Can You Have a Credit Card on SSI?

Individuals receiving Supplemental Security Income (SSI) can own and use credit cards. However, understanding how credit card activity interacts with SSI benefits is important to avoid unintended consequences. The Social Security Administration (SSA) has guidelines regarding income and resources that impact SSI eligibility.

SSI Eligibility Rules and Credit Card Ownership

Supplemental Security Income is a needs-based program providing financial assistance to aged, blind, and disabled individuals with limited income and resources. For 2025, the maximum federal SSI payment is $967 per month for an individual and $1,450 per month for a couple. To qualify, an individual’s countable resources must not exceed $2,000, while a couple’s limit is $3,000. Resources include cash, bank accounts, stocks, and bonds, though a primary residence and one vehicle are excluded.

Possessing a credit card or having an available credit limit does not count as income or a countable resource for SSI purposes. A credit card represents a line of credit or a loan, not an asset convertible to cash for support. The Social Security Administration defines resources as cash and any other personal or real property an individual owns and can convert to cash for support. Since a credit card’s available balance must be repaid, it does not fit this definition.

Specific Credit Card Transactions and SSI Benefits

While owning a credit card does not affect SSI eligibility, certain transactions can impact benefits. Any cash or in-kind item received in a given month that can be used for food or shelter is considered income for that month. If that item is held until the following month, it becomes a countable resource.

Cash advances from a credit card are considered a loan. The proceeds of a bona fide loan are not counted as income due to the obligation to repay. However, if cash from an advance is not spent within the month received and remains in a bank account or as cash, it becomes a countable resource in the subsequent month. Exceeding the resource limit of $2,000 for an individual or $3,000 for a couple due to retained cash could lead to a temporary loss of SSI eligibility.

Purchasing gift cards or prepaid debit cards with a credit card can also affect benefits. If these cards can be used for food or shelter, their value is treated as unearned income in the month received. Any unspent balance remaining at the beginning of the next month is counted as a resource. Additionally, using a credit card to purchase a significant asset, such as a second vehicle or certain investments, could cause total countable resources to exceed established limits, impacting SSI eligibility.

Applying for a Credit Card While Receiving SSI

Obtaining a credit card while receiving SSI involves the same application process as for any other applicant. Credit card companies assess an individual’s ability to repay debt, considering factors like income, credit history, and credit scores. While SSI benefits are a form of income, some lenders may not view them as consistently as earned wages when evaluating creditworthiness, as SSI is intended for basic living expenses.

Individuals receiving SSI may find it easier to qualify for secured credit cards. These cards require a cash deposit, which serves as the credit limit, reducing lender risk. Consistent, on-time payments on a secured card can help build a positive credit history and improve a credit score. Maintaining a low credit utilization rate, ideally below 30% of available credit, also contributes positively to a credit score.