Credit cards can help you build a good credit history and give you some financial flexibility while you’re a student. However, because credit card applications require income verification, students with low or no income frequently find it to be a significant obstacle. Fortunately, even if you don’t have a traditional source of income, you might still be eligible for secured and student credit cards.
In This Article
In this guide, we’ll go over the income requirements associated with credit card applications and how, as a low- to no-income student, you can meet them. The top eight credit cards for low-income students in 2024 are listed in order of preference and include cards from Capital One, Chime, Current, and Discover.
Is income required on a credit card application?
Yes, proof of income is required for standard credit cards.
Student credit cards, however, have less stringent requirements. These cards lower the income threshold and consider applicants more thoroughly because they recognise that students occasionally depend on grants, allowances, or family support. Numerous elements are considered as well, including your academic standing, credit history, and prospective future earnings.
Is employment required in order to apply for a student credit card?
Indeed, you should normally be employed in some capacity, whether it be through a part-time job or an internship. Financial stability greatly increases your chances of approval. But as evidence that you can afford a line of credit, credit card companies also take into account other sources of income, such as parental allowances and scholarships.
Credit cards that are secured are also excellent choices. They give students the chance to establish a credit history without requiring them to take out an unsecured credit line, which can result in debt and interest payments.
How to Get a Student Credit Card With No Income
To prevent debt accumulation, we strongly advise having a source of income as a first line of defence. Nevertheless, students without a source of income can use a number of techniques to unlock credit cards, including:
- Spend money with secured credit cards to establish credit.
- Establish a credit history by using a family member’s card as an authorised user.
- Apply for cards designed just for students that have fewer income requirements.
- On the application, list all of your sources of income.
- To cut expenses, choose credit cards with minimal or no annual fees.
- When permitted, think about using a cosigner as collateral; however, the cosigner runs the risk of having their credit score negatively impacted.
What Should I Enter on Student Credit Card Applications Under Income?
There are other acceptable sources of income for credit card applications besides an employee’s salary. Grants, scholarships, and family financial support are all acceptable sources of income.
What is the minimum income requirement to obtain a student credit card?
You might need an annual income as low as a few thousand dollars for a more conventional card. The amount of money you deposit determines your ability to use a secured credit card; income is not a requirement. Choosing a secured credit card is a safer option because it lets you establish credit without exposing you to the significant risks of accruing large debt and interest payments. Upon entering the workforce, you can eventually switch to a standard credit card that offers better benefits and interest rates as your credit improves.
When applying for credit cards, what is considered income?
The most transparent indicator of financial stability is employment income. But a wide range of other assets qualify as sources of income as well. Let’s review them below:
Employment income: This is a glaring example of income that shows both present-day independence and future financial security.
Grants and scholarships: Educational grants and scholarships help you qualify for some credit cards by counting as income while you’re still a student.
Allowances: A regular allowance from your guardian or parents may also be included in your total income. On the other hand, aiming for separate sources of income from a job promotes self-sufficiency.
Investment income: This includes interest and dividends from stocks, bonds, savings accounts, and mutual funds.
Spousal income: If you’re married, you can include your spouse’s earnings in the household income section of your credit card application.
Repay the whole amount due each month on schedule.
Pay off your credit card debt in full each month to prevent accruing interest and debt.
When making large purchases, credit cards can be helpful. By allowing you to pay gradually rather than all at once, they increase your cash flow flexibility. However, this could put you in credit danger as a student without a steady source of income. It could be difficult for you to pay back the money you borrowed, plus interest.
For students, we strongly advise secured credit cards, which limit your spending to a deposit you’ve made. Plus, you can begin establishing your credit history with them without having to worry about going over budget. Later on, once you’re employed regularly and are able to pay off your bills on time, you might want to look into switching to a regular credit card with intriguing rewards and benefits.
1. Chime® Secured Visa® Credit Card
The Chime® Secured Visa® Credit Card is a great option for students with low or no income. The fact that there are no yearly or monthly fees makes it an appealing option. Additionally, Chime offers the benefit of assisting you in establishing your credit history without putting you at risk of incurring debt or missing interest payments.
By allowing you to spend up to this amount, the money you deposit into the Credit Builder serves as collateral for your card and essentially provides you with a monthly means of covering your own charge payments.
Your Chime Checking Account must have received one qualifying direct deposit of $200 or more in order to be eligible to apply for Credit Builder. Additionally, opening a Chime High-Yield Savings Account with a Chime Checking Account gives you access to a handy set of financial planning tools.
