How To Get a Credit Card Without Income Proof?

With the unique benefits that credit cards offer, they have become a necessity. They are no longer just a credit instrument as they help save costs, reduce your expenses, and offer exciting rewards in the form of vouchers and cashback. Applying for credit cards has become easier than ever with digitalization. However, to apply for a credit card, you must submit certain documents such as your identity proof, address proof and income proof. Proof of income is an important document for the bank as it is used to assess your repayment ability. Without proof of income, it can be difficult to get a credit card, but it is not impossible to get one. In this article, we have explained in detail how to use a credit card without income proof.

What is a valid income proof for a credit card?

Income proof, as the name suggests, is a document that confirms your income from various sources, including salary, business income, interest, dividend and rent. Proof of income helps financial institutions such as banks, non-banking financial companies (NBFC), and asset management companies assess your creditworthiness and ability to repay your loans. Moreover, income proof is also used to trace the original source of income and check whether it is from a clean source.

The following are the documents that are considered as valid income proofs.

For salaried employees

• Salary slip: A salary slip or pay slip is a document containing details about the gross salary, allowances, deductions, and take-home salary. An employer issues the pay slip to an employee every month. It is an important document as it confirms a person’s employment status and also acts as a proof of income.
• Form-16: It is a legal document provided by the employer or any institution and acts as proof that they submitted the money to the government authorities that was deducted as tax from your income. Form 16 helps you file your taxes easily as it shows clearly the TDS (tax deducted as source) and TCS (tax collected at source) deducted before you receive your income.
• Rental agreement or lease: A legal contract between the owner of the property and the person who desires to rent the property is a rental agreement. On the other hand, a lease is a legal agreement between two parties for a fixed period to earn a fixed income in exchange for land, property or services.
• Bank statements: A bank statement is a document provided by your bank which includes information about the current bank balance and all your transactions (income and expenses).
• Income tax return (ITR) statements: An income tax return statement is a form through which you will report your income from all sources to the income tax authorities. The authority will then decide your tax liability based on the information you provide and verify it.

For self-employed

• Business ownership proof: Documents such as partnership deed, proof of directorship in a company, and any document supporting your sole proprietary firm will help the bank access the state of your business.
• Profit and loss statement: Your business’ profit and loss statement will act as a proof your your financial position and fulfil the need for an income proof.
• Professional practice certificate: Doctors, chartered accountants, lawyers, and architects need to provide a copy of their professional practice certificate received by the respective professional bodies.
• Dividend statements: Individuals receiving dividends from mutual funds, or companies as a major source of income need to provide a copy of their dividend statements. 
• Trade license: A trade license is issued by the local authority to operate a business in the jurisdiction of a local body.

How do you get a credit card without income proof?

Although providing income proof is necessary to get a credit card, banks and credit card issuers give credit cards without any income proof. The following are the ways through which you can get a credit card without income proof.

1. Open a bank account

Having a bank account has become mandatory. However, many still don’t have a bank account. Hence, ensure you have a bank account and always maintain enough balance. Moreover, when you apply for a credit card, make sure you apply it with the bank you have an account already, as it makes it easier to obtain a credit card.

2. Have sufficient bank balance

In absence of income proof, banks and credit card issuers consider having a decent bank balance as being financially adequate. They assess your creditworthiness through your bank balance and your credit-to-debt ratio. A bank balance higher than the credit card limit you are applying for and a credit-to-debt ratio of 30% is considered ideal by the banks to issue credit cards.

3. Report every income

With many online platforms giving paid internships and part-time jobs, earning a secondary income has become easier than ever. With increased income, people fear that their tax liability might go up. Hence, many don’t report their secondary income. While that can help in reducing your tax liability, it can reduce your chances of getting a credit card or any loan. With low income, no banks would consider giving you a loan. If you report all your income, it will help boost your credit score, increasing the chance of you getting a credit card or a loan with a low-interest rate.

4. Get a secured credit card

Most credit cards in the market are unsecured. This means they do not require any collateral to back the credit card. However, it is these unsecured cards that require an income proof. So, instead of opting for an unsecured credit card, you can apply for a secured credit card that doesn’t require any proof of income. Banks usually issue secured credit cards against fixed deposits (FD).

