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The best Credit Card for self-employed individuals: a detailed guide

Summary: Getting a credit card for self-employed individuals may seem daunting, but the process can be simplified. Here's how you can get started.

10 Mar 2023 by IDFC FIRST Bank

How to Get Credit Card for Self-Employed

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Self-employed individuals face unique obstacles when it comes to obtaining credit cards. As opposed to salaried individuals, self-employed individuals often have irregular incomes and lack company verification, making it difficult for them to obtain a credit card.

However, self-employed individuals need credit cards for managing their expenses just like anyone else. By understanding the application process, the necessary documents, and strategies for building and maintaining a strong credit history, self-employed individuals can overcome specific challenges and access the benefits of credit cards.

Credit Card payment bill options

Different types of Credit Cards and their features

How to apply for a self-employed Credit-Card?

Self-employed individuals need to present proof of their income and financial status when applying for a Credit Card. Here are certain factors to consider:

1. Determine the eligibility criteria and credit score needed

To apply for a self-employed Credit Card you will need to meet the eligibility criteria of the card issuer. Most Credit Card companies require a credit score of 750 or above. In addition, you must have a minimum annual income, a good repayment record, and meet the minimum age requirement in order to qualify for a self-employed Credit Card.

2. Know which documents you need to submit

Depending on the card issuer, you may need to submit relevant financial documents such as past income tax returns, bank statement, and proof of business, in addition to ID proofs such as PAN card and Aadhaar card.

3. Fill out the Credit Card application accurately and completely

The Credit Card application should contain accurate and complete information about your income, your business, and your financial status.

Upon submitting the Credit Card application and financial documentation, the Credit Card issuer will review the application and make a decision. If more information is needed, the credit card provider may contact you for further clarifications or supporting documentation.

Eligibility for self-employed Credit Card

Credit Card eligibility for self-employed individuals may vary depending on the Credit Card issuer's policies and requirements. This may include:

• A credit score of 750 and up

• A minimum annual income

• A longer credit history with a good track record of timely payments.

• Age between 25 to 65.

Documents required

• Passport-sized photos

• Identity proof such as an Aadhaar card, voter's ID or PAN card

• Income proof

• Address proof

• Bank statement

• Proof of business

The better way: secured Credit Cards

Self-employed individuals can choose secured Credit Cards like the IDFC FIRST WOW! Credit Card to overcome common obstacles in getting a Credit Card.

Secured Credit Cards require little to no documentation as they are offered against a deposit, such as a fixed deposit (FD). FD-backed cards, such as the IDFC FIRST WOW! Credit Card, have their credit limit determined based on the value of their FD with the issuing bank. This is ideal for self-employed individuals with limited credit histories or irregular incomes because the FD serves as collateral for the Credit Card.

Additionally, secured credit cards like the IDFC FIRST WOW! Credit Card can offer several benefits to help self-employed individuals manage their monthly expenses easily. These include:

• Lifetime fee Credit Card

• 4X rewards on every spend

• Over 300 merchant offers and discounts at over 1500 restaurants

• Zero forex markup fee on international transactions

• Credit limit up to 100% of the FD value

• Privileges like 1% fuel charge waiver, complimentary roadside assistance, personal accident cover, lost card liability cover and more.

Additionally, secured Credit Cards can assist self-employed individuals in establishing and improving their credit scores. Self-employed individuals can boost their credit score by making regular payments on time and keeping their credit utilization low, which will allow them to obtain more credit in the future.

Conclusion

Overall, secured Credit Cards like the IDFC FIRST WOW! Credit Card can be useful Credit Cards for the self-employed individuals looking to manage their finances and build credit history, even if they do not have a steady income or a stellar credit history. Moreover, customers can benefit from no annual or joining fee, low-interest rates and more. Apply now!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

The features, benefits and offers mentioned in the article are applicable as on the day of publication of this blog and is subject to change without notice. The contents herein are also subject to other product specific terms and conditions and any third party terms and conditions, as applicable. Please refer our website www.idfcfirst.bank.in for latest updates.