Not every person has a regular income. This is exactly what most credit cards require. But there are good alternatives, such as using a partner card or – better – a prepaid credit card. http://www.athenasite.net/best-payday-loan-consolidation-where-and-how-to-consolidate-payday-loans/ for further explanation
Why is a fixed salary necessary?
Classic credit cards have a credit limit. As a rule, expenses are collected over the month and then debited. Depending on the credit card, the consumer has to transfer the amount himself. However, the principle remains the same: the bank grants the customer a loan.
This means that the bank is taking a certain risk. If the customer cannot pay for his purchases, the bank may remain at his own expense. In addition, private bankruptcy threatens consumers if they go into excessive debt. To protect themselves and their customers, banks follow strict spending guidelines. Consumers also benefit from these requirements.
A stable income is an important award criterion. A classic credit card is usually rejected if the applicant has an irregular salary. This is annoying for consumers who work seasonally or make a living from their savings. Housewives or students who For example, receiving money from their parents are also excluded. They could easily manage the credit line.
Classic credit card: income required
The exact salary is requested before the card is issued. Anyone applying for a classic credit card has to answer this question. Unfortunately there is no way around it. The bank requires monthly income or annual salary. In addition, she would like to know the professional status, i.e. whether the applicant works as an employee or as a self-employed person.
Info: Often there is no proof of income. Nevertheless, the consumer should provide truthful information. If the bank detects fraud, it can terminate the business relationship immediately.
In contrast, the creditworthiness is strictly checked. To do this, the bank turns to a credit agency like Credit Bureau, and if negative characteristics are stored there, there is a risk of the credit card being rejected. Therefore, consumers should polish their Credit Bureau before applying for the card. For this you can request free data access according to Art. 15 GDPR. Wrong entries will be deleted immediately upon request. If open bills are noted in the Credit Bureau, this is another reason for rejection.
Creditworthiness is an important point. If a bank sees the lack of income less strictly, a negative Credit Bureau entry would be the knockout criterion. Normally, consumers without an income do not receive a “real” credit card.
Way out via a partner card
Fortunately, there are two solutions. The first way out is a second or third card. The applicant must find someone who already has a credit card or who meets the requirements. This can be the parents, the partner or close friends.
The close person assumes full responsibility. She keeps the main card account. The consumer without a fixed salary receives a second card. He can use it in accordance with the agreement with the account holder. This requires a strong relationship of trust. The bank does not check the second card holder, as the risk lies entirely with the creditworthy person.
In this variant, billing is carried out via the main account. If the consumer without income does not pay his bills, the main account holder is asked to pay.
Prepaid credit card as the best alternative
Since there is no fixed income with which the credit card debt can be paid, a partner card is too risky for many people. Defaults can jeopardize good relationships. Therefore, a prepaid credit card is the best solution.
Info: Prepaid credit cards follow the same principle as prepaid mobile phone tariffs. The consumer can make calls until his money is used up. Credit cards work on a credit basis.
The bank does not take any risks with a prepaid credit card. The consumer cannot get into debt because he has to top up his credit beforehand. This is why this card model is issued without proof of salary. Banks also issue prepaid credit cards to the unemployed, students or housewives.
As with any other credit card, a provider comparison is recommended. The individual prepaid credit cards differ in their terms. Generally, a plastic card with no annual fee is preferable. The applicant should also check the fees abroad. The costs for cash disposals and the foreign currency fee are to be taken into account.
Conclusion: partner card or prepaid credit card
There are two sensible solutions without a fixed income. Anyone who knows a creditworthy person with income can offer them a second or third card. Here, however, there must be a close relationship of trust. Applying for a prepaid credit card is much easier. No income is required for this card variant. Therefore, it is the best solution for people without a fixed salary.