topic Re: Does cash assistance count as income? in Credit Card Applications

Does cash assistance count as income?

Anonymous — Wed, 07 Dec 2016 18:33:40 GMT

I receive government cash assistance (TANF-temporary assistance for needy families) for a family of 3. We receive $500 a month. But we have only been receiving it for 4 months. Does it count as income when applying for credit cards? Also, does food stamps count as income, because we have that as well...

If cash assistance counts, then what should I say my yearly income is, if we only received it for 4 months? Should I just multiply $500 by 12? Or not... Plus, I did work last year part-time and earned about $4000 for last tax period (2015). Should I add my earned income and cash assistance when saying what my actual "income" is? So it would be 4000 + 500 * 12 = $10000? Or is this an incorrect way of calculating income?

Re: Does cash assistance count as income?

Anonymous — Wed, 07 Dec 2016 20:01:43 GMT

@streampaw wrote:
I receive government cash assistance (TANF-temporary assistance for needy families) for a family of 3. We receive $500 a month. But we have only been receiving it for 4 months. Does it count as income when applying for credit cards? Also, does food stamps count as income, because we have that as well...
If cash assistance counts, then what should I say my yearly income is, if we only received it for 4 months? Should I just multiply $500 by 12? Or not... Plus, I did work last year part-time and earned about $4000 for last tax period (2015). Should I add my earned income and cash assistance when saying what my actual "income" is? So it would be 4000 + 500 * 12 = $10000? Or is this an incorrect way of calculating income?

I don't mean to sound rude, but if you are on government assistance that includes cash and food a credit card is the last thing you will need. I would say that you are pushing the envelope even if you were to get a secured credit card. In the end, it might be a difficult obligation to meet. I don't know your entire situation, but based off of what you've disclosed it's probably not a good idea. I've been there too and needed EBT to keep my family alive, but you can and will overcome this obstacle. Just be patient.

Re: Does cash assistance count as income?

JustBPatient — Wed, 07 Dec 2016 20:13:57 GMT

This might be a wait till your situation is better type of thing. If anything shoot for a secured card if you are looking to build.

Re: Does cash assistance count as income?

Anonymous — Wed, 07 Dec 2016 20:15:04 GMT

I need a credit card in order to get cash back on diaper purchases. I am a huge couponer and I am up to date on rebates, and I am a penny hoarder, so every penny I make counts.

Re: Does cash assistance count as income?

Anonymous — Wed, 07 Dec 2016 20:16:06 GMT

Could you guys tell me if I can use cash assistance as income on credit card applications?

Re: Does cash assistance count as income?

Countingpennies — Wed, 07 Dec 2016 20:37:58 GMT

Yes, I believe it does, however, since you currently don't have previous credit experience as in no credit score, for a first card you may be asked for proof of income, so don't put anything down that you can't provide proof of. Part-time income from over a year ago likely won't be accepted.

You've been given some good advice in your other threads on how to start building credit. Save up some money and start with a secured card, to build history.

Re: Does cash assistance count as income?

UncleB — Wed, 07 Dec 2016 21:14:38 GMT

@streampaw wrote:
Could you guys tell me if I can use cash assistance as income on credit card applications?

To give you a direct answer to your question, generally the answer is yes.

If you would share the card you're interested in applying for we can help you look at the fine print to make sure.

This being said, I'm not going to judge either way if getting a credit card is wise (or not); that's for you to decide personally. If you ask that question directly, though, I will share my opinion if you would like it.

Re: Does cash assistance count as income?

UncleB — Wed, 07 Dec 2016 21:18:45 GMT

At the risk of taking this thread off-topic, I just want to offer a reminder that just because someone's getting assistance doesn't mean they have 'bad' credit or are irresponsible.

It's very possible for someone on assistance of any type to be responsible enough to use credit for rewards (PIF each month), but just on a smaller scale.

Re: Does cash assistance count as income?

Anonymous — Wed, 07 Dec 2016 21:32:35 GMT

@UncleB wrote:
At the risk of taking this thread off-topic, I just want to offer a reminder that just because someone's getting assistance doesn't mean they have 'bad' credit or are irresponsible.

It's very possible for someone on assistance of any type to be responsible enough to use credit for rewards (PIF each month), but just on a smaller scale.

Neither of those things were implied. Responses were based on the information that was provided. You could be responsible, not on government assistance, and still have 'bad' credit. Everyone's situation is unique.