Credit Card for Self-Employed – A credit card has become an integral part of our life. We cannot imagine our life without credit cards. There are multiple types of credit cards available in the market. Starting from salaried people to self-employed credit cards are available for everyone. For self-employed and entrepreneurs credit cards are more beneficial as it provides multiple features for running and growing a business. If you are a self-employed person such as a freelancer, independent contractor, or in a profession where your income is dependent on your skills, it is somewhat difficult to get a credit card. Here is a complete guide that will help you in making a selection of the right credit card for self-employed.
How to Apply for a Credit Card? – Self Employed
It is very easy to apply for a credit card for self-employed people. You need to contact your trusted bank or Credit Card Company and apply for the required credit card. You are required to submit the necessary documents to prove your eligibility for the card.
Make sure to go through the features, terms and conditions, and benefits offered before applying for the credit card.
Also Read – 10 Best Popular Business Credit Cards in India
Eligibility
The general eligibility criteria for self-employed to get a credit card are given below.
Credit Score – The Bank will check your credit score before approving your credit card. Your credit score should be 750 or above. You can build a good credit score by managing a good credit history.
Income – The Bank or Credit Card Company will check for your income statement at the time of approving the credit card. They may ask for the last three years’ income tax returns to assess your income. A minimum monthly income of ₹25000 is considered a good income for getting credit card approval.
Credit Utilization Ratio – The credit utilization ratio is the next factor of consideration. The credit utilization ratio means the amount of credit being used with respect to the total credit available. A low credit utilization ratio increases the chance of getting faster credit card approval.
Repayment Record – The bank will also check your repayment and default history. You should maintain healthy repayment records.
Age – You must be above 21 years of age to get a credit card.
Documents required by Self Employed to apply for Credit Card
Self-employed people need to submit the following documents while applying for a credit card.
- Aadhaar Card
- PAN Card
- ID and Business proof
- Income Proof – Latest Income tax returns
- Bank account statements
- Colored photographs
Features to be checked before opting for credit card
Self-employed people must consider the following features while evaluating credit card.
Business Saving – The first feature to look for while selecting a business credit card is cashback or savings offered by the card. You should select a card that offers lucrative business benefits.
Travel rewards – If you are a frequent traveler you should look at the benefits offered by the credit card on travel. Many credit card offers attractive benefits on the travel ticket including cashback and airport travel lounge access.
Reward Points – You should also look at the reward points offered by the credit card along with a method for the redemption of reward points. The credit card should be highly rewarding.
Spend analyzer – To do spend analysis for a business is somewhat challenging. To overcome this challenge you should select a credit card that offers a spend analyzer facility.
Interest-free credit period – The interest-free credit period is the next factor for consideration. The higher the credit period better is the card.
Joining Fee/Annual Fee – The next important point to check is the joining fee/annual fee for the renewal.
Credit card overdue interest rate – The overdue interest rate is the next important factor to consider. The overdue interest rate should be as low as possible.
5 Famous Credit Card for Self-Employed
#1 HDFC Business Regalia Credit Card
HDFC Business Regalia Credit Card is one of the best premium category credit cards suitable for self-employed and businessmen. This card offers a plethora of travel and luxury benefits. The key benefits of the HDFC Business Regalia credit card are given below.
- 5% cashback on key business transactions telecom, electricity, hotel, dining, and taxi.
- Earn 4 reward points on every ₹150 spent.
- Lowest Foreign currency markup fee of 2% on international transactions.
- 50 Days Interest-Free Credit Period
- Travel Concierge Services.
- Free accidental death insurance.
- Earn extra reward spending on crossing the annual spending limit.
Annual Fees – ₹2500 + GST
#2 American Express ICICI Bank Business Essential Card
ICICI Bank Business Essential Card is next on the list of cards for self-employed. This card is issued in association with American Express. This credit card is suitable for business as well as lifestyle needs. Key features of the ICICI Bank Business Essential Card are given below.
- Joining bonus of 1500 payback points from ICICI bank.
- Reward points in terms of payback for transactions such as dining, car rental, airline, etc.
- Convert payback points to air miles that can be used for travel using Jet Airways.
- Save 15% on the dining bills.
- Selected American Express benefits.
Annual Fees – ₹1000 + GST
#3 SBI Platinum Corporate Credit Card
SBI Platinum Corporate Credit card is a globally accepted credit card with multiple benefits including smarter expense management. The privileges that you can get by using this card are given below.
- Globally accepted credit card.
- Analyze the entire organization’s spending pattern using a spend management tool.
- Multilayer spend control facility.
- Fraud-related insurance coverage of 2 Lakh.
- Discount offer on the travel tickets.
Annual Fees – NIL
#4 Axis Bank MY Business Credit Card
Axis Bank MY Business Credit card is one of the best credit cards for businessmen and self-employed people. Attractive interest rates, business saving plans, and airport lounge access are a few benefits of Axis Bank MY Business Credit Card.
- Attractive business saving plan.
- 1 Reward point on every ₹100 Spend.
- 3 Reward points on every ₹200 International Spend.
- Fuel surcharge waiver.
- Free Airport lounge access.
- Cash advance facility.
- Pay Utility bills automatically.
Annual Fees – NIL
#5 Citibank Corporate Credit Card
Citibank corporate credit card offers exclusive benefits for business expenses. Key features and benefits offered by Citibank Corporate Credit card are given below.
- Online tool to manage all expenses.
- Exclusive offers on business products and services including travel, hotel stay, car rental.
- Facility of issuing advance foreign exchange for travel.
- Dining privileges up to 15% saving on dining bills.
- Never expiring reward points with every purchase.
- Dedicated relationship manager.
Note – The above credit cards are suitable for big business as well as self-employed people.
