One thing you’ll notice about almost every credit card application is that it will ask for your income.
But what if you’re currently unemployed, between jobs, or simply don’t have traditional employment income? You might wonder if you can get a credit card without a job.
The short answer is yes, but it depends on a few key factors.
In this guide, we’ll walk you through how to get a credit card without traditional employment and the types of cards that may be available to you.
Key Points
- You can get a credit card without a job, but you’ll generally still need some form of income, whether it comes from EI, pension, disability benefits, or some alternative source of income.
- Your credit score can have a big impact on your ability to get a credit card without a job.
- Alternative options to a regular credit card include secured credit cards and prepaid cards, some of which offer similar benefits to traditional credit cards.
Can You Get A Credit Card Without A Job?
Yes, it is possible to get a credit card in Canada even if you’re not employed. However, you’ll still require some form of income, whether that comes from EI, maternity leave, pension or some other government benefit.
For example, if you’re a senior with pension income or savings, you can still get a credit card, so long as your income from your pensions meets the credit card’s minimum income threshold.
Your ability to qualify for a credit card without a job can also be impacted by your credit history and the type of card you’re applying for. Generally, you’ll have a better chance of qualifying for a basic credit card than a premium one.
For example, if you’re a student with limited income, it’s best to apply with credit cards with low income requirements, such as student credit cards or no annual fee credit cards. There are also student credit cards available that don’t have a formal income requirement.
| Note: If you don’t qualify for a traditional credit card, you can apply for a secured credit card or prepaid credit card, which often have guaranteed approvals. |
Do Credit Card Companies Verify Your Income?
Generally, credit card companies do not verify your income by requesting pay stubs or bank statements. Instead, they’ll use the honour system or estimate your income level based on your credit report information.
That said, they can ask for additional documentation for income verification. For existing bank clients, they may use your existing credit card limits, payment history, and other accounts to determine your income and financial capability.
| What Happens If You Lie On Your Credit Card Application? Lying on your credit card application is illegal. It can lead to application denial and potentially more serious legal allegations, such as fraud. |
Credit Card Income Requirements – What Do You Need To Know
While many credit cards have minimum income requirements, just as many have low to no income requirements.
Moreover, employment income is not the only way to show financial stability. As mentioned, many credit card providers also accept alternative forms of income, such as pension, self-employment income and certain government benefits.
| Why Do Credit Card Companies Ask About Your Income? Credit card providers ask for your income to assess your credit limit and financial capacity to repay them. |
What Type Of Income Do Credit Card Companies Accept?
The type of income accepted will vary by credit card provider. Here are some types of income that may be accepted:
- Full-time or part-time job earnings
- Government benefits (such as disability income, pension, maternity leave, etc)
- Student loans or bursaries
- Private pensions
- Alimony or child support
- Investment income
- Other forms of income (freelancing, side-hustle etc.) as long as it is considered business income
| Important Note: In addition to income, your approval status will also be affected by: – Age (You must be the age of majority in your province) – Residency status (You must be a Canadian citizen or permanent resident) – Credit score (Many premium credit cards require a credit score of 660+) |
How To Get A Credit Card With No Job
Here are some practical strategies for getting a credit card when you’re unemployed:
Use Your Household Income
If you’re married or in a common-law relationship, you can use your household income to qualify for a credit card. Most credit cards will have an option on their application to include your household income. While household income requirements are higher than the personal income requirements, it may be easier to apply this way than on your own.
Note: If you’re currently unemployed but have a significant nest egg built up, you may be able to use your assets to qualify for a credit card. Some credit cards will approve you if you have $250,000 or more in savings or investments.
Become An Authorized User
Ask a family member or partner if you can be added as an authorized user on their card.
An authorized user is simply an additional user (a.k.a: supplementary cardholder) on a credit card. As an authorized user, you can use the credit card just like the primary user (though access to perks may be limited), however, you’re not responsible for the credit card payments.
You and the primary cardholder will have to make your own arrangements regarding payments. Moreover, as an authorized user, you won’t be able to build your credit score, as most providers only report the payments under the primary cardholder.
Learn more: What Is An Authorized User On A Credit Card?
Look For Low Minimum Income Requirement Credit Cards
Some credit cards in Canada don’t have a minimum income requirement or have a very low income requirement. For instance, Tangerine’s Money Back Credit Card only requires an annual income of $12,000. These cards also often have no annual fees.
Many of these credit cards also come with a cash back or points system, allowing you to redeem rewards. However, they generally lack certain features such as a comprehensive travel insurance package, concierge service, and car rental insurance.
| Note: You’ll generally still need good credit. If you have bad credit, your options will likely be limited to secured credit cards. |
Apply For A Student Credit Card
If you’re a student, there are also specific student credit cards designed with fewer requirements and lower credit limits–which is a great option for those with low income or limited credit history.
Many of Canada’s big banks such as RBC, Scotiabank, and TD offer student credit cards with no annual fees.
Apply For A Store Credit Card
Store credit cards, such as those from Canadian Tire or Walmart, often have more lenient approval requirements. These cards can be a helpful entry point to accessing credit, given relatively lower barriers to applying.
Learn more: Best Store Credit Cards In Canada
Other Credit Cards You Can Get Without A Job
If traditional credit cards aren’t available to you, here are some alternative options that still offer credit-like flexibility:
Secured Credit Cards
These cards work just like regular credit cards, but you’ll need to provide a security deposit (usually $50–$500), which acts as your credit limit. You can then make purchases and pay off the balance to restore to your credit limit.
Secured credit cards are a good choice for people without a job, as approval is nearly guaranteed if you can meet the minimum security deposit. Moreover, there are generally no credit checks or income requirements.
