Credit cards for people in low-income groups
There could be many reasons you’re in a lower income bracket. You could be unemployed, you might have recently become self-employed or perhaps you took a break from work.
If your income is low, it might be difficult to get accepted for credit. That’s often because, without money coming in regularly, many credit card providers may see you as a high-risk borrower and unlikely to make timely repayments. This could lower your chances of getting approved for credit, or it can even mean your application for a credit card is rejected.
Credit cards for the unemployed
If you’re unemployed, banks may deem that you have no form of regular income to pay back any money you borrow, unless declared otherwise from other sources outside of a regular salary.
Because of this, lenders could see you as a higher risk and be more reluctant to lend you money. Therefore, it can be more difficult to get credit cards if you're unemployed.
Can I get a credit card if I'm unemployed and have a bad credit score?
Having a bad credit score can limit your credit card options. If you’re also unemployed, your options might be even more limited.If this is the case, a credit builder credit card could help as the lending criteria isn’t as strict as on some other cards. That’s because these cards are specially designed to help people build their credit score.
Things to consider if you’re unemployed and need a credit card
We know that being out of work and having no steady income can be challenging.
Being unemployed won't directly have an impact on your credit score. However, if you find that you're not able to make payments on time or miss any payments, this will likely impact your credit score and could make it harder to borrow money when you need it.
That’s why the Vanquis Credit Builder Credit Card is often a suitable option. If you are accepted for a credit builder credit card, remember that the interest rate on borrowing might be higher and the card’s credit limit might be lower.
Credit cards if you’re on benefits
Although it’s often more difficult, it is still possible to get a credit card if you’re unemployed, or only have government-assisted income. However, if you are eligible, you could be likely to face higher interest rates and low credit limits.
Most lenders in the UK are regulated by Financial Conduct Authority (FCA). FCA regulations govern firms to lend responsibly, meaning they’re less likely to lend to those they believe are unlikely to make the repayments. Lenders following these guidelines may not lend to those on benefits because of the risk of putting them in unmanageable debt.
However, you do still have options. Even if you are on benefits, many lenders will review your application and your credit file and may still consider you for certain cards.
Can I get a credit card if I'm on benefits?
Being on benefits can make it more difficult to get credit. Even if your benefits give you a steady income, lenders might still consider you a high-risk borrower if you aren’t in regular employment. This means that those on benefits may need to be more careful about making any applications for a credit card.Vanquis offers a Credit Building Credit Card, which you are able to apply for even if you’re on benefits. You can use our simple credit card Eligibility Checker to check online in just 60 seconds. You’ll get an instant decision on your eligibility, with no hard search left on your credit file unless you continue with your full application.
Rebuilding your credit history
If you rely on government assistance or benefits or have previously struggled to get your credit under control, it can be challenging to know where to start when it comes to repairing your credit score.
However, you may be eligible for the Vanquis Credit Builder Credit Card. This could help you repair your credit score by starting you off with a lower credit limit and higher interest rate, which could be improved over time with responsible use (not missing payments or going over your credit limit).
You can also access our money-saving app, Snoop. This is a money management platform that lets you see all your accounts in one place, set budgets and track your spending, helping to assist you in managing your money and paying your debts off over time.
FAQs
What is the minimum salary/income for a credit card?There is no standardised minimum salary in the credit card market. Each lender has their own set of internal criteria they use to deem whether prospective cardholders are eligible for their cards.
However, depending on the criteria of a specific lender, it is still possible to get a card in low-income situations.
Many banks will have their own terms and conditions that outline how much income is needed to grant loans, so you may have to try an eligibility checker to find out if you’re likely to be approved.
Vanquis use soft credit checks that do not affect your credit rating, letting you know the likelihood of being accepted before committing to an application.
How do I get a credit card without proof of income?
You will usually need to prove your income to obtain a credit card. However, income isn’t related to just your salary.
Things like pension income, benefits you receive and income from family or a partner could be considered, so not having an income from an employer doesn’t necessarily mean you cannot access credit.
However, with most lenders you will likely need to prove there is some kind of income coming into your bank account, otherwise you’re unlikely to qualify for credit cards and other loans.
Can I get a credit card if I'm retired?
Yes, it is possible to get a credit card if you’re retired, as long as the lender trusts that there is enough coming into your bank account from other sources, like your pension or other income, to pay off what you borrow.
What eligibility criteria is there for a low-income credit card?
The eligibility criteria for a low-income credit card are most often the same as any other credit card. However, whether you’re approved is ultimately at the discretion of the bank or credit provider.
You may be eligible to apply for a Vanquis Credit Card if you:
- Are over 18
- Live in the UK
- Do not already have an Aquis, Chrome, Origin, Vanquis, Thimbl or Granite Credit Card
- Are not currently bankrupt or have an active Individual Voluntary Agreement (IVA)
