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Credit card companies ask for your income when you fill out an application, but how much is enough to get approved? If you're a college student who earns $100 per week from a part-time job, can you get a credit card? What about if your only source of income is a Social Security benefit?
The short answer is that the minimum income for a credit card depends on the particular card and your personal credit history, but you'll needsome income to get approved. There is no set-in-stone minimum, but here's what you need to know about income and credit card approval before you get started.
How income affects credit card applications
Broadly speaking, there is no minimum income requirement to get approved for a credit card, as long as your income could easily cover the minimum payments on a relatively small credit line. However, your income will help the credit card issuer set your limit, which can not only impact your spending power but can have credit scoring implications as you use your credit card.
With some forms of debt (like mortgages), there are pretty clear income guidelines. But with credit cards, it's a little less clear. Credit card issuers are legally required to ask applicants for their income, and to use that stated income to verify the borrower can afford their monthly payments. But there aren't any set-in-stone guidelines.
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Credit card issuers use different methods of determining their minimum monthly payments, and borrowers can have significantly different interest rates. So a $1,000 credit line can have very different monthly payment requirements on two different cards.
That said, credit card companies typically use these factors to set a credit limit (or open an account):
The borrower's stated income
The borrower's credit score
Other open credit lines
Other loan balances
Debt payment amounts (like mortgage or rent payments)
Credit card issuers won't thoroughly investigate your income like a mortgage or auto lender would. For example, it's rare for a credit card company to ask to see your W-2s. As long as you have some income, the biggest factor in the approval process is your credit score and other credit accounts.
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Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
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Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
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You can use earned income from employment, self-employment, or independent contractor roles to qualify for a credit card. But here's some good news, especially if your income isn't from traditional sources (like a job).
You can also several other types of income to qualify for a credit card:
Government payments: Payments you receive regularly can be used to help qualify for a credit card. This includes Social Security retirement and disability payments, just to name a couple examples.
Retirement income: Distributions from your IRA, 401(k), other qualified retirement accounts, and pension payments can be counted as income.
Allowances and gifts: If you are 21 or older and regularly receive payments in these categories, and the money is available for debt payment, you can consider it as income on a credit card application.
Scholarships and grants: College students, take note. If you get scholarship or grant funding in excess of your required expenses like tuition, you can use it to qualify for a credit card.
If you're under 21, but at least 18, the rules are a little different. Income you include must be yours, so allowances, gifts, and third-party income cannot be considered. You'll essentially need personal income from a job, or scholarships and grants that justify the credit line.
The short answer is "sort of," but it's become much more difficult in recent years to get a credit card with no income. Prior to the passage of the CARD Act in 2009, it was much easier for credit card companies to give cards to people with no income. This was especially true for college students -- most people who attended college before the CARD Act went into effect will remember the credit card companies soliciting students to apply outside of the student center. Not anymore.
Having said that, if you don't have income, here are a couple of ways to get a credit card:
Be an authorized user: If you don't have income, one potential solution is to convince someone else to add you as an authorized user, such as a parent.
Use someone else's income to qualify: In 2013, the CARD Act was amended so applicants 21 and older can include someone else's income (say, a spouse), as long as they have reasonable access to that income.
If you're a student looking for a credit card that's a good match for your lifestyle, take a look at a few we recommend below to see if one might be a good choice. You can also check out our full list of the Best Student Credit Cards for more.
Do you need income to get a secured credit card?
A secured credit card is one that requires a refundable security deposit to open. It can be a good way to start building or rebuilding credit. But there's a popular misconception that you can get a secured credit card with no income since you're required to put down a deposit to open the account.
A deposit does make it easier to overcome a lower credit score on a credit card application. But secured credit card issuers generally want to see that a borrower has income. Aside from the deposit, a secured card isn't treated much differently (legally speaking) than a standard credit card.
FAQs
Yes. You can get a credit card with relatively low amounts of income, but the credit limit you get will be related to that amount (Higher incomes tend to get higher limits, but not always).
Technically there is no minimum income, although credit card companies are legally required to ensure the applicant's income will be sufficient to support the card's monthly payments. They will also look at other factors like your credit score.
No. It may sound tempting to lie about your income to improve your chances of approval, or to get a higher credit limit, but this is a bad idea. In practice, credit card companies rarely verify an applicant's income (it's most common with applicants under 21). However, lying on a credit application is fraud and can result in serious fines and/or jail time if you're caught.
Yes. Credit card applicants can include income from disability benefits, including:
Supplemental Security Insurance (SSI)
Social Security Disability Insurance (SSDI)
Other government payments like Social Security retirement income
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Discover Financial Services is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. Matt Frankel has positions in Amazon and Bank of America. The Motley Fool has positions in and recommends Amazon, Bank of America, JPMorgan Chase, Mastercard, Target, and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.
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