Credit Cards for People on Low Income

 

Check Eligibility

 

If you’re on a low income, you may find it difficult to get accepted for credit – even if you have a good credit score. Some lenders may feel that you’ll not be able to adequately manage your debt, purely because your annual earnings are low.

 

At Vanquis, we consider a range of circumstances, including low income and bad credit, meaning you may still be eligible for a Vanquis credit card.

 

What is a credit card for people on low income?

Although having a low income doesn’t directly affect your credit score, your annual earnings are taken into account during your application and will be part of the overall criteria lenders use to decide whether to lend to you.

 

There are any number of reasons you could be on a low income, from a change in personal circumstances to setting up your own business. However, some lenders may see you as a higher risk borrower who may not have enough financial security to take on debt.

 

At Vanquis, we consider all kinds of applicants, including those with low income or bad credit, as well as those who are self-employed or unemployed. Before applying for credit with us though, we recommend running an eligibility check to ensure that this option is suitable for your circumstances.

 

Although this initial decision isn’t a guarantee that we’ll lend to you, it’ll let you know if you can proceed with the application. And we’ll always run a full credit check before making our final decision to lend.

 

Can I get a credit card if I have a low income and bad credit?

If you’re on a low income and have bad credit, lenders will see you as a high risk, which means they feel there’s a greater chance that you won’t be able to keep up with the repayments on your card. This could be because you don’t have the income needed to pay down debt or because the information on your credit file suggests that you haven’t handled credit well in the past.

 

If your application is accepted, your card will have a relatively high interest rate. This is because lenders charge a higher rate to account for the added risk to lending to people who are considered a higher risk. At Vanquis, we charge a representative APR of 39.9%, but the rate you’re offered may be higher, depending on your individual circumstances.

 

Credit cards for the unemployed

If you’re unemployed, you may be considered a higher risk to lenders as you don’t have a steady income with which to repay any money you borrow. In this situation, a credit card for people with poor credit might be an option.

 

If you’ve fallen into financial difficulty as a result of being unemployed, this may have adversely affected your credit rating, which will make getting credit even more difficult, even if you’re looking for a credit card designed for people on low income and poor credit.

 

Credit cards for the self-employed people

Being self-employed can also affect your ability to get credit. Even if your business is thriving, lenders might still see you as a higher risk borrower because you don’t have a steady flow of income or might struggle to keep up with repayments if there’s a downturn in trade.

 

Again, you might find that a credit card designed for people with poor credit offers your best chance of acceptance in this instance, although this will depend upon the information held on your credit file and your current circumstances.

 

Credit cards if you're on benefits

Some credit card providers don’t specify a minimum income for credit card applications in their terms and conditions, but it’s unusual to find a credit card with no income requirement.

 

As a minimum, most lenders will check that you’re able to afford repayments as part of the application process, but even if you don’t have a regular wage, benefit payments including Disability Living Allowance (DLA) and Personal Independence Payment (PIP) might be considered.

 

Some credit card providers don’t specify a minimum income for credit card applications in their terms and conditions, but it’s unusual to find a credit card with no income requirement.

 

How to apply for a credit card if I have a low income?

To apply for a Vanquis credit card, you’ll first need to run an online eligibility check, which will give you an initial decision without leaving any record of an application on your credit file.

 

This initial decision isn’t a guarantee that we’ll lend to you, and we’ll run a full credit check before making a final decision. If you continue to the full application, one of our team will give you a call on the number you provided to confirm your details and to answer any additional questions.

 

Once this has been completed, we’ll only get in touch via phone or post if there is a problem with your application.

 

Low income credit cards FAQs

If you’re searching for low income credit cards in the UK, here are the answers to some of the most frequently asked questions.

 

Can applying for a credit card affect my credit score?

 

Yes. All applications for credit are recorded on your credit file and will affect your credit score, and multiple applications in a short space of time can have a negative effect on your score.

 

Using our eligibility checker will give you an initial decision, which won’t leave any trace on your credit file, meaning your credit score won’t be affected. But if you continue to our full application, we will run a full credit check, which may impact your score.

 

Even if your application is successful, you might see an initial dip in your score, but this could improve if you use your card correctly by staying within your credit limit and keeping up with repayments.

 

How quickly can I complete an application?

Our online application can be completed in a matter of minutes, and you’ll be given an initial decision to let you know if you can proceed to the full application. If this is the case, we need to take a few more details and will give you a follow up call to confirm your details and run a full credit check within 15 minutes of this part being completed.

 

How quickly can I receive my credit card?

It usually takes between 10 and 14 days from when you complete your application, but it might take longer if we need to contact you for more information.

 

If you’re a low earner looking for a credit card, see if you are eligible for a Vanquis credit card by using our credit card eligibility checker.