Being unemployed makes it difficult to manage your expenses, your income is limited, and it’s easy to get overwhelmed. This is especially true if you’re looking to get a credit card.
Many people believe they can’t get a credit card if they’re unemployed. This is not necessarily true. Credit card companies care less about your job status than you think.
Most credit card companies simply look at your reported income. They also consider your credit score, debt, and credit history. Unemployment doesn’t disqualify you from getting a credit card.
How Do You Get a Credit Card While Unemployed?
There are many ways to get a card. You can:
- Secure your credit card with an asset.
- Get a card jointly with a spouse or partner.
- Show proof of savings.
- Show unemployment income statements
Many banks are willing to give you a credit card while unemployed. One of these options will likely work for you until you’re hired.
Is It a Good Idea to Get a Credit Card?
The answer to this question varies. It depends on your background, finances, and support network.
If you need money temporarily between jobs, a credit card may help. If you need long-term cash flow, a credit card is not the solution. A credit card should not be an alternate source of income.
Only get a credit card if you can pay your minimum balance. If you can’t, look for social programs and support to help instead.
Will Credit Card Companies Know I Am Unemployed?
Credit card applications may ask about a place of employment. If you’re applying for a new card, you’ll leave this space blank. In this way, the companies will know you’re unemployed.
However, if you have an existing card, the company won’t be aware. They will only have that information if you give it to them. Most don’t require employment updates after your application has been approved.
How Can You Make Payments on a Credit Card Without a Job?
If you’re unemployed, you still need to pay your credit card. There are a few ways to do this:
- Contact the credit card company. They may have payment or forgiveness options.
- Don’t add to your existing debt. Try not to buy anything nonessential with your card. Keep costs low.
- Use your unemployment check if you have one. This money is meant to help with expenses.
- Use government support options. There are ways to reduce or defer your debt if you’re unemployed.
- Focus on the minimum. Temporarily, you may not be able to pay your card in full. Just be sure you’re paying the minimum owed.
- Continue the job search. The best way to alleviate this stress is by finding employment.