Securing a Credit Card as a self-employed individual

In today’s world, a Credit Card is almost indispensable for managing your finances – be it your personal or business needs. It allows you to make payments and purchases conveniently. But self-employed individuals may sometimes find it difficult to get one, due to the lack of a steady source of income. However, several Credit Card options are now available for self-employed individuals in India.

Eligibility for self-employed Credit Card

Applying for a Credit Card as a self-employed individual requires one to meet certain criteria that may differ from those of a salaried individual. Hence, ensure you meet the eligibility criteria, for which it is important to be aware of your credit score and credit history and have a good understanding of your financial situation.

Credit score: To be eligible for a Credit Card, self-employed people generally need to have a credit score of 750 or higher, a minimum annual income, a long credit history with a good track record of timely payments, and you must be between the ages of 25 and 65 years.

A good credit score and a long credit history will show that you are a responsible borrower and can be trusted with big loans and high credit limits. This is important for credit card issuers to see that you have the financial means and discipline to pay off the balance on or before the due date.

Income: In addition, you should also have a minimum annual income showing you can manage your finances and pay off any debts you may have. This is especially important for self-employed individuals, who are not subject to the same regulations as employees.

How to apply for a Credit Card

1. Check eligibility criteria: Before applying for a Credit Card, it is important to ensure that you meet all the eligibility criteria. As already mentioned, most Credit Card companies require a credit score of 750 or above, a minimum annual income, a good repayment record, and a minimum age requirement.

2. Prepare the required documents: You may need to show documents such as past income tax returns, bank statements and proof of business, in addition to ID proofs such as PAN card and Aadhaar card.

3. Fill out the application correctly: Ensure that all the information in the credit card application is accurate and complete.

4. Apply: Once you fill the application and submit it, the issuer will review the application and make a decision. They may contact you for further clarifications or supporting documentation if more information is required. The entire process may take anywhere from a few days to a few weeks to be completed.

You can now apply for an Axis Bank Credit Card right from the comfort of your home. Just log in to the website, enter your mobile phone number, income, PAN and other required details. Your card limit will be set based on your income and basis the Bank’s policy. You can also apply for a Credit Card using the Axis Bank mobile app.

Axis Bank offers a range of Credit Cards with varying benefits. Some of these are the Axis Bank MY Zone Credit Card which comes with Free SonyLiv Premium subscription for one year worth Rs 999, discounts on e-commerce platforms such as Swiggy and AIJO and IndianOil Axis Bank Credit Card that offers cashback and discounts on fuel spends at Indian Oil and other outlets. Choose a card based on your requirements and apply seamlessly.

Alternatively, Axis Bank also offers a range of Secured credit cards which are easier to apply for, with better chances of approval. These credit cards are backed by an FD and do not require income proof. You can reach out to the nearest Axis Bank branch to apply for a Secured credit card.

Also Read: [ 6 benefits of using a Credit Card]

Conclusion

It is important to remember that getting approved for a Credit Card as a self-employed individual may require more effort than for someone employed by a business. However, with the right documents and a good credit score, you can easily get approved for a Credit Card.

Disclaimer: This article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of Axis Bank Ltd. and its employees. Axis Bank Ltd. and/or the author 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. Please consult your financial advisor before making any financial decision