- Intro Offer: None
- Rewards: Fee-free overdraft up to $200 for eligible members
- Regular APR: N/A
- Annual Fee: $0
- Credit Needed: None
The Chime® Secured Visa® Credit Card’s key features
In brief, the Chime® Secured Visa® Credit Card is as follows:
- No credit check is required to apply.
- There’s no minimum amount to deposit.
- You can overdraft up to $200 with SpotMe.
- over 60,000 ATMs without fees;
- Use direct deposit to get your paycheck up to two days early.
- Credit builder contributes to an average 30-point improvement in your FICO Score®;
- With their optional High Yield Savings Account, earn 2.00% APY.
2. Current Build Card
The Current Visa® Secured Credit Card is another card that we suggest for establishing credit history and a high credit score. Your credit history is strengthened when you use Current to report your activity to credit bureaux, such as when you enable AutoPay or pay off your balance on time.
This credit card is issued by Cross River Bank and is accepted everywhere Visa credit cards are accepted. It is licenced by Visa U.S.A., Inc. All things considered, Current is a well-liked financial platform that provides tools for spending analysis, savings accounts, checking accounts, and more.
- Intro Offer: None
- Rewards: 1x-7x points, redeemable for cash back
- Regular APR: N/A
- Annual Fee: $0
- Credit Needed: None
Key Features of the Current Build Card
Here’s what you should know about the current build card:
- No credit check is required to apply.
- There is no need for a minimum security deposit.
- You are able to overdraft up to $200 using Current Overdrive.
- over 40,000 ATMs without fees;
- Use direct deposit to get your paycheck up to two days early.
- Either 0.25% or 4.00% APY is paid on balances up to $2,000 per savings pod (minimum $0.01) and up to $6,000 overall.
3. Brigit Credit Builder
Brigit is a secure loan—not a secured credit card—that can be a useful resource for low-income students trying to establish credit. This technique raises your credit score through loan repayments. But the Credit Builder is only available with the Brigit Premium plan, which costs $14.99 a month. We believe it’s worthwhile to take a look at Chime and other options without a membership fee.
The first step in the Brigit Credit Builder process is opening a 24-month account. As little as $1 can be contributed each month, and it gets reported to each of the three major credit bureaux. When the loan is repaid in 24 months, you will have built a solid credit history and will have access to all of your contributions that you have saved.
- Intro Offer: None
- Rewards: Fee-free cash advances up to $250
- Regular APR: N/A
- Annual Fee: $14.99 per month
- Credit Needed: None
Crucial Elements of a Brigit Credit Builder
Here is a brief overview of the services provided by Brigit Credit Builder:
- No credit check is required to apply.
- Receive a $250 cash advance maximum;
- Utilise their secure loans to establish your credit history.
- Obtain access to your complete credit report and credit monitoring with updates.
- Take advantage of restoration services, lost wallet assistance, and identity theft reimbursement up to $1 million;
- Use a gig marketplace to generate extra cash.
- Utilise their software to compare earnings, forecast bills, and analyse spending.
4. OpenSky® Secured Visa® Credit Card
With the OpenSky® Secured Visa® Credit Card, you can obtain a line of credit by making a deposit. With its Gold Unsecured Card option, the card offers a way to extend a real credit line, even though its $35 annual fee makes it less attractive than some alternatives. But be mindful of the APR that will be charged on the unsecured credit line.
- Intro Offer: None
- Rewards: None
- Regular APR: 25.64% (variable)
- Annual Fee: $35
- Credit Needed: Poor
OpenSky® Secured Visa® Credit Card’s salient features
In brief, here’s more about OpenSky®:
- Apply without a credit check and find out right away if you’re accepted.
- The approval rate on OpenSky is 87% on average.
- Possibilities for credit line expansion with no further deposit needed after six months
- You could be eligible for the OpenSky Gold Unsecured Card in as little as six months.
- Using your OpenSky account, view your FICO® score.
5. Discover It® Student Cash Back
We suggest Discover It® Student Cash Back because of its remarkable high cash back rate of 5% at specific retailers, which is assured to remain valid until the end of 2024. In contrast to the Chrome card, this one gives you more freedom by letting you exchange your cashback for rewards when you shop online. To make sure you can afford the repayments on this card, you must have a source of income.
- Intro Offer: 0% intro APR on purchases for 6 months
- Rewards: 5% cash back at select retailers; 1% cash back on all other purchases.
