The proper use of credit cards has interesting advantages for young people. In addition to enjoying about 20 days of credit at zero cost (if handled well), having a plastic helps to forge a credit history and score. If it is possible to build them in a healthy way, later on, it would be easier to access greater financing and soft conditions.
Although having at least 6 months of work and an employment letter is a common requirement to access this product, today, many young people face serious difficulties in accessing the formal labor market. According to the study Young Dominicans: Those Unknowns”, by Business Action for Education (Educa), 29% of young people between the ages of 15 and 24 are unemployed.
However, not all of the unemployed population lack regular income. In these cases, it is possible to access financial products such as credit cards. How can someone with this profile acquire it? In this post we tell you.
Requirements and options
In general, anyone over the age of 18 can access a credit card even if they are not employed. It is a possibility that has always been open, given that many people receive income through informal businesses or remittances.
In this case, what is relevant is to demonstrate to the financial intermediation entity that there is a fixed income on a regular basis. Usually, the bank will require the statement of the account for which the income corresponding to the last three months is received.
Some financial institutions have a special product for people who find it difficult to prove the source of their income, such as someone who receives cash monthly but not through a bank account.
Associations and banks offer these profiles savings cards as collateral. How do they work? Let's take the example of entity X, which requires the opening of a savings account of at least RD$5,000 or a certificate worth RD$10,000. Having this guarantee deposit, the interested party will be able to access a card for 90% of the amount saved in the account or invested in the certificate.
Another way to access plastic money is by having a duplicate of a main credit card from a close relative (father, mother, uncle, etc.). The disadvantage is that, since you do not have the ownership of the card, the possession of this plastic does not contribute to building a credit history or a score. In fact, the responsibility for the payment of the consumptions lies with the holder of the main card.
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