A Credit Card for People on Social Security Disability
A lot of people are using credit cards nowadays. Ones find credit cards necessary to build credit history. The others cannot imagine their lives without credit cards. Many things like renting a car, booking a hotel room and even every day purchases are thought next to impossible without a valid credit card.
But what to do when your income is limited to Social Security disability payments? Can you get a real credit card, not a prepaid card?
While some credit card companies and banks can be reluctant, the others may issue you a credit card. It may be very difficult to qualify for a credit card though.
You will need to show your income and expenses. All sources of income will count. And your rent or mortgage expenses along with other debt will be considered as well. These things do matter to creditors. They want to insure you will be able to repay timely.
Fortunately, there are some ways to get a credit card you need.
Start with the bank where you already have your checking or savings account. Ask for an application for its credit card. Often it is easier to qualify for a credit card if you have existing relationship with a bank.
If your rent/mortgage payment does not exceed one-third of your income, you may get approved for a general unsecured credit card.
Consider a secured credit card if you do not qualify for a general credit card. You will be required to deposit money into a bank account to secure your credit card. This deposit will be used as collateral against your credit line. The creditors usually refund the security deposit if you close your account and pay your balance in full.
When you get a credit card, you should use your credit card responsibly. Try not to charge on your card more than 30% of your available credit limit. If you pay off the balance on your credit card every month, you can avoid paying interest.