To get a credit card against your FD, you must invest at least a certain minimum amount as specified by the bank. The banks decide the credit limit based on the amount deposited in the FD. It is usually around 75-85% of the FD amount. If you want a credit card with a higher limit, then the deposited amount in the FD should also be higher.

5. Get an add-on credit card

If you are applying for your first credit card and have no credit history or income proof, then you can get an add-on credit card through any family member. The primary family member should have a good credit history and credit score to get an add-on credit card. Then, you can easily apply for an add-on credit card through their credit card. The card will be issued in your name, and you need not pay any joining fee or show any income proof to get this card. Moreover, you can improve your credit history through it, and the primary credit card holder will be responsible for paying your credit card bills.

6. Apply for a student credit card

Any student who is above the age of 18 years can apply for a student credit card. To apply for this card, you need not show any income proof or provide extra documentation. This card also comes in handy for people who quit their jobs for higher studies. However, you must be a student to apply for this credit card.

7. Improve your creditworthiness

If you do not have proof of income despite working for an organization, then you can improve your creditworthiness, which will help you secure a credit card without income proof. To improve your creditworthiness, you must always maintain a decent bank balance. Have a financial plan to avoid debt, pay off your dues on time, review your credit report and take steps to improve your credit score.

What alternatives are available to Pay Slip?

If you do not have a salary slip or pay slip, you can show any of the following documents to get a credit card.

• Offer letter: Your employer might not give you a salary slip, but there would be at least an offer letter which can act as proof of your employment. Banks accept even an offer letter to give a credit card.
• Monthly cheques: If you are a freelance professional or work on a contract basis, you can show a copy of the monthly cheques you receive from your clients as proof.
• Bank statements: As mentioned above, your bank statement can also serve as proof of income to get a credit card.
• Income tax returns: If you file your returns every year, you can show your ITR forms as income proof to apply for a credit card.
• Financial investments: You can obtain a secured credit card against your fixed deposits, mutual funds, equity shares, and even insurance policies. You can always request the bank to help you build or improve your credit history by issuing a secured credit card against your financial assets.

Banks That Provide Credit Cards Without Proof Of Income

The following banks provide credit cards without income proof.

• State Bank of India
• Bank of Baroda
• Kotak Mahindra Bank
• Union Bank of India
• Axis Bank
• Central Bank of India
• Canara Bank

In conclusion, not having income proof shouldn’t stop you from applying for a credit card. You can get a credit card without income proof in multiple ways. If you are doubtful whether a bank will give you a credit card without income proof, then you can always talk to the bank to understand their policies.

Frequently Asked Questions

Can I get a credit card without a job?

Yes, you can get a credit card without a job. You can apply for a secured credit card against your fixed deposit or mutual fund investment. Alternatively, you can apply for an add-on, joint credit card, or student credit card. In all these cases, you need not have an income or show any income proof.

Is a salary slip mandatory to apply for a credit card?

Yes, a salary slip or proof of income is necessary to get a credit card. However, there are ways through which you can get a credit card without a salary slip. You can apply with a co-signer or get an add-on credit card, which does not require a salary slip. Alternatively, you also apply for a credit against your fixed deposit or mutual funds so you can skip showing proof of income altogether.

Can a housewife get a credit card?

Yes, homemakers can get a credit card through their spouse by applying for an add-on credit card. Alternatively, they can get their spouse or any family member with a good credit score to be a co-signer to get a credit card. In case they have any investments in financial assets such as mutual funds or fixed deposits, they can apply for a credit card showing these investments as proof.

Can I make a fake salary slip for a credit card?

Making a fake salary slip to apply for a credit card can land you in a host of problems. You could lose your job or lose the right to get further credit. Moreover, there could be legal action taken against you, and your PAN card can also be blacklisted. Once a case is filed against you, you might not even get a passport or visa to any country. Hence, it is best not to fake your salary slip. Instead, you can apply for a credit card by showing your income tax returns or your financial investments.

Can I get a credit card without my Income Tax Returns (ITR)?

Yes, you can get a credit card without your income tax returns. However, in such cases, banks usually ask for salary slips. It can be difficult to get a credit card if you do not have both (ITR and salary slips). In such cases, you can apply for an add-on credit card or get a co-signer to apply for a credit card.