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If you’re currently without a job — either temporarily or permanently — you may be wondering: ‘Do you need a job to get a credit card?’ While the answer will depend on your unique financial situation, know that it is possible to get a credit card with no job.

But even if you can get a credit card with no job, there are potential risks in borrowing money without a steady source of income. Here’s how you can get a credit card with no job, as well as the pros and cons to consider before you do.

Can You Get a Credit Card With No Job?

If you don’t have a full-time or regular job, you may still be able to get approved for a credit card. However, you may need to show other means of being able to pay your credit card obligations due to how credit cards work.

When applying for a credit card, credit card issuers are required to consider your ability to repay your debts when considering whether to approve your application. To determine whether you meet this credit card requirement, they’ll typically look at your income from a job or other sources. If you’re attempting to get a credit card with no job, this could include unemployment benefits, self-employment income, shared household income or retirement income.

What Does the Credit Card Act of 2009 Say?

The Credit Card Accountability Responsibility and Disclosure Act of 2009 (also known as the Credit CARD Act) is the federal law that governs many interactions between credit card issuers and applicants. One thing that the Credit Card Act of 2009 did was prevent credit card companies from issuing new cards to applicants under 21 years of age unless they have an adult cosigner or have proof of income. This makes it more difficult for young adults without a job to get their own credit card.

Guide to Listing Income on Your Credit Card Application

One of the biggest credit card rules is that you should always be completely truthful on your credit card application. If you don’t have a job or income, you should state that rather than inflating or lying about your total income.

If your issuer finds out that your application was not completely accurate, they may close your account. In turn, this could damage your credit.

Types of Income That You Can Report on a Credit Card Application

Now that you know the answer to the question, ‘can you apply for a credit card without a job?’, you’ll need to know how to fill out your application. You can use a variety of different types of income on your credit card application. Here are a few of the most common:

•   Employment income: Money you earn from employment is the most common source of income on credit card applications. This can include money from a seasonal or irregular job.

•   Self-employment income: If you have your own business, you can also include that on a credit card application. This can include money from contract or freelance work.

•   Unemployment benefits: Another potential source of credit card application income is unemployment benefits. If you’re temporarily out of work and receiving unemployment insurance benefits, you can include that on a credit card application.

•   Shared household income: The Credit CARD Act of 2009 states that you can include as income any money that you would reasonably expect to have access to. This could include a spouse’s income or an allowance provided by a family member.

•   Retirement income: Retirement benefits like a pension or Social Security are also considered an acceptable form of income for credit card applications. This also includes distributions from a retirement account.

Guide to Getting a Credit Card With No Job

If you don’t have a job and your other sources of income aren’t enough to get a standard credit card, then you do have a few other options you can consider.

Opt for a Secured Card

One option to consider is applying for a secured credit card. With a secured credit card, you generally make a refundable initial deposit. This deposit then serves as your total credit line. It is generally easier to get approved for secured credit cards than traditional, or unsecured, credit cards.

Become an Authorized User

Another possibility is to become an authorized user on a credit card. When you’re an authorized user on someone else’s account, only the primary account holder is legally and financially responsible for all purchases on the account. And if the primary account holder uses the card responsibly, it can help raise your credit score, even if you’re only an authorized user.

Consider a Cosigner

If you have a trusted friend or family member, you might also look at getting a credit card cosigner. Some credit card companies may not approve you for a new credit card on your own, but they may approve you if you have someone who will co-sign your application.

Keep in mind that a cosigner will be legally and financially on the hook for your purchases, so it may be difficult to find someone willing to cosign for you.

Look Into a Student Credit Card

Many card issuers offer a type of credit card marketed toward students. If you’re a student with a limited credit history and no income, you may stand a better chance of getting approved for a student credit card than a traditional credit card. Plus, these cards may have low fees and offer rewards tailored to students’ typical spending habits.

Pros and Cons of Getting a Credit Card When Unemployed

It is possible to get a credit card if you’re unemployed since you can list unemployment benefits, among other income sources, in your application. While there are certainly upsides to securing a credit card, you should carefully consider the downsides as well before applying for a credit card without a job.

Pros	Cons
Responsibly using a credit card can help improve your credit score	It may be difficult to get approved
Having a credit card makes it easier to make some types of purchases	If you are approved, you may not be approved for a very high credit limit
You may earn rewards and/or cash back with your credit card purchases	You may have trouble repaying your purchases without a steady source of income

Tips for Using a Credit Card Without a Job

While the answer to whether you have to have a job to get a credit card is technically no, there are some caveats attached to swiping your card without a steady income. Still, just because you don’t have a job doesn’t mean you can’t build your credit in your meantime. Here are some tips to keep in mind to use your credit card wisely:

•   Shop around for a card with a competitive rate: Especially if your financial situation has some uncertainty, you may end up carrying a balance at some points. To avoid paying any more than you need to in interest, make sure to take your time to shop around for the card that offers you the lowest rate.