- Regular APR: 18.24%–27.24% (variable)
- Annual Fee: $0
- Credit Needed: Fair/New to Credit
Everything You Should Know About Student Cash Back with Discover It®
Here is a quick summary of Discover It® Student Cash Back:
- Get up to 2% cash back at various locations every quarter, including gas stations, restaurants, grocery stores, and Amazon.com.
- Get 1% cash back indefinitely on all other purchases;
- Applying does not require a credit score.
- Use their app to instantly freeze your card.
- Discover provides a free service that is activated with the mobile app and helps you limit the exposure of your personal information online.
6. Capital One Quicksilver Rewards for Students
We suggest Capital One’s Quicksilver Rewards for Students to students who want to learn the ins and outs of credit card rewards programmes and benefit from a flexible travel concierge. The lack of foreign transaction fees makes it more appealing to students who are planning international travel or studying abroad.
The card’s 1.5% cash back rate is higher than the typical 1% rate present on many student credit cards. But be aware that this card has an above-average annual percentage rate (APR). It is highly recommended that you look into regular expenses with this card before attempting to establish a steady income through employment.
- Intro Offer: $50 cash bonus once you spend $100 on purchases within 3 months.
- Rewards: 1.5% cash back on all purchases
- Regular APR: 19.99%–29.99% (variable)
- Annual Fee: $0
- Credit Needed: Fair
What You Should Know About Student Quicksilver Rewards at Capital One
The following information pertains to Capital One Quicksilver Rewards for Students:
- Get 1.5% cash back, no limit, on every purchase;
- no fees for foreign transactions when spending overseas;
- Instead, choose to use your rewards as store gift cards.
- Receive extra protection under warranty for qualifying items;
- Earn 5% indefinite cash back on reservations made through the Capital One travel portal for lodging and car rentals.
- Up until November 14, 2024, receive 10% cash back on Uber and Uber Eats purchases.
7. Discover It® Student Chrome
For students searching for a reliable unsecured credit card—including those without a regular source of income—the Discover it® Student Chrome Card is a good option. On the other hand, it might be more difficult to pay off the entire balance in order to prevent accruing debt and interest.
If an applicant satisfies additional underwriting requirements, they may be eligible even without a credit score. Good cash back rates are available with this credit card, which has no annual fee.
- Intro Offer: 0% Intro APR for 6 months
- Rewards: 2% cash back at gas stations and restaurants, 1% on all other purchases
- Regular APR: 18.24%–27.24% (variable)
- Annual Fee: $0
- Credit Needed: Fair/New to Credit
Discover it® Student Chrome’s main features
What you should know about Discover it® Student Chrome is as follows:
- Get 2% cash back every quarter at gas stations and restaurants on purchases totalling up to $1,000;
- Get 1% cash back indefinitely on all other purchases;
- Applying does not require a credit score.
- Use their app to instantly freeze your card.
- Discover provides a free service that is activated with the mobile app and helps you limit the exposure of your personal information online.
8. Bank of America® Travel Rewards Credit Card for Students
For students who would prefer to learn about travel points over cashback, the Bank of America® Travel Rewards Credit Card for Students is a viable option to take into consideration. Be warned that using a travel rewards card like this can encourage spending in order to accrue points, which could put you in financial hardship if you don’t have a consistent source of income. As a result, after you have a reliable source of income and a high credit score, we suggest thinking about these cards with alluring introductory offers.
Generally speaking, one point is worth one cent; however, if you use Bank of America’s travel portal, you could get more points. For students planning international study or travel, the card’s no foreign transaction fees are an added bonus. But as always, we emphasise that before making regular use of this or any other card, you should secure a stable source of income through employment.
- Intro Offer: 25,000 online bonus points, 0% Intro APR
- Rewards: Unlimited 1.5 points for every $1 you spend on all purchases everywhere.
- Regular APR: 18.24%–28.24% (variable)
- Annual Fee: $0
- Credit Needed: Good
The Bank of America® Travel Rewards Credit Card for Students’ Principal Benefits
The Bank of America® Travel Rewards Credit Card for Students can be summarised as follows:
- 25,000 bonus points for online transactions if you spend at least $1,000 within the first ninety days of opening an account;
- You can exchange the 25,000 bonus points for a $250 statement credit to use for dining and travel expenses.
- For purchases, the 0% Intro APR is valid for the first 15 billing cycles.
- There is no yearly charge.
- Absence of fees for overseas transactions;
- Get your free, monthly updated FICO® score.