When you are unemployed, it is difficult to apply for a credit card. But even if you have irregular income, credit card use is important for convenience, security, benefits and the rewards it offers. Not having a job does not mean that you are unable to repay a loan because you can state other sources of income besides a salary. Retirees can state income from investments or social security fund. Other people can include disability payments, child support payments or a household income you can access.
Credit card tips for the unemployed
Unemployed people need to protect their credit card without damaging their credit prospects. They can come up with a new plan which includes looking for a new job as well as a proper budget. Also, shy away from applying your credit card to get cash advances. Spending money in this manner is more expensive than basically utilizing it to pay for goods. Normally, cash advances have a higher interest rate than buying items and you can incur an extra fee.
You also need to revamp your budget. Come up with a survival budget before you use your credit card. Shy away from buying anything unnecessary for example small luxuries such as Netflix subscription or coffee. Also, prioritize your expenditures by purchasing important things first and less important items last. A prioritized budget requires you, to begin with, food, shelter, and utilities. Make sure you factor in transportation to help you move around as you look for a new job.
Finally, make the minimum payments on your credit card and if your financial position changes, inform your Credit Card Company. For example, if you cannot afford to make the minimum payments, your company must be aware in time so that it can adjust accordingly. This will improve your trustworthiness and your credit rating at large. Make sure you know the terms and conditions of your credit card because it will enable you to act correctly.