•   Don’t spend more than you can afford to pay back: Before you use your credit card for any purchases, make sure that you’ll have the money to pay your bill off at the end of the month. If you won’t, you may need to reevaluate your overall spending habits to make sure you don’t fall into debt.

•   Pay each month in full to save on interest: One of the best things that you can do for your overall financial health is to reliably pay your bills in full, each and every month. If you do this, you won’t end up paying interest on your purchases.

•   Set alerts so you don’t miss your monthly payments: If you’re already tight on funds because you’re without a job, the last thing you want to deal with is late fees. Plus, aside from this cost, your credit score will also suffer. To make sure you remember to make payments on-time, consider setting an alert to remind yourself, or even autopay.

The Takeaway

It is possible to get a credit card with no job, but it may not be easy. And many premium or luxury credit cards may not be available to you. Make sure to account for all sources of income on your credit card application. Remember that in addition to income from employment, you can consider other forms of income like self-employment, retirement, or household income. Alternatively, you can consider options like a secured card, a student card or becoming an authorized user on someone else’s account.

If you do have good credit and a reliable source of income, you might consider the SoFi credit card.

FAQ

Can you get a credit card if you have no income?

Yes, it is possible to get a credit card if you have no income, but it may not be easy. Credit card issuers are required to consider your ability to pay your bills before approving you for a card. Keep in mind that you can use more than just money from employment as income. You can also use retirement, self-employment, or shared household income.

Do credit card companies know if you are unemployed?

Credit card companies do not directly know if you are unemployed, but your employment status is usually asked as a question on most credit card applications. However, if you already have a credit card account and then later become unemployed, that information is not generally shared directly with your credit card company.

Can you get a credit card when you’re on unemployment benefits?

Yes, it is possible to get a credit card if you’re on unemployment benefits. Credit card companies are legally required to consider your ability to pay all of your bills when deciding whether to approve you for a card. But this consideration can include income from many sources, not just income from employment.

What is the minimum income required to get a credit card?

There is not a set minimum income credit card requirement. Instead, different credit card issuers will consider your overall financial situation (including income) when deciding whether to approve you for one of their cards. While it is possible to get a credit card with no or low income, you may not be able to get approved for all credit cards.

Does unemployment affect credit?

If you lose your job and start receiving unemployment benefits, it won’t directly affect any credit cards that you already have. However, if your job loss starts to impact your ability to make your payments on-time, your credit card issuer may charge fees and/or raise your interest rate.

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Photo credit: iStock/damircudic

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .


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Despite the saying, “cash is king,” there are pros and cons to using cash over credit cards in everyday transactions. Likewise, credit cards have their own share of advantages and disadvantages when it comes to making purchases.

Here’s what you need to consider when choosing cash vs. credit cards, and when you might opt for using one method of payment over the other.

Defining Cash and Credit Cards

Cash is the legal tender — whether coins, paper bills, or other notes — that you can exchange for goods and services. According to Merriam-Webster, cash is considered “ready money” in that you actually own the value of the cash and can use it immediately during a transaction.

Credit cards, on the other hand, can also be used to purchase goods and services. However, you’re borrowing the funds from a third party (i.e. a bank) to make your purchase today, with the promise that you’ll pay the credit card balance back later.

When to Consider Using Cash

Deciding whether to use cash vs. credit depends on your purchasing situation and preferences. Situations when paying with cash is preferred might include:

•   Buying goods or services from merchants who only accept cash

•   When your credit or income doesn’t qualify for a credit card

•   Limiting your spending to a specific amount

•   Keeping your personal information private during a transaction

•   Avoiding credit card-related fees

•   Avoiding credit card debt

You can also use cash to grow your money through an interest-bearing deposit account, instead of spending it. If you’d like to build your savings fund, you can only do so using cash.

Recommended: How to Avoid Interest On a Credit Card

Benefits of Using Cash

Since cash represents the monetary value you actually have, it makes budgeting simple. If you have $100 in cash to spend for the weekend, for instance, you’re focused to make careful decisions in how you spend that finite cash amount. After you’ve depleted your cash, you can’t make additional purchases until you have more cash.

Additionally, cash provides some convenience despite its additional physical bulkiness in your wallet. For merchants, the benefit of cash vs. credit cards is that they save money on credit card processing fees. To avoid this, some merchants only accept cash payments, while others offer a nominal discount as an incentive for customers to pay using cash.

Cash can also widely be used by any consumer, regardless of their credit score. This makes cash a more accessible payment method for everyday purchases. It also doesn’t contain any of your personal data, so if a private and untraceable purchase is important to you, cash is beneficial.

