It is not a secret that it is pretty hard to get a credit card for people with low income. Even though the minimum wage is 7.25$ still some workers are having troubles fitting the requirements provided by the bank to get the credit card. The first thing that a bank admits when reviewing your application for the credit card is your income. If it is too low the bank will refuse to issue the card. However, some banks understand that not all people have high income nowadays. That is why they provide special cards for low-income earners.
In this article, you will find out about the best credit cards for people with low income and how to get them.
7 most affordable credit cards for people with low income
- Chase Freedom
This card is perfect for both youngsters who only start to get on with credits and workers who are not highly paid. Even people who have 25000$ annual income are able to get this card. The main benefits of the chase freedom are cash back and the absence of an annual fee.
- Capital One Platinum
If you are looking for credit cards for people with low income, then you have to admit Capital One because they provide a huge variety of affordable credit cards. Especially pay attention to Capital One Platinum as it is beneficial for low-income earners in such aspects as fraud protection and lack of an annual fee. You can also access the card online. Although, it is important to mention that after the card activation you have to start with a low credit limit and only after 5 months of regular payments you will be able to enhance a credit.
- Wells Fargo Cash Wise Visa Card
This option is ideal if your credit rating is on the high level. The card comes with a lot of bonuses and of course, you don’t have to pay an annual fee. Besides, you can shop and transfer money without paying interest in the first 12 months. It also has other perks such as 1.5% cash back on purchases and refund of up to $600 in case of your phone gets stolen or damaged.
- Discover It Cash Back
If your income is only $15,000 a year or you are a student then this credit card is for you. It gives you a unique offer of 5% cash back in special shops. From all other purchases, you will receive 1% cash back.
Secured Credit Cards for people with low income
A secured card simply means that the card is backed by a cash deposit that you must supply beforehand. For one thing, this can be a problem for people with low income, but anyway it is a great way to get on with credit cards because you know that you are secured. Generally, when you initiate a secured card, the amount of deposit is your credit limit. It is possible to increase credit limit while adding additional funds on the balance. However, it is obligatory to pay the entire balance by the end of each month. If you demonstrate a good payment history the bank can issue you an unsecured credit card.
- Capital One Secured Master Card
Aside from usual features such as lack of annual fee and online access this credit card provides account notifications and friendly support service. Great choiсe if you prefer secured credit cards.
- Open Sky Secured Visa
If your credit rating is not very high then this card is for you. The thing is that banks don’t check your credit rating while reviewing your application for this credit card. Still, you need to disclose your annual income while applying for this credit card. The bad thing is that the annual payment for the card service is $39.
- Discover it Secured
The first deposit on this card has to be minimum 200$. After 8 months of usage you will be able to get the money deposited back. Main benefits of these credit cards for people with low income, are the absence of annual fee and 2% of cash returns from purchases made in restaurants and gas stations.
How to improve your chances to get the credit card?
Here are some tips, which are really important to follow for people with low income to get the best credit card.
Watch your credit rating
It is necessary to keep your credit score on the high level so don’t forget to check it before sending the application. Otherwise, if your credit rating is too low try to apply for the secured credit card.
Do not tell lies on the application
If the bank will discover that you lied on the application the consequences can be really serious and lead to a criminal penalty. That is why it is better, to be honest, and not lie about your annual income.
Hire a guarantor to improve your chances
It is always a good decision to get a guarantor if you are not 100% sure that your application will be approved. The guarantor can take commitments of your payments so you can convince the bank that in case something happens you are backed up.
Now you understand that even people with low income are eligible for credit cards. There is a variety of cards which can be issued for people with low income which we mentioned before.
How can I get a credit card with low income?
You will need to apply to organizations that provide special cards for low-income earners. When considering the application for a low-income credit card your credit rating will be taken into account.
What is the easiest low-income credit card to get?
Capital One Platinum card as it is beneficial for low-income earners in such aspects as fraud protection and lack of an annual fee. Also, you just need to have a medium credit score.
What is the minimum income required to receive low-income credit cards?
Various banks require from $ 15,000 to $ 25,000 per year. A credit rating also affects the decision to receive a card for low-income.
Can I get a credit card for low income with a bad credit score?
Yes, but you will get a small credit limit for 6 months. Subject to timely payments within 6 months, you can increase the credit limit for low-income credit card.