Finding credit cards for low income earners is not an easy thing to do. One of the first things that banks will look at is your ability to pay your debt. If your income is low, they’ll assume that you won’t be able to pay for your basic needs and other expenses.
With the federal minimum wage stuck at $7.25 an hour, many workers will struggle with making enough to satisfy the requirements to get a credit card.
Some banks recognize that not everyone makes enough in today’s society, so they offer certain credit cards for people with low incomes.
Keep reading to find out what the top 7 cards are and how you can get approved.
Top 7 Credit Cards for Low Income
These credit card offerings show that it’s possible to get a great credit card with perks while having a low income. Check out these top credit cards you can get if you have a low income.
The Chase Freedom is a great starter card for students who are just starting to build their credit. They’re also great for adults with low income. You can get approved even if your income is about $25,000 a year.
The best part about this card is that it offers cash back perks, and it doesn’t have an annual fee.
Capital One Platinum
Capital One has a number of credit cards for low income earners on this list. Starting with their Capital One Platinum card, this card offers flexibility and opportunity for people with low income.
You’re likely to start with a low credit limit and when you pay your first 5 monthly payments on time, you’ll be eligible for a credit increase.
The Capital One Platinum also offers online access, fraud protection, and there’s no annual fee.
Wells Fargo Cash Wise Visa Card
If you have a high credit score but low income, this card is a good option for you. Wells Fargo offers this card with zero annual fees and a ton of perks.
First of all, your first 12 months of purchases and balance transfers have 0% interest. You can earn at least 1.5% cash back on purchases.
One other nice perk is that if you use this card to pay your mobile phone bill, you get up to $600 of protection for your phone if it’s stolen or damaged.
Discover It Cash Back
The Discover It Cash Back card makes it easy to get a credit card with low income. Your income needs to be around $15,000 a year. If you’re a student, Discover will cut you a break.
There’s no annual fee and you get 5% cash back for making purchases in certain categories. Otherwise, you’re still able to get 1% back.
Secured Credit Cards
A secured credit card is a great way to rebuild or build your credit. Secured credit cards do usually require a deposit, which can be a barrier for low income earners.
If you can meet the deposit requirements, you have a card that functions like a credit card and a debit card. Your deposit serves as the credit limit on your account. You make a few charges on the card and pay the balance at the end of each month.
When you show that you have paid your bill on time for several months, you have a good chance of getting an unsecured card.
Capital One Secured Master Card
This is a great card if you need to rebuild your credit and you have low income. With this card, you get account alerts, great customer service, and it’s easy to use. There’s no annual fee on top of all of these benefits.
Open Sky Secured Visa
The nice thing about the Open Sky Secured Visa is that it doesn’t have a credit check to be approved. You’ll still need to show that you have income, but the approval rates are still very high.
The only drawback to this card compared to the others is that there’s a $39 annual fee. This is a good option if you have bad credit and low income.
Discover it Secured
The Discover it Secured credit card offers a number of benefits for a secured card. You can earn 2% on the first $1000 in purchases at gas stations and restaurants.
You’ll start with a $200 deposit and after 8 months, you may be able to get your deposit back. That will give you the incentive to keep a perfect track record with your card.
How Low Income Earners Apply for Credit Cards
Now that you know what the credit cards are to go after, where do you start? Start by looking at two things. The rewards and the annual fees.
Check Your Credit Score
The big difference in the types of cards you’ll qualify for is your credit score. You’ll want to check that before you apply. If your credit score is low, go with a secured credit card.
Be Honest on the Application
It may be tempting to exaggerate your income on your application. Just be honest. Assume that credit card companies will find out anyway or ask for written proof of your income.
Get a Co-Signer
If you think that you’re not going to be able to qualify for a credit card, get a co-signer. A co-signer can help you get approved for a card because they’re taking the responsibility of your payments should you miss your payments.
Getting Credit Cards for Low Income Earners
Having a low income doesn’t mean that you are automatically excluded from getting a credit card.
Finding the best credit cards for low income earners is easy. When you get approved for your credit card, you now have an added financial tool that you can use to manage your cash flow and emergencies.
The cards presented here give you plenty of options to find the credit card suited to your needs.
Want to know more about the best credit cards out there? Check out these articles to learn more.