Recommended: When Are Credit Card Payments Due

Drawbacks of Using Cash

The biggest drawback to using cash vs. credit, however, is that it caps your buying power to only the amount of cash you have. Although this can be a benefit as mentioned above when you’re on a budget, it can restrict your ability to make larger purchases today.

For example, if your car unexpectedly needs a repair that costs $800, but you only have $500 in cash to pay upfront, you’ll have to make a tough decision. You might be forced to shop around for a cheaper car repair shop, spend time negotiating a lower price with the current mechanic, or possibly wait on the repair until you have the additional funds necessary. All of this can cost you extra time, and possibly earning potential if you rely on your car to drive to work.

Aside from fixed purchasing power, physical cash is harder to trace between transactions. Your personal information isn’t tied to cash bills in your pocket. This means that if you lose it or it gets stolen, and it’s used by someone else, it’s harder to get back.

When You Might Consider Using a Credit Card

There are many use cases for credit cards, if you qualify for one. Some situations when a credit card might make sense include:

•   Making a larger purchase now and paying it off later

•   Breaking down a large purchase into smaller installment payments

•   Earning points, miles, or cash back on purchases using a rewards credit card

•   Unlocking additional purchase protections

•   Building your credit profile

Recommended: Can You Buy Crypto With a Credit Card

Benefits of Using a Credit Card

Using a credit card as a payment method for daily transactions offers various benefits when managed responsibly. For example, if you don’t have enough cash for a purchase, a credit card lets you buy it now and pay it back the following month.

You can also choose to take out a credit card cash advance (though typically at a higher APR than your standard purchase APR), or even send money with a credit card.

With a credit card, you get to choose how you’ll repay your purchases, whether in full when your billing statement is due, or incrementally over multiple months. The caveat is that letting a balance roll over to the next month incurs interest charges.

Since all credit card activity is reported to the credit bureaus, on-time payments and other factors can be favorable to building your credit history and credit score. A high credit score can help you qualify for competitive interest rates and terms on other consumer credit products, like other credit cards and loans.

Credit cards also offer benefits and rewards that cash doesn’t provide. Rewards credit cards let you earn points or miles that you can then redeem for travel, cash back, gift cards, merchandise, special experiences, and more.

Different credit cards can also offer benefits like travel cancellation protection, warranty insurance, and more. For example, some cards feature purchase protection, which replaces an item that was lost, stolen, or damaged, if it was purchased using the card.

Another major perk when using a credit card is that it limits your liability when unauthorized or fraudulent purchases or activity occurs on your account. Depending on when you report the unusual activity, you might only be liable for up to $50 of those charges. Some credit cards even have zero-liability policies.

Recommended: What is a Charge Card

Drawbacks of Using a Credit Card

Interest charges, expressed as an annual percentage rate (APR), are one of the biggest disadvantages to using credit vs. cash. With how credit card payments work, unless you make full, on-time credit card payments each month, interest charges will likely apply to balances that roll over from one month to the next.

If you roll over a balance, you’ll not only pay more money toward your purchases, but your outstanding debt can snowball quickly. This can prove financially damaging to your everyday finances and to your credit if you fall behind on payments while amassing growing debt.

Certain credit cards also incur annual fees for the privilege of using them. This is money that you’ll pay out-of-pocket upfront. With a credit card, you can also incur other fees, such as foreign transaction fees, late payment fees, balance transfer fees, and more.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Is Using a Debit Card the Same Thing as Using Cash?

Using a debit card is similar to using cash. In fact, one of the biggest differences between a credit card and debit card is that debit cards draw funds from the cash that you already have in your personal checking or savings account. Still, a debit card provides the convenience of swiping or tapping a card on a payment processing machine, like a credit card, to process a digital transaction between your bank and the merchant’s bank.

However, debit cards carry many of the same disadvantages as cash. For one, a debit card limits your purchasing power to the amount that’s in your checking or savings account. Additionally, debit cards don’t offer the same level of protection against unauthorized or fraudulent activity as credit cards do.

Recommended: What is the Average Credit Card Limit

Understanding Your Spending Habits Is Key to Picking Which to Use

Taking stock of your buying habits can help you decide whether cash vs. credit is a better option for you. When considering these two payment options, think about the following:

•   How much do you spend each month?

•   How much discretionary income do you have?

•   Where do you typically make purchases — online or in a brick-and-mortar store?

•   Do you tend to overspend or stay within a budget that you can afford?

•   If you’re thinking about a credit card, what’s your goal?

By answering these questions, you will likely be able to tell which payment method will be more convenient for you. For instance, if you’re trying to curb your spending, then cash might be the better bet, given how credit cards work. On the other hand, if you’re primarily an online shopper or you’re trying to build your credit history, a credit card could be worth exploring.

