to pay a small annual fee if you can get a card which gives store discounts or cash back that add up to more than the cost of the annual fee. It's even possible to get a cash back credit card with no annual fee.

Other benefits of credit cards

Aside from cash back and store discounts, many cards come with other free benefits attached, possibly including:

Purchase protection This cover protects items bought with the card against damage or theft within 90 days of purchase. You will need to file a police report in case of theft.
Return protection. Cover is activated when a merchant won’t accept returned items bought with your card, within 90 days of purchase.
Travel insurance. Some cards include a variety of insurance benefits when you use the card to pay for travel. You may be covered for accidents, trip interruption, delay or cancellation and lost luggage.
Reward points or travel miles. Instead of giving rewards as cash back into your account, some cards let you earn reward points or travel miles as you spend. You can redeem the points for gift cards or travel, or merchandise from a n online catalog.

Alternatives to a standard unsecured credit card

If you can't be approved for a credit card because your income is too low, there are other ways to make purchases without having to use cash:

Secured credit card. A standard credit card is unsecured. This means that when you use the card to make a purchase, the card issuer is giving you a temporary loan without asking for any collateral to secure the loan. But if you're unable to be approved for a normal credit card because your income is too low, you could still get a secured credit card if you can deposit some cash with the card issuer. For example, if you can deposit $500, you may be approved for a card with a $500 credit limit. The card issuer could use your deposit to repay the card balance if you fail to make repayments. The best way to use a secured credit card is to use it regularly, but only purchase what you can afford to repay each month. Your good financial behaviour will be reported to a credit bureau and your credit score will improve. In time, you could be approved for a standard unsecured credit card, and have your deposit refunded.
Debit card. A debit card is linked to your bank account. You use it in the same way as a credit card, but to spend your own money, not the bank's. Your spending is limited by the amount of money you have in your bank account, so you can't get into debt by spending more than you can repay. There is no annual fee to pay. But using a debit card will not improve your credit score, because there will be no report to a credit bureau.
Prepaid card. A prepaid card works in much the same way as a debit card, but instead of linking it to your bank account, you pre-load it with a fixed amount of cash. Once you have spent the amount on the card, you may be able to top it up with more cash. Like a credit card, it gives you the convenience of paying in-store and online with a card, but without the risk of getting into debt or the potential benefit of lifting your credit score.
Co-signer. You could apply for a credit card jointly with someone with a reasonable income who co-signs the application. Both of you will be individually responsible for repayment of the whole balance if the other fails to pay.
Buy Now Pay Later. Financial services such as Sezzle, Klarna, and Afterpay allow users to shop for any item they need without having to pay for it first. You can sign up for an account instantly at the checkout, in-store or online. Account holders are given options on how to pay back the money borrowed, which can be divided into several interest-free payments over a number of weeks. There is no formal credit or income check, and as time goes by and you continue to make your repayments on the due date, the amount you can spend in this way will increase. There are no annual fees or interest charges, but fees apply if you are late with your repayments.

Consumer Financial Protection Bureau

Thanks to the Consumer Financial Protection Bureau, it’s now more likely that someone with low income will be treated fairly when applying for a credit card. For example, card issuers cannot discriminate against you if you receive public assistance income.