No Salary Slip? Here’ s How You Can Still Get A Credit Card

Having your own credit card was once a distant dream if you were not a salaried individual. If you did not have a fixed salary slip or proof of income, you probably did not stand a chance at getting approved. Things, however, are beginning to look different these days.

Students, freelancers, homemakers, retirees, and gig workers don’t have a regular monthly salary that comes in the form of a salary slip. However, that doesn’t mean they don’t lead financially responsible lives and have constant flows of cash coming in. Banks and lenders are starting to recognize this trend and are offering financial solutions such as secured credit cards, add-on cards, student credit cards, to name a few.

Knowing what these cards are and what lenders expect besides salary can help one understand credit better and build a healthy credit history. Furthermore, one can learn how to use credit wisely.

Let’s go through each option and steps you should take to avail credit cards without a regular income!

Secured Credit Card

If you don’t have a job (with the exception of freelancers and those having alternate sources of income that are not salary), then you should apply for a secured credit card. To apply for a secured credit card, pledge money as collateral. You offer the bank this amount as a security deposit against your credit card. If you fail to repay, the bank will adjust the outstanding amount against your security deposit.

Get An Add-on Card

Let your partner or parents apply for an add-on card on your name. Both the main applicant as well as the add-on cardholder enjoy the same credit limit. The main cardholder will have to provide ID and address proof while he/she is required to pay the credit card bill.

Pledge Your Fixed Deposit

Use your existing fixed deposits (FDs) to get approved for a credit card. You can get credit cards against FDs with credit limits of up to 90 per cent of your FD. The best part is that your FD will keep accumulating interest and in case you don’t pay your bills on time, the bank will deduct the amount due from your FD balance.

Student Credit Card

As the name suggests, students studying in college are eligible to apply for credit cards offered by many banks. There are several banks which offer student credit cards. To apply for these cards, students must have a trust fund or financial assets/investments. 

Some banks also like to issue student credit cards to students who already have an account with them and have maintained the minimum required balance. This gives them confidence about the student’s repayment ability. Research the various student credit card offerings by multiple banks and apply for the one which you think is the best fit for you.

Build Your Creditworthiness Even Without Income Proof

Below are certain things you can do to improve your creditworthiness even if you do not have an income proof. Having a good credit profile increases your chances of being approved for credit cards (and other credit products) in the future.

* Have A Bank Account: Just by having a bank account you can prove you’re financially stable enough to own a credit card. Not only does having a bank account serve as proof of your residence, but in case you default on your payments, it also serves as a reference point for the credit card issuer.

* Declare Your Income: If you happen to receive money as part of your freelance job or through other untraditional methods, make sure you declare all your sources of income. This will help your credit score and you’ll have a better chance at getting approved for a credit card without proof of income.

Credit card issuers also look at your repayment history of your past regular bills such as rent payments, utility bills, phone bills to determine if you’re financially trustworthy. Make sure you keep records of all these documents updated and prove you have a history of making timely payments.

* Make Payments On Time: Making payments on time when you have debts is extremely important. Here’ s why. Your payment history makes up for most of your credit score. Your credit score is what banks look at to determine if you’re creditworthy. By making your payments before the due date, you are responsible and less risky to lend to, which will improve your credit score.

The bank also wants to ensure that you’ll be able to repay your credit card in the future. If you make timely payments, they assume you’ll do the same in the future. You stand a better chance of getting your credit card approved if you pay your dues on time.

The more responsibly you use your credit card and pay it off on time, the higher your credit limit will be when you are approved for a card.

Late payments can hurt your credit report deeply. Not only will your credit score decrease but you’ll find it hard to be approved for credit cards (or other loan products) in the future.

FAQs

1. Is it possible to apply for credit card without salary slip?
Yes. You can apply for secured credit cards or student credit cards or credit cards against fixed deposit if you are a salaried customer but not getting salary slip every month.

2. What is a secured credit card?
Secured credit cards are offered against a collateral such as fixed deposit account or security deposit. So, if a card holder misses to pay their dues, then banks will deduct the money from the fixed deposit account which is pledged against the credit card.

3. What can I do to increase my chances of approval?
If you have a good payment history, report all income sources, maintain healthy bank account balance and pay your bills on time, you can increase your chances of approval.