The Takeaway

Cash helps you contain your spending to the money you actually own. This can potentially limit the amount of debt you’d take on through credit. It can also offer convenience when it comes to shopping through cash-only merchants. The caveat is the risk you’re taking on if the cash is lost or stolen since it can be difficult to get back.

Meanwhile, credit cards offer you peace of mind if your card is lost or stolen. They provide greater protection against unauthorized activity, including fraudulent payments. However, access to borrowed funds puts you at risk for getting deeper into debt if you’re unable to repay your balance on time each month. With responsible borrowing habits, however, credit cards can be a handy way to make purchases.

If you want the convenience and protection of using a credit card, consider a card that offers you cash-back rewards on every purchase.

FAQ

Which is better when traveling, cash or credit?

When traveling, credit cards are a safer option to carry than cash. It can be difficult and near impossible to trace and verify whether lost or stolen cash belongs to you. If a credit card is lost or stolen, the card issuer can freeze new transactions on the account, and your maximum liability for fraudulent charges is $50, or nothing at all.

Are credit cards safer than cash?

Yes, credit cards are safer than cash. Credit cards reduce your liability in the event of unauthorized or fraudulent activity.

What is the difference between cash and credit cards?

Cash is a physical currency and liquid asset that provides you with purchasing power. When you use cash toward a purchase, you don’t owe that amount to another entity. Conversely, a credit card is a physical tool that lets you increase your purchasing power using borrowed money. You’ll need to repay purchases made to your credit card, possibly plus interest charges.

Cash or credit, which is more convenient?

Whether cash or credit is more convenient is subjective. For example, while many merchants accept credit cards, some only accept cash payments. However, as more businesses accept digital payments and transition to cashless transactions, a credit card might be more convenient.

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Photo credit: iStock/Ridofranz

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .


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It is (sometimes) possible to buy stocks with a credit card, but it’s rarely a good idea for most people. Most brokerages do not allow you to directly fund your account with a credit card, and even if you find a brokerage that does, the fees associated with buying stocks with a credit card can outweigh any advantages.

Before you buy stocks with a credit card, make sure you understand the risks as well as the benefits. Investing in the stock market always comes with a degree of risk. If your investments lose money, you may not be able to pay off your credit card statement, which will mean that you’ll have to pay additional interest.

Using Your Credit Card to Buy Stocks

Most brokerages do not allow you to use your credit card to buy stocks. For example, SoFi’s online trading platform does not permit you to fund your account with a credit card. Brokerages generally don’t allow you to buy stocks with a credit card to help comply with the federal regulations governing financial products, such as stocks.

However, while you can’t purchase stocks directly with a credit card, there are still ways you can use your credit card to fund your purchase of stocks. This includes using cash back rewards to fund investments as well as taking out cash advances. Another option is to use a credit card that allows you to transfer funds to a checking account, which you can then move over to your brokerage account.

Recommended: Tips for Using a Credit Card Responsibly

Benefits of Buying Stocks With a Credit Card

You generally aren’t able to buy shares of stock with a credit card, and even if you find a workaround to do so, the risks mostly outweigh the potential benefits.

Perhaps the main benefit if you’re investing with credit card rewards is that it can offer a way to put the rewards you get from your everyday purchases toward your financial future. While there’s no guarantee of success in investing, it’s possible the rewards points or cash you invest could grow in the stock market.

Risks of Buying Stocks With a Credit Card

Just like buying crypto with a credit card, buying stocks with a credit card comes with considerable risk. If you attempt to do so, take note of the following potential downsides:

•   Investments in the stock market may lose value. If this happens, you may have a hard time paying off your monthly credit card statement in full.

•   There are fees associated with buying stocks with a credit card. If you can find a brokerage that allows the purchase of stocks with a credit card, you’ll generally pay a fee to do so. Additionally, if you opt for a cash advance to use to buy stocks, you’ll also run into fees, not to mention a higher interest rate. There’s always a chance your investment returns won’t offset these costs.

•   High credit utilization could affect your credit score. Making stock purchases with your credit card, taking out sizable cash advances, or racking up spending in order to earn rewards could all drive up your credit utilization, a major factor in determining your credit score. Having a high credit utilization — meaning the percentage of your total credit you’re using — could cause your credit score drop.

•   You could get scammed. If you’re getting offers to buy certain shares with your credit card, there’s a chance it’s a scam. Do your own research before making any moves, and be wary before providing any personal information.

Recommended: Can You Buy Crypto With a Credit Card

Factors to Consider Before Buying Stocks With a Credit Card

There are a variety of different factors that you should keep in mind before buying stocks with a credit card.

