Credit Cards for Low Earners: 6 Things to Look For & Avoid

What to Look for in Credit Cards

When looking for credit cards, low income earners should first understand the ins and outs of credit cards. Some of the key things to look for in a credit card for low income earning individuals include:

  1. Low or zero annual fee: Many credit cards for low-income earners come with high annual fees, which can be difficult to pay for those on a tight budget. Look for a card with a low or no annual fee to save money in the long run. Zero annual fee credit cards are good for low-income earners because they do not require the cardholder to pay a yearly fee for the privilege of having and using the card. This can save a significant amount of money for those on a tight budget. Additionally, these cards often have lower interest rates, which can help to minimize the amount of interest that accrues on outstanding balances. This can make it easier for cardholders to pay off their balances in full each month, which can help them to avoid falling into debt. Furthermore, many zero annual fee credit cards also offer cashback or rewards programs, which can help to offset some of the costs associated with using the card.
  2. Zero processing fees: Avoid cards with high fees, such as processing or application fees. While the fees is small but why waste money. Because every penny should matter.
  3. Low interest rate: Such cards carry high-interest rates, which can make it difficult to pay off the balance. Look for a card with a low-interest rate to make repaying the debt more manageable.
  4. Secured cards: Secured credit cards are a good option for low-income earners with no credit or bad credit as they require a deposit which will be the credit limit. It can be a good way to build credit.
  5. Credit-building features: Look for a card that offers credit-building features such as free credit score tracking or personalized credit-building tips. It is also important to make sure that the credit card issuer reports to the major credit bureaus so that you can build credit over time.
  6. Rewards: Some cards offer rewards such as cash back or points for purchases. Look for a card that offers cashbacks and rewards that align with your spending habits.

Things to Avoid When Looking for Credit Cards for Poor Income Earners

On the other hand, some things to avoid when looking for a credit card for low-income earners include:

  • Predatory lending: Try to avoid cards with high-interest rates, hidden fees, or other predatory lending practices. These can burn your pocket in the long run.
  • High fees: Avoid credit cards with high annual fees, application fees, or late payment fees as these can add up and make it harder to pay off the balance.
  • No credit check: Avoid credit cards that don’t check credit scores.


Hi, I am Nikesh Mehta, owner and writer of this site. I’m an analytics professional and also love writing on finance and related industry. I’ve done online course in Financial Markets and Investment Strategy from Indian School of Business. I can be reached at [email protected].

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