Credit cards for people in low-income groups
There might be lots of reasons you’re in the low-income group: you could be unemployed, you might have just started a business, or perhaps you took a break from work. If your income is low, it will be difficult to get accepted for credit. That’s because without money coming in regularly, most credit card providers will see you as a high-risk borrower. This can lower your chances of getting approved for credit, or it can even mean your application for a credit card is rejected.
Select the group for your situation:
If you’re unemployed, you probably have no regular income to pay back any money you borrow. Because of this, lenders could see you as a higher risk, and they might be more reluctant to lend money to you. Therefore, it’s more difficult to get credit cards if you're unemployed.
Can I get a credit card if I'm unemployed?
The honest answer is, most likely. Although there’s no such thing as a credit card specially for the unemployed, a credit builder credit card might offer a chance for you to get a credit card if you’re out of work. Being accepted for this type of card isn’t guaranteed, and your lender will assess your current situation before they decide.
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 very challenging. You should consider:
- 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 you miss any payments, this will impact your score and could make it harder to borrow money when you need it.
- That’s why credit building credit cards are often the most suitable ones for unemployed people. If you are accepted for a credit building credit card, don’t forget that the interest rate on borrowing might be high and the card’s credit limit might be low.
If you’re self-employed, lenders may see you as a higher risk because your income depends on how well your business is doing. A quiet period with no trade could mean that your income drops, and you can’t keep up with repayments on your borrowing.
Can I get a credit card if I'm self-employed and have bad credit?
Having bad credit can limit your credit card options. If you’re also self-employed, your options might be even more limited. If this is the case, a credit building credit card could be a very good option because the lending criteria isn’t as strict as it is 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 self-employed and need a credit card
- When you’re self-employed, it’s likely that your income will go up and down from time to time.
- Because of this, it's important to make sure that you can always pay your credit card bills each month.
- By meeting each payment on time and staying within your credit limit, you might be able to improve your credit score.
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 higher risk borrower if you aren’t in regular employment. This means that when you’re on benefits, you need to think carefully about making any applications for a credit card.
With Vanquis, we have credit cards you can apply for 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 trace of a search left on your credit file.
Can I get a credit card if I'm on benefits?
Being on benefits can be very challenging, and it can make it much harder for you to get credit. Try not to worry though, because receiving benefits doesn’t necessarily mean you can’t get a credit card.
With Vanquis, we have special credit cards you can apply for 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 trace of a search left on your credit file.
- If you’re looking for a credit card while on benefits, many lenders will look at your credit file and consider whether you can afford to pay back what you borrow on the card.
- This means your application might be accepted if you can show that you can afford the repayments, even if you’re on benefits.