Investment Fees

If you do find a brokerage that allows you to buy stocks with a credit card, they will likely charge a credit card convenience fee. This fee, which helps the brokerage to offset their costs for credit card processing, usually runs around 3% of the total price of your investment. Starting 3% in the hole makes it very difficult to make profitable investments.

Recommended: What is a Charge Card

Cash Advance Fees

If your brokerage does not support buying stocks with a credit card, you might consider taking out a cash advance from your credit card. Then, you could use the cash to fund your brokerage account.

However, this transfer will often involve a cash advance fee, which typically will run anywhere from 3% to 5% of the amount transferred. Additionally, interest on cash advances starts to accrue immediately, which is different than how credit cards work usually, and often at a higher rate than the standard purchase APR.

Transfer Fees

Another way to use your credit card to purchase stocks is by making a balance transfer. You can transfer funds from your credit card to your checking account, and then move that money again to your brokerage account. In addition to the hassle of moving money around, you’ll likely pay a balance transfer fee, which is often 3% or 5%. Plus, interest will start accruing on balance transfers right away unless you have a 0% APR introductory offer.

Interest

If you’re not able to pay your credit card statement in full (because your investments have decreased in value), your credit card company will charge you interest. With many credit card interest rates often approaching or even exceeding 20% APR, this will very likely swallow up any profits from your short-term investments.

You’ll also want to look out for interest getting charged at a higher rate and starting to accrue immediately if you opt for a cash advance or a balance transfer.

Recommended: How to Avoid Interest On a Credit Card

Avoiding Scams When Buying Stocks With a Credit Card

Because most reputable brokerages don’t allow you to buy stocks with a credit card, there are occasionally scams that you need to be on the lookout for.

Watch out for individuals or lesser-known companies that say you can buy stocks with a credit card through them. Do your own research to make sure it is a legitimate brokerage and offer before using these other companies.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Does Buying Stock With Your Credit Card Affect Your Credit Score?

The act of just buying stock with your credit card won’t affect your credit score any more than any other purchase on a credit card. However, your credit score might be affected if you aren’t able to pay your monthly balance off in full. One of the best ways to improve your credit score is to always make sure that you have the financial ability and discipline to pay off your credit card statement in full, each and every month.

Additionally, your credit score could take a hit if you use too much of your available balance or even max out your credit card with your stock purchases, as this would increase your credit utilization. Also, you might see an impact on your credit if you open a new account to fund your stock purchases. This is because credit card applications trigger a hard inquiry, which will temporarily cause a dip in your score.

Alternatives to Buying Stocks With a Credit Card

As you can see, buying stocks with a credit card generally isn’t a great option — or even possible with most brokerages. If you want to start investing in stocks, you might consider these other ways to do so:

•   Cash back rewards: Then, you can take your cash back rewards that you earn and use them to invest in stocks or other investments.

•   Employer-sponsored 401(k): A great way to invest is through an employer-sponsored retirement plan like a 401(k). By using a 401(k), you’ll get to invest with pre-tax dollars and defer paying taxes until you make withdrawals in retirement.

•   Brokerage margin loans: If you’re looking to borrow money to invest, one option could be a brokerage margin loan. These allow you to borrow money directly from the brokerage, often at a lower rate than what’s offered by most credit cards. Be aware of the risk involved here though — even if your investments don’t pan out, you’ll still have to repay your loan.

The Takeaway

Very few (if any) brokerages allow you to directly buy stocks with a credit card. If you do find a brokerage that allows you to buy stocks with a credit card, note the fees involved, not to mention the risk of loss in investing and the possibility of damaging your credit score. This is why even if you do find a way to do it, it’s rarely a good idea to buy stocks with a credit card for most people.

One alternative is to get a cash back rewards credit card and then use rewards you earn to fund your stock investments.

FAQ

What is credit card arbitrage?

Credit card arbitrage is usually defined as borrowing money at a low interest rate using a credit card and then investing that money, hoping to earn a higher return on investment. This is often done with cards that offer 0% introductory APRs.

What are the risks of credit card arbitrage?

The biggest risk of credit card arbitrage is that your investments will lose money, or they won’t make enough money to repay your credit card balance. This can cost you a significant amount of interest and/or credit card fees. You should also be aware that having a large balance on your credit card (even if it’s at 0% interest) can have a negative effect on your credit score.

Does buying stock with a credit card affect my tax?

Buying and selling stocks does often come with tax consequences, and you should be aware of how your investments affect your tax liability. How you buy stocks (with cash, credit card ,or in other ways) doesn’t affect the amount of taxes you might owe on your stock purchase.

Should I buy stocks with my credit card?

