Can I apply if I've been self-employed for a short time?

Yes, you can apply even if you’ve been self-employed for only a short time, but you're going to find it difficult to prove a sustained self-employment income. If your self-employment is a side gig and you're still employed elsewhere, you should be okay. Otherwise, you may want to consider an alternative payment or financing option – debit cards, prepaid cards, bank loans and BNPL – until you can prove at least two years of self-employment income.

Can I use a personal credit card for business expenses?

Yes, it is possible to use it for business transactions. In fact, using your personal card more often for any kind of expense (such as office supplies) will unlock more rewards points and benefits if you have a rewards card. But it's best to take some sensible precautions. Business expenses can run at a higher level than personal ones, and maxing out your personal credit card could see incurring high-interest debt and also lowering your personal credit score because you've increased your credit utilization ratio. You'll also struggle at tax time when it comes to distinguishing between business and personal expenses. You might want to consider using a business credit card instead, to keep your business expenses separate, and possibly take advantage of higher credit limits often available to business users.

Can you get a credit card if you have no income?

If you don’t have enough self-employment income to qualify for a credit card on your own, there are other options: Get a co-signer. Ask a family member or friend with a good income and reasonable credit score to co-sign your application. They will be accepting legal responsibility for making the payments on your account if you fail to do so. Become an authorized user. You may be able to become an authorized user on someone else's credit card account. You'll get a card with your name on it, but the account owner is responsible for paying the account balance, including any purchases you make yourself. It means that you'll need to work out an arrangement for repaying the account owner. Put down a deposit for a secured credit card. Secured credit cards need an upfront cash deposit as security, usually equal to the credit limit you are looking for. The deposit protects the issuer because they could access it if you fail to make your payments. The deposit is refundable if you close your account or upgrade to a normal, unsecured card after demonstrating your ability to make repayments for a reasonable length of time.

How do I apply for a self-employed credit card?

Applications for credit cards for the self-employed are much the same as applications for any other kind of credit card. To apply, make sure you have the following to hand: Proof of identity, age, citizenship or residency Proof of income Details of savings, if any You can then fill out an application online, as this is the fastest way to get a response. You can also apply by phone or mail, but these options will take longer compared to doing it online.

What income do I need for a credit card?

When you apply for a credit card, your income is an important eligibility requirement that the provider will use to assess your ability to repay your monthly balance. The minimum income requirement generally starts at $12,000 a year (before tax), which means there are low income credit card options out there.

What proof of income will I need to provide?

You will need to show one or more of the following, usually going back two years: Pay stubs Tax returns Tax assessments IRS proof of income statement Profit and Loss statements for your business, preferably verified by your accountant

Will the bank need to contact my accountant?

Not unless you supply your accountant's contact details and give them permission, but if you have an accountant who can verify your income, you’ll have a much easier time when applying for a card.

Compare Credit Cards for Self-Employed People in the USA

Credit cards for self-employed people

Compare credit card offers for self-employed business owners. Use a card to earn rewards and improve your cash flow.

Updated Aug. 5, 2022 |

Running your own business can be a rewarding experience, and many self-employed professionals have turned to using credit cards to maximize their benefit from business purchases. Credit cards for self-employed people have many benefits, such as earning bonus points on your most common business expenses, which makes it quicker to redeem points for travel or cashback rewards. In this article, we’ll explore everything you need to know about getting a credit card when you're self-employed, including who they’re for, who can apply, what you need to apply, and more.

Who can apply?

While there are many credit cards suitable for self-employed people, there are none specifically designed for the self-employed, so the same eligibility criteria applying to most credit cards also apply here. You need to have reached the age of majority in your province or territory, meet any requirements regarding citizenship or residency, and be able to prove your income from self-employment.

If you're running your business as a company and paying yourself a wage, you can supply pay stubs as proof of income, just like anyone else. But it's less straightforward if you are the sole proprietor of an unincorporated business. You may have to provide tax returns or assessments, or a proof of income statement from the IRS, accompanied by the latest financial statements for the business.

What will I need to apply?

You will need:

Proof of identity (e.g. driver's license or passport)
Citizenship status (via birth or citizenship certificate) or residency entitlement (via a visa)
Residential address, and other contact details
Proof of income. As a self-employed individual, you will need to show documents that verify that you have had an income from this source. These can be pay stubs (if you run your business as a company and pay yourself a wage), tax returns, tax assessments, IRS proof of income statement, or the financial statements (Profit and Loss statements) of your business.
Savings. Showing lenders that you have the ability to save money lets them know that you won’t be a high risk for missing payments. But having savings is not essential.
Reasonable credit score. This is what lenders evaluate when deciding whether or not you’ll be approved for a credit card. So the better your credit history, the higher your chances will be of getting approved.

Credit card alternatives

If you don't want to use a credit card, or are finding it difficult to get approved because you've only just begun self-employment, you do have other options:

Debit card. Debit cards are the most popular alternatives to use, as they only let you spend what you have. These are linked directly to your bank account, so you never have to worry about being in debt. Conversely, you are limited to the capital in your account.
Prepaid card. This works in a similar way to a debit card, but you pre-load it with cash instead of linking it to your bank account. They can be used in the same way to buy goods and services both online and in-store.
Personal loan or business loan. Taking out a loan could be cheaper, especially if you can get a good interest rate. However, you need to be sure that you can afford repayments, as well as be aware of late fees and possible early loan discharge fees.
Buy Now Pay Later services. Many companies offer Buy Now Pay Later plans for various purchases such as appliances, furniture, electronics, fashion and services. With this type of plan, you can purchase something you need and then spread the repayment over several interest-free installments. Late payment fees or interest charges may apply if you miss the payment due dates.