No Minimum Income Credit Card

One of the clauses of the Credit CARD Act of 2009 recently signed by the President dealt with stricter rules on accepting credit card applications from consumers who do not have the means of maintaining a credit card account.

Starting February 22, 2010, the ability to pay a loan or a credit card debt is now a big consideration for approval. This means lesser chances of getting credit cards for students and those without a regular-paying job. According to the CARD Act, individuals that are below 21 are restricted from getting credit cards unless they have the ability to pay for it independently or have a co-signer to support them and be liable for the account. Hence, applying for no minimum income credit card may prove to be a difficult thing without a co-signer.

However, upon perusing credit card websites, I did find one card still including no minimum income requirements on its features. The only no minimum income credit card I found was the Citi Platinum Select Visa Card for College Students. This credit card explicitly states “no minimum income or cosigner required” in its advantages and even offers credit education tools and online account access to cardholders. Qualifying applicants for this card are given a 0% APR on purchases for the first 7 months after account opening. After this period, they are reverted to the standard variable purchase APR of 16.24%, 17.24%, 20.24%, or 20.24% depending on their credit rating. For cash advances, this no minimum income credit card charges an APR of 25.24%. Missing payments or going over the limit, however, may prompt a default APR of 29.99%. Other fees for this no minimum income credit card include a foreign purchase transaction fee of 3% of the amount of each purchase in US dollars, a minimum finance charge of $5, and a balance transfer fee and a cash advance fee of 3.0% of the amount or a minimum of $5.

Student credit cards from Discover now require applicants to write their income bracket on the application form. They are, however, given the option to write zero on these spaces. Capital One student cards, on the other hand, do not include income in their application forms. Both credit card companies do not explicitly state a minimum income in their requirements so students who wish to apply for their credit cards may need to make an effort to ask about this requirement.

Finding a no minimum income credit card is really difficult at this time especially with stricter federal rules and regulations. Though this helps prevent heaps of credit card debt, it limits the purchasing power of consumers and does not help students build a credit history and learn financial management on their own.


Source: Credit Cards For People With Bad Credit Rating

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