The way that credit cards work is that you borrow money and, if you don’t pay the full amount each month, you’re charged interest. Some brokerages may also charge credit card processing or convenience fees if they allow you to purchase stocks with a credit card. Because of the interest and fees potentially involved, it’s very difficult to come out ahead buying stocks with a credit card. Plus, there’s no guarantee of success when investing.

Is it safe to buy stocks with a credit card?

Because most reputable stockbrokers do not accept credit card payments to fund your account or buy stocks, you’ll want to be careful with any site that says that it will let you buy stocks with a credit card. Follow best practices for internet safety when trying to buy stocks with a credit card, just like you would before making any purchase online.

Do stockbrokers accept credit card payments?

Most stockbrokers do not accept credit card payments to fund your account or to buy stocks. If you want to buy stocks with a credit card, you will need to find a workaround such as taking a cash advance from your credit card and using that to fund your brokerage account. Just be sure that you understand any cash advance fees and the interest rate that come with that type of financial transaction.

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Photo credit: iStock/katleho Seisa

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

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The difference between a payment due date vs. closing date is important to know for responsible credit card management. The credit card closing date marks the end of your billing cycle, which determines how much you’ll owe when your credit card payment comes due. Your credit card due date, on the other hand, is when you’ll need to make at least the minimum payment if you want to avoid a late fee.

By understanding the implications of both your credit card closing date and your credit card due date, you can better strategize to make purchases and also ensure you make on-time payments.

Recommended: Tips for Using a Credit Card Responsibly

What Is a Credit Card Closing Date?

A credit card closing date determines your credit card “billing cycle,” which spans an interval of about 28 to 31 days. This day might vary each month, but according to the Consumer Financial Protection Bureau (CFPB), it can’t vary by more than four days.

The bank uses your credit card’s statement closing date to determine which purchases are calculated toward the current statement’s total balance and the minimum credit card payment that’s due. Any purchases made after your credit card closing date are applied to the next month’s billing statement.

The closing date for a credit card is also the date the bank uses to calculate your credit card’s finance charges, which are also called the interest charges. Typically, credit card issuers offer a grace period on new purchases starting on the date after the closing date until your credit card payment due date. During this time, interest charges aren’t incurred yet.

Although many credit card companies offer a grace period, it’s not a requirement, so check the terms of your credit card closely.

Recommended: What Is a Charge Card?

What Is a Credit Card Due Date?

Another critical date to remember when it comes to your credit card account is your credit card due date. Payments received by the bank by 5 p.m. on the credit card payment deadline are considered on-time; after this period, your credit card payment is considered past due.

Your credit card due date is the same for each billing statement. For example, if this month’s credit card bill is due on June 15, your next billing statement will be due on July 15. This due date applies regardless of whether you’re making a full payment for your statement balance or the minimum amount due.

Although you should always aim to make your credit card payment on time, card issuers generally don’t report late payments to credit bureaus until 30 to 60 days after your credit card due date. Late fees might be applied to your credit card account if you don’t make a payment by the credit card payment due date, however, given how credit cards work.

Recommended: When Are Credit Card Payments Due?

Differences Between a Credit Card Closing Date vs Due Date

Here’s a look at some of the key distinctions between credit card payment due date vs. closing date to keep in mind:

Credit Card Closing Date	Credit Card Due Date
Last date of billing cycle	Last date to submit an on-time payment
Date before grace period begins	Date before the next billing cycle begins
Date might change slightly	Same date every statement period
Affects your credit utilization ratio	Can impact your credit score

How Your Credit Card Closing Date Affects Your Credit Score

On your credit card statement closing date, your card issuer typically reports your account activity, including your card’s outstanding balance, to the three credit bureaus — Experian, Equifax, and TransUnion. This information impacts your credit utilization ratio, which is the ratio of credit in use compared to the amount of credit you can access.

As an example, let’s say your closing date is May 20, and you made a $2,000 purchase on your credit card on May 15. That purchase will be reported and can increase your credit utilization ratio. A high credit utilization ratio can adversely affect your credit score.

Now, let’s assume the purchase isn’t urgent and you waited until May 21 to put the charge on your credit card. In this scenario, your $2,000 credit card purchase wouldn’t be reported to the credit bureaus until the end of your next billing cycle. And if you pay it off before then, it might not affect your credit utilization ratio.

Determining Your Next Credit Card Statement Closing Date

Knowing how to decipher your credit card bill each month can help you to uncover your statement closing date. Typically, you’ll find your billing cycle dates at the top of your credit card bill. This might be called your “opening/closing dates,” and it typically will be displayed as a date range.

When reading your credit card statement, you can find these dates and then count the number of days between the dates. Then, count forward from the credit card closing date to determine your next credit card statement closing date.

Guide to Changing Your Credit Card Due Date

You might find that changing your credit card due date can help you better manage your credit card payments. This might come up if you get paid on a certain date each month and want your due date to fall closer to payday.

