Empower Your Finances: A Comprehensive Guide to Securing a Credit Card for the Self-Employed

Posted on Monday, April 22nd, 2024 | By IndusInd Bank

Securing a credit card can pose several hurdles for self-employed customers owing to their distinct nature of work, irregular payments, and financial risks, among other factors. Such problems underscore the need for tailored approaches to credit card applications for the self-employed. Self-employed individuals have various options at their disposal to get approved for a credit card. Here’s how they work:

Credit Card Application for Self-Employed: Requirements Decoded

For you to successfully convert your credit card application request as a self-employed professional, you must keep the following documents ready when you apply for a credit card:

How Much Do You Earn?

Gather your Income Tax Returns ITR filings, profit and loss statements, and bank statements. A consultant should be able to evaluate whether your income can make the cut or not. These documents help the application reviewer gauge whether or not you are capable of repaying credit dues.

Are You a Saver?

If you have good savings, it tells the bank that you can responsibly handle money, thereby suggesting to the bank that you possess the capability to make timely payments and mitigate perceived risk for credit card providers.

Credit History

A robust credit score is pivotal for getting approved for a credit card. Banks and other financial institutions assess your credit history. They consider factors such as punctual payments and a low debt-to-income ratio, among others.

Proper Documentation in Place

Keep identity-related documents, such as an Aadhaar Card, Driving Licence, or any other government-issued identification, handy before you apply for a credit card online.

Research Before You Splurge

As a self-employed professional, thorough research is imperative before you apply for a credit card. The primary reason for making an informed decision is that if your credit card application is rejected, it may adversely affect your credit score.

Also Read: Who Is Eligible For Applying For a Credit Card?

A Sustainable Plan: Credit Card Features and Benefits to Look Out For

When selecting a credit card for you as a self-employed professional, please keep in mind the following pointers:

Explore Your Options

Apart from allowing individuals to spend on credit, credit cards offer loads of other perks. Consider reward programmes, cashback offers, travel benefits, and interest rates on credit cards of different banks before you zero in on one.

Annual Fee Structure

It is common knowledge that credit cards come with an annual fee. Evaluate the benefits vis-a-vis the card’s cost to determine if signing up for the service will be worth it. You can also consider choosing credit cards that do not charge an annual fee.

Rate Of Interest and Grace Period

Compare interest rates across different credit cards and ascertain the provided grace period that comes with the card of your choice.

Additional Fees and Charges

Familiarise yourself with any supplementary charges tied to the credit card. These may include late payment, over-limit, or foreign transaction fees. Opt for credit cards boasting reasonable fee structures aligned with your spending habits.

Customer Support and Service

Reflect on the quality of customer support and service extended by the credit card issuer and check reviews online to see if the financial institution can take care of your banking needs in case of an emergency and otherwise.

Eligibility and Approval Process

Review the credit card eligibility criteria for self-employed professionals and the approval process for your preferred issuer. Keep the requisite documents ready before you apply for a credit card online and even through bank executives.

Also Read: What Are Credit Card EMIs & How They Work

Conclusion

As mentioned earlier, getting approved for a credit card as a self-employed professional may seem tough. However, if you follow the procedure to the T and additionally do your homework on the side, attaining the best credit card for self-employed professionals that aligns with your needs does not have to be a problem.

Apply for a credit card for self-employed individuals today!

Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any financial decisions based on the contents and information.