Can a Self-Employed Person Get a Credit Card?

07 Jan 2021 // 22 min read // Credit Cards
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There was a time when the world of credit only favoured those with promising jobs and steady sources of income. However, times are changing, and the Indian economy is now welcoming entrepreneurs with open arms. With more and more individuals kick-starting their entrepreneurial journey, even the credit industry has far come out in their support! Hence, if self-employed individuals wish to acquire some capital to help the cause of their business, or hopes for day-to-day credit, they can conveniently Get a Credit Card. Not only can the Credit Cards help resolve their funding issues to a certain extent, but also assist them in building a better credit history, which will further benefit their business. If you happen to be a self-employed individual, here is all that you need to know about getting a Credit Card!

Apply for SBI Credit Card

How to Apply?

All you need to do is get in touch with a trusted bank or a Credit Card company and request them for a Credit Card. In most cases, you will be required to submit certain documents to prove your eligibility.

Eligibility for a Credit Card

More often than not, the eligibility criteria will include the following aspects:

  • You must be 23 years or above in age.
  • You should not have any payment or credit default under your name.
  • You must be able to furnish an address proof, in the form of Ration Card, Landline Telephone Bill, Electricity Bill, Passport, or any other government-issued proof.
  • You must be able to furnish an identification proof such as a PAN Card, your Voting Card, Your Aadhaar Card or any other government-issued proof.
  • You must have a minimum monthly income (Rs. 25,000 in most of the cases) as stipulated by the bank.
  • You should have a good credit history, preferably with a credit score of 750 or above.

Some banks may need you to have savings or at least a current account with them, for you to be eligible for a Credit Card.

Documentation Requirement

To acquire a Credit Card of your choice, you will be required to fill out an application form and submit the same, along with the below-mentioned documents:

  • Address Proof (Any one of the following)

    Ration Card

    Landline Telephone Bill

    Electricity Bill

    Passport

  • Identity Proof (Any one of the following)

    PAN Card

    Voter ID

    Aadhaar Card

  • Proof of Registration of your Business
  • Latest Income Tax Returns
  • Form 16A
  • 2 recent passport-sized photographs

Benefits

Depending on your needs, preferences, and spending behaviour, you can conveniently choose a card that offers you niche benefits.

The most commonly provided benefits of Credit Cards come in the form of:

  • Reward Points
  • Discount on Bill Payments
  • Cashback
  • Holiday/Entertainment Vouchers
  • Frequent Flyer Miles

Aspects That Need Your Attention

As is the case with almost everything in the world, even when choosing the Best Credit Card for Yourself, you must carefully analyse the following aspects:

  • Joining Fee/Annual Fee

    While there are cards available for free, some cards come with an annual fee, which you should choose only if the benefits exceed the amount that you are paying for the card.

  • Card Cancellation Fee

    To discourage customers from closing their cards, some companies charge a high cancellation fee. If possible, you should steer clear of them.

  • Credit Limit

    The higher your credit limit, the lower your Credit Utilisation Ratio, and the higher your credit score. Simple. Isn’t it?

  • Billing Cycle

    The longer the billing cycle, the higher is the interest-free period you enjoy on your spending.

  • Bill Payment Methods

    In today’s time of convenience, it will be in your best interest if the Credit Card provider offers more than just a couple of payment methods. These should primarily include, net banking, and electronic transfers apart from others.

  • Late Payment Fees

    Since you will already be paying additional interest on delayed payments, make sure you pick a card that doesn’t charge any late fee, or if it does, the fee is minimal.

  • 24*7 Customer Support

    You should only choose a Credit Card provider which offers round the clock customer service.

Now that you know all about a Credit Card for a Self-Employed Person, we are sure you will be able to choose the card that best suits your needs, effortlessly!

Also Read: Have You Witnessed Credit Card Skimming? Here’s What to Do Next

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