Low Income Credit Cards
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In the modern world we live in Credit cards are no longer just a form of borrowing money or getting credit, but a necessary currency. You need credit cards to purchase online, to travel and it is very difficult to function in this modern world we live in without a credit card. This often leaves low income earners feeling despondent, thinking that they will not be accepted for a credit card. With the various Low Income Credit Cards available, however, this is no longer an issue.
Low Income Credit Cards Comparison
Many people in low income entry level positions erroneously think they have no hope of obtaining a credit card. These Low Income Credit Cards come with reasonable fees and interest rates, with some of them containing a balance transfer option. For those that do not want to get a credit card as they feel debt is bad, it is important to realise that getting a good credit record is becoming ever increasingly more important for future large purchases like home loans and vehicle finance. Getting a credit card is the perfect first step to establishing a credit history.
Frequently asked Questions about Low Income Credit Cards
- Is there a minimum income requirement?
Yes, all credit cards have a minimum income requirement. Usually, the feature of the Low Income Credit Cards is that the minimum criteria are not as strict. Many of these cards boast about a 60 second approval time which means that there are not a whole lot of prerequisites to be filled. The average minimum income per year is for these credits cards is usually about $15 000 a year.
- What can I do if I do not earn enough money?
For those who do not earn the minimum amount income per year, there may be a few things that are being overlooked. Firstly, banks will accept a spouse or partner’s income and will add it to your income as a household earning. If this option is not available at the very least, make sure you have a transactional bank account and maybe get some overtime or extra shifts at work for a few months to meet the monthly average of the required income. No matter what you think the answer will be, it does not hurt to apply for the credit card and let the financial institution inform you of any other requirements.
- What important factors bear consideration when choosing the right credit card?
As this card is possibly the first ever credit card that you will own, be sure to look at your own affordability first. Do not over extend yourself by getting a large credit balance, as this will negatively affect you credit score should you not meet your obligations. Also, consider the fees and other finer details as they can make a big difference to the total cost of a credit card.
- What should I remember when applying for my Low income credit card?
Application is very simple and can be quickly done over the phone, over the internet or at a branch. There are some things that you can do to increase your chances of getting approval, these include being thorough and accurate when filling in the required information. Making sure that your income to debt ratio is as low as possible, if at all possible, by earning more money. Remember, however, that the banks want to give you a credit card, and they will be as accommodating as they possibly can be to facilitate that happening.
A Low Income Credit Card may be just what you need if you are just starting out in the working world or are just working part time. The most important aspects are to try and get the deal that meets your specific needs best, and to use the opportunity the card affords you to increase your credit score.
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