Additionally, you can use a secured credit card to build your credit as your payments are reported to the credit bureau. Some secured credit cards also come with perks such as cash back, insurance and other benefits.
How To Use A Secured Credit Card Strategically
Using a secured credit card strategically involves the following:
- Making timely payments consistently: Pay your full balance on time each month to show that you’re financially responsible. Consistent, one-time payments help build a positive credit history, which is essential for qualifying for an unsecured credit card in the future.
- Setting up automatic payments: Setting up automatic payments or reminders can ensure you never miss a due date.
- Keeping your balance low: Maintain your card balance under 30% of your credit limit can improve your credit utilization ratio, which is a key factor in your credit score calculation.
- Using the card regularly and responsibly: Use your secured card for small, manageable purchases every month to develop a pattern of responsible usage. This shows creditors that you’re a reliable borrower.
| Annual Fee | Purchase Interest Rates | Min. Deposit | |
 Secured Neo Mastercard | $5/monthly | – 19.99% – 29.99% – QC: 19.99% – 24.99% | $50 |
 Secured Tims® Mastercard | $0 | – 20.99% – 26.99% – QC: 20.99% – 24.99% | $50 |
 Home Trust Secured Visa Card | 0$ or $59 | – 19.99% (no annual fee) – 14.90% (with annual fee) | $500 |
 Vancity enviro™ Secured Visa* card | $0 – $395 | 11.25% or 19.50 % | $500 |
Reloadable Prepaid Cards
Unlike traditional credit cards, with prepaid credit cards, you’re spending your own funds—not a credit limit. With reloadable prepaid cards, you can use them to make purchases online or in person. It’s ideal for budgeting, avoiding debt, or for those who can’t qualify for regular credit cards.
Moreover, many of these prepaid cards offer various benefits, such as:
- Cash back like credit cards
- Savings interest like a savings account
- Free transactions like an unlimited chequing account
Some popular options include Neo Money and KOHO.
However, do note that prepaid cards do not help you build credit, as payments are not reported to the credit bureaus.
Drawbacks Of Getting A Credit Card Without A Job
Getting a credit card without a steady job can come with several challenges and potential risks that borrowers should carefully consider before applying:
- Limited options: You may not qualify for premium cards with higher limits, rewards, or travel perks. These cards often require higher income thresholds or excellent credit scores, which are harder to achieve without steady employment.
- Limited credit building: Some alternative cards, like prepaid cards, don’t report to credit bureaus unless paired with a credit-building program. Be sure to check whether your activity will help grow your credit profile.
- Higher risk of rejection: Without proof of income, lenders may be hesitant to extend credit, especially if your credit score is low or thin. Frequent rejections can also further decrease your credit score.
- Impact on credit score: Applying for too many cards at once can hurt your credit score due to hard inquiries. It’s better to research and apply selectively for cards where you meet the requirements.
- Potential debt risk: Without stable income, there’s a higher risk of carrying a balance and falling into debt. Credit cards can be a good financial tool, but they can make it easy to overspend. If you can’t pay off your balance in full each month, interest charges can quickly add up. Only borrow what you know you can repay. You may want to consider setting up alerts or auto-payments to stay on top of due dates.
Benefits Of Getting A Credit Card Without A Job
Having and using a credit card can influence your credit score, even when you’re unemployed. Here’s how:
Builds Credit
Timely payments can do wonders for your credit score. With a credit card, your on-time payments will be reported to the credit bureaus in Canada: Equifax and TransUnion. So, your credit score can be affected positively if you pay your bills on time.
Plus, maintaining a low credit utilization ratio — which represents your balance relative to your credit limits — can help you build good credit, as it makes up a significant portion of your credit score calculation. It’s in your best interests to keep your spending below 30% of your credit limit.
Learn more: Best Credit Cards To Build Credit
Helps You Upgrade To A Regular Credit Card
As your credit score improves with responsible usage of your credit card, you may qualify for pre-approval offers or automatic upgrades to unsecured cards. Using your card responsibly shows lenders that you’re creditworthy, even if you are not traditionally employed.
Take Advantage Of Welcome Bonuses
Credit card welcome bonuses can earn you hundreds in cashback, points, or travel perks. You can use larger planned purchases to reach spending thresholds to get these bonuses without overspending. Just be sure to read the fine print to avoid unexpected fees or conditions.
Have A Credit Source For Emergencies
With a credit card in your pocket, you’ll have immediate access to credit when an emergency expense pops up, without having to wait to apply and get approved for a loan.
How To Transition To An Unsecured Card When You Get A Job
If you’ve only been able to get a secured credit card up to this point, upgrading from a secured credit card to an unsecured card after getting a job is a great way to strengthen your financial profile. Here’s how to make the transition:
- Wait until you’ve been consistent with payments: Wait 6 to 12 months after consistently making timely payments on your secured credit card and maintaining a low balance (less than 30% of your credit limit).
- Look out for upgrade offers: Credit card providers often offer automatic upgrades to cardholder who have demonstrated responsible account management. Check your dashboard to see if an offer awaits.
- Request an upgrade: Call your credit card issuer to ask if you qualify for an upgrade to an unsecured card.
- Consider keeping your old card open: Closing a credit card can reduce your average account age and lower your total available credit, which can both negatively affect your score. If your card doesn’t have an annual fee, consider keeping it open.
Learn more: Switching From a Secured Credit Card to a Regular Credit Card
Bottom Line
You don’t need a traditional job to get a credit card in Canada, but it is helpful to understand your options. Whether you rely on government benefits, are a student, or work freelance, there’s likely a credit product that suits your situation while also enabling you to build your credit. Be realistic about your credit limit, avoid unnecessary spending, and use your card to build good credit habits, because strong credit can open doors later on when your income increases.
