Credit Cards for People on Benefits

‘Can I have a credit card if I’m on benefits?’ is a frequently asked question.
In our guide, thimbl gives the answers to some common queries about credit cards for people on benefits.

Can I get a credit card if I’m on benefits?

You could get a credit card, even if you’re on benefits, although this will depend on the credit card provider and the type of benefit(s) you receive.
Some credit card providers may consider certain types of benefits as income.

Some credit card providers require you to have a certain amount of income each month, so if they are willing to consider applications from people on benefits, you’ll need to make sure that your specific benefit(s) are included and that you also meet the minimum income criteria.

While it might be possible to get a credit card for people on benefits, you should think very carefully before you make an application. It’s important to be confident that you’ll be able to make the monthly repayments on your balance; not doing so could result in late charges and a decline in your credit score.

Which is the best credit card for benefits?

There isn’t specifically a ‘best’ credit card for people on benefits; the ideal credit card for you will depend entirely on your individual circumstances.
There are many different types of credit cards on the market, including standard credit cards, credit builders, and balance transfer credit cards. You should take your time in doing research into each option that could be available to you before you make an application.

The credit card you apply for should suit your financial needs and be affordable for you.

Which credit card is the easiest to get approved for when on benefits?

It’s important to note that no credit cards are ‘easy’ to get approved for. Your chances of being approved for a credit card will depend on several factors, including your credit score, credit history, and current financial situation.

When you make an application for a credit card, the provider will carry out a full creditworthiness assessment, which will include a hard search and/or an Open Banking-powered check. This allows the provider to see how you’ve managed credit commitments in the past and provides an insight into how likely you are to handle credit responsibly.

Which benefits could count towards income when applying for a credit card?

If you’re looking to apply for a credit card on benefits, you may have wondered, ‘which benefits count as income for a credit card?’ or even something more specific, such as, ‘does Personal Independence Payment (PIP) count as income for a credit card?’

The benefits that could count towards income when applying for a credit card will vary between providers. It’s a good idea to check the eligibility criteria of your chosen provider.

Which benefits don’t count towards income when applying for a credit card?

Again, this will depend on the specific requirements set out by the provider.

Credit cards for people on benefits: thimbl could help

You could get a credit card with thimbl, even if you receive benefits. Please refer to the ‘thimbl credit cards for people on benefits: which benefits count towards income?’ section further down the page for information on the eligibility criteria.

thimbl has two credit cards to choose from, each tailored to a different financial situation.

• Credit cards for people on benefits: the thimbl Credit Builder Credit Card
  Are you hoping to build your credit score and work towards a healthier credit position?
  The thimbl Credit Builder Credit Card could be a suitable choice for you.
  Use the thimbl Credit Builder Credit Card to make a necessary, affordable purchase, and then make at least the minimum repayment amount due on your account each month.
  Your repayment habits will be reported to the credit reference agencies (CRAs), and over time, you could notice an increase in your credit score.

  This type of credit card could be most effective when used alongside other credit-building methods, such as ensuring all your bills are paid on time, and registering to vote at your current address.

• Credit cards for people on benefits: the thimbl Balance Transfer Credit Card
  If you’re paying off the balance of one or more existing credit cards, the thimbl Balance Transfer Credit Card could be something to look into.
  You could save money on the amount of interest you’re currently paying by transferring the balance(s) of your existing credit card(s) onto the thimbl Balance transfer Credit Card, which comes with 0% interest for 6 months.
  What happens if I don’t clear my balance before the interest-free period comes to an end? Any balance left on your credit card once the interest-free period comes to an end will be charged interest at your standard rate.
  To check your eligibility for the thimbl Balance Transfer Credit Card, please click through to our online form here.

thimbl credit cards for people on benefits: which benefits count towards income?

As listed in our full eligibility criteria below, you’ll need to be employed and earning a monthly income of at least £800 after deductions before you’re able to be considered for a thimbl credit card. In addition to wages earned from your job, this income could include certain, long-standing benefits, such as Carer’s Allowance and Disability Allowance.

Related post: Credit Cards for Carers

Can I check my eligibility for a thimbl credit card if I’m on benefits?

Yes. You can check your eligibility for a thimbl credit card if you:

• Are between the ages of 18 and 70;
• Are a UK resident with at least 1 year's UK address history;
• Have a monthly net income of at least £800;
• Have an active credit account that has been open for a minimum of 12 months; and
• Do not already hold a Zable credit card.

Zable is a trading name of Lendable Ltd.* Lendable Ltd is unable to consider applications from anyone who has declared bankruptcy or is in an Individual Voluntary Arrangement (IVA).

*thimbl is a credit broker. The thimbl credit card is powered by Zable, a trading name of Lendable Ltd.

How to check your eligibility for a thimbl credit card

1. It should take just 90 seconds to fill out our online form and find out whether you’ve been pre-approved for a thimbl credit card.

   Notes: our soft search eligibility check will not affect your credit score. Please be aware that pre-approval does not guarantee acceptance.**

2. If you’ve been pre-approved, you’ll be redirected to Zable, our trusted provider. You’ll be prompted to download the Zable mobile app, where further checks will be carried out as part of a creditworthiness assessment.


3. If you pass Zable’s checks, you could start using your virtual thimbl credit card the same day. Your physical card should arrive in the post in 5-7 working days.

How to repay your thimbl credit card

You will need to make at least the minimum repayment amount each month. If you can, you should try to make more than the minimum repayment.
Able to clear your balance in full? You won’t be charged any interest.

Are you finding it difficult to keep on top of your thimbl credit card repayments? Please contact your credit card provider, Zable, as soon as you can. They will be able to talk you through any options that could be available to you, which could include a reduction in your monthly payments.

What to do if you’re worried about money

If you’re struggling with your finances, it might be worth considering reaching out to one of the following charities and organisations for free, confidential advice: StepChange, MoneyHelper, Citizens Advice, and National Debtline.

**If you choose to make a full application, a creditworthiness assessment will be carried out by Zable. This will consist of a hard search and a further check powered by Open Banking. A hard search will remain on your credit file for up to 12 months, and multiple hard searches within a short period of time could have a negative impact on your credit score. Any credit obtained upon successful application will be provided by Lendable Ltd.

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