Can I get a credit card if I’m unemployed?
Yes, in many cases, though your options will be narrower and the terms less generous than for someone in steady work. Lenders don't reject an application purely on employment status; what they're really assessing is whether you can keep up the repayments. That means they'll look at your overall income (including non-wage sources), your existing debts and outgoings, and your credit history, rather than a payslip alone.
Most credit cards of this kind require a minimum annual earning threshold, usually of around £10,000, but some only asking for £4,000. This is simply because without any proof of any kind of income, there is no way for the credit card companies to be sure that you will actually be able to pay back the credit you owe.
As well as a minimum earning threshold, there will be various other conditions that you must meet in order to be able to take out a credit card if you’re unemployed. Things that will be taken into account include how many times (and how recently) you’ve applied for similar cards in the past, and whether or not you’ve got a history of bankruptcy or any other county court judgements (CCJs).
How being unemployed could affect a credit card application
If you're unemployed, you could expect:
A smaller circle of cards to choose from, since many mainstream providers set a minimum income threshold.
You may be offered a higher APR depending on your circumstances.
A lower starting credit limit, which is usually a good thing if you're trying to keep borrowing manageable.
Can I get a credit card if I’m on benefits or universal credit
Yes, in many cases. Benefits don't typically appear on your credit report and aren't necessarily held against you directly, but a lender still needs to see that your total income covers the repayments. Universal Credit and other benefit payments can often count towards that assessment alongside any other income you have.
Can I get a credit card if I’m self employed
Yes, lenders are generally more interested in a demonstrable track record of income than in how you're employed, so recent bank statements or accounts can support your application even without a traditional payslip.
Understanding credit limits
The credit limit on a card is the maximum amount of credit you can have at any one time. If you’re unemployed, then the credit card company will impose a lower credit limit than they would for someone with a steady and/or larger income.
This reflects the risk that the card provider is taking by offering you credit. Since a credit card essentially amounts to a short term loan, the providers will want to be as sure as possible that you’ll be able to pay back what is borrowed.
Understanding APR
When you take out a credit card, you’ll be charged interest on any credit you use. This is factored into an annual percentage rate, or APR. The APR then is essentially the cost of the card.
Credit cards for the unemployed or for those with bad credit will typically come with a higher APR than those designed for people with steady employment and/or higher income.
Again, this reflects the added risk on the part of the credit card company when it comes to lending out credit.
What type of credit card should I get if I’m unemployed?
A credit building card is one option worth considering, particularly if you also have a limited or poor credit history. Credit building cards will typically come with a low limit that is comfortably within your means. The idea is that you can borrow and pay off your credit with ease, thereby steadily improving your credit score by demonstrating your ability to pay off debts.
Should I get a credit card while unemployed?
If you already have credit card debt and are struggling with irregular income, it's worth checking whether you're eligible for a balance transfer card, which could help you manage what you owe without paying interest for a set period. Compare this against your other options, and only apply if you're confident you can meet the repayments.
Credit card alternatives for the unemployed
If your credit rating isn’t too bad, but you are still struggling with irregular income and existing debt, then you might want to consider a balance transfer card.
A balance transfer credit card is designed to help those with a good credit rating but without a steady income and allows you to transfer debt from one card to another to help you temporarily avoid paying interest.
Tips for getting a credit card if you’re unemployed
Check your eligibility before applying. An eligibility checker uses a soft search, which won't affect your credit score, whereas a full application involves a hard search that can leave a small mark either way.
Only apply for one card at a time. Several applications in a short space of time can look like financial difficulty to a lender.
Start with a credit building card. These are designed for exactly this situation, with a low limit that's easier to be accepted for.
Be upfront about all your income. Benefits, pensions, rental income and savings interest can all count towards affordability, not just a wage.
Check your credit report first. Knowing where you stand helps you target cards you're actually likely to be accepted for, rather than collecting rejections.
Compare credit cards for the unemployed
If you're unemployed or have an irregular income, it's worth comparing your options carefully before applying, and only applying for cards you're confident you can comfortably afford to repay.
Use our credit card comparison service to see what you may be eligible for. It's free and won't affect your credit score, and can help you find a card that suits your circumstances