Generally, card issuers are willing to work with you on a due date that will help you make regular, on-time payments. However, credit issuers have different restrictions, so talk to your credit card issuer to see whether it’s flexible.

To change your credit card due date, you can either:

1.    Call the phone number at the back of your credit card to speak to a customer service associate who can help.

2.    Log in to your credit card’s online account and make the change (if available) yourself.

Be aware that it can take one to two billing cycles to see the change on your account.

What You Should Know About Determining Your Time to Pay

Your credit card closing date and payment due date can help you strategically decide when it’s time to pay your credit card bill. For example, if you need to keep your credit utilization low to improve your credit to secure a mortgage loan approval, then paying your credit card bill before your closing date can help.

However, if you simply want to avoid interest charges and late fees on your purchases, making a payment by your credit card due date is sufficient. Still, make sure to stay mindful of the potential to fall into credit card debt, which can be hard to shake (here’s what happens to credit card debt when you die).

Recommended: Can You Buy Crypto With a Credit Card?

The Takeaway

Your payment due date vs. closing date are two very important dates that relate to your credit card account. However, they aren’t the same and have different implications for your credit. Being aware of both dates can help you strategically make purchases in a manageable way and ensure you make payments on time.

If you’re looking for a new rewards credit card, the SoFi Credit Card is an option to consider.

FAQ

Should I pay off my credit card before the closing date?

Paying off your credit card as early as possible is always ideal, if it’s possible. Doing so can help you maintain a low credit utilization ratio, which is beneficial to your credit score.

Can I make more than one payment per statement period on my credit card?

Yes, you’re allowed to make more than one payment per statement period to pay off your statement balance. In fact, doing so can help you potentially avoid incurring interest charges and rolling a balance into your next billing cycle.

Can I use my credit card between the due date and the closing date?

Yes, you can use your credit card between the due date and the credit card statement closing date. Purchases made after your credit card due date are simply included in the next billing statement.

Is the credit card closing date the same every month?

Not always. Your credit card closing date might be the same date each month, but billing cycles can vary up to four days from the regular closing date.

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Photo credit: iStock/Seiya Tabuchi

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .


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If you’re going through a life transition or identity shift, you’ll need to change your legal name. And beyond making the update on government-issued IDs and your social media account, you’ll need to change your name on your credit cards as well.

If you have multiple cards, this might be a tad trickier — and more time-consuming. To avoid the process turning into a stressful, hair-pulling endeavor, we’ll go over the process of how to change your name on credit cards.

Recommended: Tips for Using a Credit Card Responsibly

Reasons for Changing Your Name on a Credit Card

Here are the most common reasons for undergoing a legal name change:

•   Getting married

•   Getting divorced

•   Changing your name to one that’s a better fit for you

•   Changing to mother’s or father’s last name as an adult

•   Undergoing a gender transition (i.e., male-to-female [MTF] or female-to-male [MTF]) and adopting a moniker that’s more representative of your new identity

Steps to Get a Name Change on a Credit Card

Are you asking yourself, “Can I put a different name on my credit card?” The answer is yes — canceling your credit card won’t be necessary. Here’s how to change your name on credit cards.

Update Your Name on Government-Issued ID Cards

Before you reach out to your credit card issuer to change your name, you’ll need to update your alias on government-issued ID cards, such as your Social Security card, driver’s license, and passport.

Not taking this initial step will leave you at a standstill with changing your name on a credit card. That’s because your credit card company will most likely request a legitimate form of ID that verifies that your name has already been legally changed.

To change your name on your Social Security card, you’ll need to submit an application. You’ll also need to provide proper documents verifying your name and identity change. Then, you must submit everything via snail mail or by dropping it off at a nearby Social Security office.

As for changing your name on your driver’s license, each state has slightly different steps. For more information, start by sleuthing around your state’s DMV website.

To learn how to update your name on your passport, visit the U.S. Department of State’s website , where it lays out the process.

Contact Your Credit Card Issuer for Necessary Information

Next, you’ll want to check your credit card issuer’s website for details on how to go about making a legal name change on your credit card. Credit card requirements and procedures for each card issuer can differ.

A time-saving tactic: If you need to change your name across all of your credit cards, block out a few hours and research the steps and necessary information and documents you’ll need to execute the name change. Jot down the main steps and what information and documentation is needed.

Depending on the credit card company, you may have to go to a physical location to make the change, or you may be able to do it over the phone or online. An issuer might ask that you fill out a form through its online portal, while another may have you talk to someone via chat or phone first.

Collect Documents and Information Requested by Your Issuer

If you’ve done your research ahead of time by looking on a credit card issuer’s website, then you might have handled this step before reaching out to the issuer.

