Getting a Credit Card Without a Credit History or Income

Obtaining a credit card without a credit history or income can be challenging. However, there are several strategies and options available to make the process easier. Here are some of the best options:

Secured Credit Cards

A secured credit card requires a security deposit, which serves as collateral for the credit limit. This reduces the lender's risk and makes it easier to obtain the card. IDFC First Bank offers this facility, allowing you to draw a limit equal to the amount of the fixed deposit.

Add-on Credit Cards

If you have a family member or friend with a credit card, they may be able to add you as an authorized user on their account. This can help you build credit without having to qualify on your own. The benefits of such an arrangement include getting access to a credit line while contributing positively to their credit history.

Student Credit Cards

For students without a credit history, student credit cards are an excellent option. Some banks offer credit cards specifically designed for students. These cards often come with lower interest rates and no credit history requirement. However, it is important to read the terms and conditions carefully to ensure you understand the fees and interest rates.

Small Business Credit Cards

If you run a small business, you may be able to qualify for a business credit card without the need for personal income verification. Business credit cards can be useful for managing business expenses and improving your credit score over time. Some businesses even allow you to use business cards for personal expenses, so it's worth checking with your bank to see what options are available.

Why Secured Credit Cards are the Best Option:

The best option to get a credit card without an income document is a credit card against a fixed deposit. Initially, you need to start a fixed deposit in the bank. After that, you can apply for a credit card against this fixed deposit. The credit limit of the credit card will be calculated according to the amount deposited in the fixed deposit (FD).

Income Verification: What Credit Card Companies Require?

Most credit card companies ask for your annual income, wages, and investment income as part of the application process. However, they do not necessarily require supporting documentation. They will conduct a credit check and review your credit report and current credit score.

What If You Don't Have Income Proof?

Without income proof or evidence of paying back capacity, it would be difficult to get a credit card directly. Here are a couple of alternative options:

Family Support: If someone from your family is willing to extend their credit card for you, you can become an authorized user. This way, you can get a supplementary or add-on card in your name while paying them back for any expenses incurred on the card. Fixed Deposit and Prepaid Credit Card: Open a fixed deposit account with the funds you can manage and then apply for a prepaid credit card whose limit will be close to the amount of the deposit. This can serve as a more straightforward way to establish credit while building your credit history gradually.

By exploring these options, you can increase your chances of getting a credit card without a credit history or income proof.