Compare our best low income credit cards
Credit cards for people with a low income or who are unemployed
Check eligibility and compare low income credit cards
What is a low income credit card?
Low-income credit cards are designed for individuals with limited or no income.
While many standard credit cards require a minimum annual income of around £10,000 or more, low-income credit cards cater specifically to those with less earning power.
Some of these cards have much lower income requirements, with some asking for as little as £3,000 annually.
These credit cards let people making less money benefit from the extra protection available on credit cards and help them improve their credit scores.
Can you get a credit card if you’re unemployed or have no income?
Put simply - yes. Credit card providers understand that while income is important, it's far from the only thing that matters when choosing who they’ll offer a card to.
What’s more, they understand circumstances change, and just because you're unemployed now, it doesn't follow that you always will be.
On top of that, not having a job doesn't mean you have no income at all. What counts as acceptable income varies from card provider to card provider.
As well as wages, different credit card providers count some or all of the following towards income on a credit card application:
Pension income
Personal independence payment (or Disability Living Allowance)
Savings interest
Rental income
Spousal maintenance
Child maintenance
Some universal credit payments
How to get a credit card with a low income
Finding the best low income credit card will depend on your personal circumstances and how low your earnings are. When deciding whether to offer you a credit card, lenders will also look at your credit rating and age. You need to be at least 18 to apply for most cards while for some it’s 21.
Use an eligibility tool
An eligibility tool lets you determine which cards you’re most likely to be accepted for.
And because they use a “soft search” credit check, you can use it as many times as you want without affecting your credit score.
Compare low income credit cards
Once you get your results, you’ll ideally want a card that offers the lowest interest rate for the highest credit limit you can get, but prioritise what’s important to you based on your needs. The results are based on your likelihood of approval, so you can be confident about getting the card you pick.
Fill out an application
Applying online is often the easiest way, but you may be able to apply by phone or by visiting a branch. All you have to do is provide your name, contact details and financial information. After that, it can take up to a week or more to hear back about whether you've been accepted, although some online applications offer instant decisions.
Pros and cons of getting a credit card with low income
Pros
Cons
Expert tips for low income credit card applications
There are plenty of steps you can take to boost your chances of being accepted for a credit card that are not related to your earnings.
Importantly, if you're trying to get the best credit card, it’s vital to avoid applying with lots of providers.
That's because lenders can see how many applications you've made, and a lot of applications in a short space of time is a red flag for many providers.
For this reason, it’s best to check the eligibility criteria before applying to see whether your chosen card specifies a minimum income amount.
If you don't think your application will be accepted based on the eligibility criteria, don't apply as it could harm your credit record if you then have to apply for another card.
The good news is that many online tools let you check to see which cards you're most likely to be accepted for before you submit a formal application - and using them is something lenders won't be able to see.
When you apply, there are several factors that a lender will consider as well as income. Your card provider will check your credit record for the following:
Existing debt: Your application could be rejected if your debts are more than a certain percentage of your income.
Unused overdraft or credit limits: This may put providers off because you could use this credit to get into more debt.
Several credit applications at once: This may cause providers to think you are desperate to borrow.
Poor financial history: This could be a missed credit card payment, using an unauthorised overdraft or taking out a payday loan.
No credit history: This shows a provider that you have no experience of managing credit or debt and can reduce your chance of acceptance.
Joint bank account, mortgage or loan: This creates a financial link to another person, which means if they have debt problems, it could affect your own credit rating.
You should always check your credit record before you apply for a credit card.
Check eligibility and compare low income credit cards
What determines my eligibility for a credit card?
There are a number of factors that lenders will consider when deciding whether to offer you a credit card. These include:
Your age: To qualify for a credit card, you will usually need to be at least 18 years old
Credit rating: Lenders will look at your credit record to determine how likely you are to repay your debt, how much they are willing to let you borrow and what rate of interest you will be charged
Financial history: Any recent history of bankruptcy or County Court Judgements will reduce your chances of getting a credit card
Income: Lenders may have minimum income requirements that you will need to meet to be eligible
Other options for borrowing with a low income
Credit cards are only one way to borrow money if you have a low income or are unemployed. Other products may be more appropriate depending on how much you need to borrow and the provider’s eligibility requirements. Here are some alternatives:
Guarantor loans
Guarantor loans are personal loans where you get a close friend or family member to act as a guarantor, agreeing to meet the loan repayments if you’re unable to.
Whoever agrees to be the guarantor should be aware of what they’re signing up for.
Being a guarantor is a major commitment, and they'll need a good credit score and, ideally, be a homeowner.
Credit union loans
Credit unions offer savings and loans to specific groups, for example, people in a particular area or profession.
These loans are often significantly cheaper than ones from short-term lenders. If there's a credit union in your area, they could be a good option.
To borrow from a credit union, you may have to become a member. Some require you to start saving with them first.
Ask your bank about an overdraft
Overdrafts are far from the cheapest way to borrow, but can also be one of the quickest ways to get a line of credit extended to you.
Simply ask your bank if it can either give you an overdraft facility on your account or extend your current one. As with a credit card, you can repay as much as you choose, and interest is charged daily. This means they can be a good solution if you only need the extra cash for a day or two.
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