What do you put for income on a student credit card application?

When filling out the income field on a student credit card application, you can put wages from full-time or part-time jobs, investment dividends, and most other funds that are regularly deposited into your bank account. Excess scholarship money that ends up in your bank account typically counts as income, too.

In general, if the money is available to pay a debt you owe, and is not earmarked exclusively for education expenses, it usually counts as income on a credit card application. The exception is borrowed money, including student loans.

Eligible Income on a Student Credit Card Application:

• Wages from full-time or part-time jobs (including work-study)
• Investment dividends
• Residual amount from scholarships and other financial aid (not student loans) after paying tuition and other college expenses.
• Social Security payments and pensions from deceased relatives
• Public assistance payments
• Shared household income (only for students who are 21 or older)
• Money from grants (varies by credit card company)

What to Remember When Applying for a Student Credit Card

1. Student loans don’t count as income.

There’s no law against including student loan disbursements in your total annual income. But student loan money shouldn’t be counted as income on a credit card application because it’s not income—it’s debt. Any money that must be repaid should not be counted as income. Many students use loan money for personal expenses while in school, but that doesn’t mean it’s income.

2. Scholarships and grants may count as income.

Claiming scholarships and grants on a student credit card application may or may not be acceptable, depending on the issuer. For example, Chase reps say it depends on where the awarded money lands first. If the money goes directly to your school to pay for tuition and fees, you can only include whatever amount ultimately lands in your bank account. If the money comes to you first, you can include the entire amount—even if you pay tuition with it.

On the other hand, a Capital One rep said that no matter where scholarship money lands first, it’s up to the student to decide what gets counted in the application. That said, the rep did distinguish that grants do not count as income: “Neither student loans nor grants count as income because they are not considered a stable, continuous source of income."

If you’re in doubt, it’s best to call your credit card company’s customer service line and ask directly.

3. A student’s age impacts income on credit card applications.

Shared income can only be included on a credit card application if you’re at least 21 years old and you have a reasonable expectation of access to the funds. Sharing a bank account is not required in that case.

Students under 21 years old must have independent income or a co-signer to get a credit card.

4. A regular allowance is generally considered income.

There is a bit of a grey area between the CARD Act’s rules and credit card company guidelines for annual income. The law requires credit card companies to consider independent income for applicants under the age of 21. But based on the way some major card issuers seem to interpret it, independent income doesn’t necessarily mean money earned directly by a student for doing a job.

For example, both Chase and Capital One consider as income any type of allowance you might receive from someone else to help pay your bills, as long as it’s regularly deposited into your own bank account.

5. The reported income on a credit card application should be accurate.

Credit card companies can take steps to verify what you put for income on your application. If they have a reason to doubt the number you give them, they can request information from your tax returns or use data from your credit report to create an estimate of your income. Also, it’s against federal law to put false information on a credit card application. The law isn’t commonly prosecuted, but technically, breaking it is punishable by up to 30 years in federal prison per offense.

Having income from at least a part-time job will help a student get a credit card. But many students are unemployed while they’re in school. That puts many college students at a disadvantage when it comes to getting a credit card. If your income is too low, there are a few other options to consider.

Alternative Credit Card Options for Students

• Become an authorized user: If you know someone else who has a credit card (like your parent) you can become an authorized user on their credit account. You may get your own card that’s connected to the cardholder’s account, and any purchases you make will show up on their statement.
• Apply with a co-signer: Asking a parent or other responsible family member to co-sign a credit card application can be a way to make approval more likely. As long as the co-signer has decent credit and income, it boosts the student’s chance for approval. Just note that most banks do not allow co-signers on credit card applications.
• Apply for a secured credit card: Secured credit cards require a security deposit in order to open an account, which serves as the card’s credit limit. Students can start building a positive credit history by using the card to make purchases and paying off their balance by the monthly due date. 

Listing all the income you have access to can help you increase your chances of approval, along with securing a higher credit limit. Whether you qualify for a student credit card or for one of the alternatives above, you should begin using your new card responsibly. This way, you can build a positive credit history and have access to some of the best credit card offers in the future.