Either way, depending on the reason for the name change, here are some documents and information that you might need to gather:

•   Photo ID

•   Government-issued ID like a driver’s license or other legal document showing the name change

•   Signed W-9 with your new name

•   Social Security number

•   Marriage certificate

•   Divorce decree

•   Birth certificate

•   Court order approving the name change

Some credit card issuers will ask for a driver’s license and ID, while others might need more substantial proof, such as a marriage license. Similarly to if you were getting a credit card for the first time, it’s worth investigating in advance.

Submit Your Documentation

As previously mentioned, how you can submit documentation will depend on the requirements and process of the credit card issuer. Some issuers allow you to do everything online or over the phone, while others require you to step foot inside a physical office and speak with a representative. Issuers may have a handy form that you can easily access online, or they might require that you give them a call.

One thing to keep in mind: When making the name change across your cards, or when applying for new cards, make sure to be consistent in how your name appears. Otherwise, this could cause issues later on, given what a credit card is and how it works.

Recommended: Does Applying For a Credit Card Hurt Your Credit Score

Follow Up If the Name Change Doesn’t Take Effect After Some Time

After the name change is approved by the credit card issuer, you’ll need to wait to receive a new card in the mail. How long you’ll wait before you have a new card in your hands can vary, but expect to wait at least five days.

If it’s been more than 10 days after the change was given the green light, follow up by reaching out to the credit card issuer and asking for a status update. If there’s been a snag, they can look into this further.

Changing Your Name on Your Credit Report

Once you change the name on your credit card accounts, you don’t need to take any action to have this change reflected on your credit reports.

Your credit card issuers will automatically let each of the three credit bureaus know. This usually happens at the end of the billing cycle. And should you open a credit card with your new name, this will also be reflected on your credit report.

If you notice that something went awry while changing your name — for instance, the new name shows up incorrectly — make sure to reach out to the credit bureau where the error appears and file a dispute. Once your dispute is received, the credit bureau usually has 30 days to look into it and get back to you.

How Long Will a Name Change Take to Update?

As mentioned before, how long a name change takes to update will largely depend on the credit card company. Each card issuer has different time frames for when the name change will get approved and processed.

For instance, one credit card issuer number may be able to approve the change over the phone and drop a card in the mail right away. Another issuer might require you to talk to them over the phone, then pay them an in-person visit to drop off your forms and required documentation.

What to Expect After a Name Change

Once your name is updated on your credit cards, you can go out into the world under your new moniker. The transition is usually pretty seamless, though you’ll want to look out for any typos or errors.

You’ll be able to use your credit cards in all the ways you had before — online, in-person, and through your digital wallet. If you’re still waiting for your new card with your updated name to arrive in the mail, you might consider carrying an unexpired government-issued ID with your old name on it just in case.

Does Changing Your Name Affect Credit?

Changing your name doesn’t not affect your credit in any way, shape, or form. While your new name will be reported to the three major credit bureaus on both existing and new cards, it won’t impact your credit history.

Keeping an Eye on your Credit

After you’ve updated your name on all your credit cards, stay on the lookout for any potential snags, such as a typo in your name. Certain mistakes can create confusion and further errors given how credit cards work. If you see anything amiss on your credit report, make sure to report it immediately.

Otherwise, the same basic credit card rules and practices apply once you’ve submitted your request for your name change.

The Takeaway

Making a name change on a credit card doesn’t have to be an overwhelming process. While there are certain steps to take, doing your homework and learning what those steps are and how they differ between different credit card issuers will help ensure smooth sailing. If you’re applying for a credit card, remember you’ll need to open it under your updated name as well.

Whether you're looking to build credit, apply for a new credit card, or save money with the cards you have, it's important to understand the options that are best for you. Learn more about credit cards by exploring this credit card guide.

FAQ

How can I change the name on my credit card after marriage?

You’ll need to make the change directly with each credit card issuer. Before you reach out, poke around the credit card issuer’s website and look into the specific steps involved. From there, gather the information and required documents. Depending on the issuer, you’ll need to submit an application either online or in person.

Does changing my name impact my credit score?

Changing the name on your credit cards to match your legal name will not impact your credit score in any way. Once the name is updated, the credit card companies will report the change automatically to the credit bureaus.

Does the name on a credit card matter?

Yes, the name on a credit card needs to match legal documents, such as your Social Security number and driver’s license. So if you’re undergoing a name change, you’ll need to update your cards to reflect this.

Should I leave my credit cards in my old name?

No, your credit cards need to match your legal name. If you’re changing your name due to a marriage, divorce, gender transition, or some other reason, you’ll need to update the name on your credit cards so everything is the same.

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Photo credit: iStock/BongkarnThanyakij

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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