Can I get a credit card using alimony as my source of income?

Can I get a credit card using alimony as my source of income?
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#1

I’m going through a divorce now. My ex-husband and I filed Chapter 7 at the same time to get out from under the house. I plan to pay cash for a house in my home state with part of my settlement. Initially, all I’ll have for income is alimony, which will be between $2,000 to $3,000 a month. I’d like to start right away with rebuilding my once near perfect credit (this pains me more than anything else, the loss of the credit I worked so hard to keep for so long). Post-BK, my score is at 620.

Will I be able to start rebuilding fairly soon or do I need to do more?


#2

The short answer is yes, you can use alimony ("maintenance") as a source of income on credit card applications, unless they state otherwise. In general, they want you to report income from all sources.

Most CC apps will give you the option to report alimony , child support, and any other maintenance income. If you do not want to report it, you are not obligated to. But obviously, this helps you qualify for credit.


#3

First, I'm sorry you had to go through the tough transition of divorce and on top of that, Chapter 7. 

You can and should start re-building your credit right away.  The credit card companies decide who they issue cards to - and yes, they can ask if any of your income comes from alimony, child support, etc.  You also are not required to include alimony in your income - although you may wish to in order to strengthen your application.

You may find it frustrating to get a card after the bankruptcy, since they are likely to charge high rates.  I suggest you try to get a low limit credit card at a credit union, use it for staples (things you buy anyway like gas and food) and nothing else and repay the whole balance each month.

After six months of that you may wish to see if the same credit union will give you a small personal loan - again, simply stash the money and repay the loan for a year.  This is another part of your overall score - loans.

I wish you the best on your new path.


#4

Can I get a credit card using alimony as my source of income?

I am sorry for the difficult times you must be going through. 
The short answer is yes you can use alimony as a source of income for getting a credit card.  I suggest that you start with your local bank, where you keep your checking account.  They are likely to grant you a credit card.  Afterwards it helps to maintain a very small balance on your card.  Very small because you never want to let it go out of control.  A balance so you will owe a little interest.  Credit card companies like it when you pay interest.  Obviously always pay on time.
After a few months, ask for an increase in the credit line.


#5

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