Nowadays, credit cards are no longer limited to working people. Banking and financial services are developing rapidly in India. Now students, housewives, freelancers and small business owners can also get credit cards without salary slips or proof of income. They just need to follow the right steps.
Credit Card Instead of Fixed Deposit (FD)
If you do not have any documented information of regular income, then getting a credit card instead of a fixed deposit (FD) is considered the safest and easiest option. Banks like HDFC, ICICI, SBI and IDFC First issue secured credit cards instead of fixed deposits. For this, you need to make a fixed deposit of Rs 10,000 or Rs 15,000. In return, the bank grants a credit limit of up to 75 percent or 90 percent of the total amount of that deposit. This type of card not only helps you make digital payments but also helps you build your credit score by making timely payments.
Add-on Card to Family Card
If someone in your family already has a credit card, you can apply for an add-on card to their card. No separate proof of income is required. Spouses, parents or children can enjoy this benefit. However, spending on the add-on card is the primary responsibility of the cardholder, so it is important to spend wisely.
Special credit cards for students
Many banks and financial institutions now offer special credit cards for college and university students. These cards do not require a salary slip. Although they have a low credit limit, they are very useful for online shopping, travel bookings, and emergency expenses. They also help students learn the discipline of financial transactions at a young age.
If you don’t have access to a paycheck, you could still qualify for a credit card using your bank statement as evidence of your ongoing earning ability. A bank will generally accept a summary of your last six months of bank statements, instead of requiring you to provide an income statement.
Applying for a Credit Card When You Are Unemployed
If you feel you will not meet the minimum income level to qualify for a card on your own, you may still apply using a co-signer or guarantor. A co-signer/guarantor with a steady income and good credit history will be ana advantage in most cases, increasing your chances of receiving approval. Although you can successfully apply for a credit card without documentation of income, being responsible with your credit card use by paying on time, keeping within your spending limits and avoiding unnecessary EMI payments will build a solid basis for your future finances.