Credit Card Options For Unemployed People

Credit Card Options For Unemployed People

Posted on January 9, 2012 by Amy in Credit Card Tips

Paying for everything when you are out of a job can be a struggle with or without a credit card.

The advantage to having a credit card is that it gives you more flexibility while living off savings or welfare checks, taking away some of the stress while you search for a job.

But before applying for any credit card it is important to consider whether you actually need a credit card right away. While they may ease immediate financial hardships, using credit with no way of paying it off can quickly lead to serious card debt and even more problems that will not go away as soon as you have your next job.

Some lenders will also be reluctant to sign you up for a card when you are unemployed regardless of your credit score, so getting a new card when you are between jobs should be considered carefully before any further steps are taken.

But if you do decide a credit card will be more help than hindrance when you are unemployed, then there are a few options you can consider.

Low Interest Credit Cards

A low interest credit card is the perfect option for people out of work because they give you access to funds with the best possible rate of interest and reduce the chances of serious card debt.

Unfortunately most low rate credit cards require a good credit history and stable income but lenders can still issue cards at their own discretion so it may be worthwhile talking to your bank or calling a few issuers to see what options are available.

Credit Cards For Bad Credit

There are a number of cards designed specifically for people with bad credit but they can also help people who are unemployed.

Regardless of your credit history, it is hard to get approved for any card without a regular income but cards like the Capital One Cash Rewards For Newcomers

Secured Credit Cards

Secured credit cards are a great option for people who do not have regular income because they have a much easier approval process.

Issuers like Chase, Citibank and Orchard Bank all offer secured credit cards that will give people a line of credit at times when they really need it. The only difference between these cards and standard ones is that you will have to put forward a deposit to guarantee your finances.

Looking for work is stressful at the best of times and a credit card can make things a lot easier when used carefully. Comparing a number of different card options and finding the best fit will help you to spend less time worrying about money and more time securing the perfect job.