Credit cards for self-employed people

If you’re self-employed or a contractor, you can still apply for most credit cards as long as you meet the eligibility requirements.

You usually need to include some extra details and documents, such as your Tax Assessment Notices from the ATO (Australian Taxation Office), your accountant's contact details or a copy of your work contract. This helps the credit card provider confirm your income and work situation as part of the application process.

Which credit cards can I apply for when I'm self-employed?

Usually, you'll be able to apply for a mix of personal and business credit cards. But it depends on the credit card provider and how your business is set up.

Table: Credit card provider details for self-employed applicants

Here, you'll find details of what different providers will ask for when you're applying as someone who is self-employed (whether that's as a sole trader, business owner or partner).

Working as a contractor or sub-contractor?

Banks and credit card providers typically view contractors and sub-contractors as self-employed. As a general guide, aim to provide 2 years of financial information from the ATO or prepared by your accountant. And if you have questions about an application, call the credit card provider so they can talk to you about your situation.

What to think about before applying for a credit card when you're self-employed

If you want to apply for a credit card as a sole trader or someone earning money through an ABN, these factors can help you improve your chances of getting approved.

Credit history

When you apply for a credit card, the bank or credit provider will check your credit history and credit score. This is the case whether you're self-employed or work for an employer and apply for credit in your own name (it can be different for business credit cards that offers joint and several liability).

So, finding out what's listed on your credit file will help you make sure it is accurate. It's also free to get a copy of your credit file and can give you an idea of the types of credit cards you'd be eligible for when you apply.

Eligibility requirements

You'll need to provide recent bank statements, tax returns and your accountant's information to demonstrate your income. Some banks will only consider self-employed applicants if they've been in business for more than a year.

Some credit cards also list a minimum income requirement that you need to meet before you can apply. Even if that's not listed, you should aim to include as much information as possible on the application. If you're unsure if you meet the criteria, get in contact with the card issuer before applying to check if you're eligible.

Personal and business credit cards

If you're a sole trader or fall under the self-employed umbrella, you could choose between a business credit card or a personal card. It depends on how your business is set up and what you want to use the card for.

• If you're planning to use the credit card for everyday spending in and out of business, it makes sense to get a personal credit card. A personal credit card may also be suitable if your business is new, if you don't have an ABN yet or if you're a sole trader with no employees.Personal credit cards can be used to pay for common business expenses such as office supplies and equipment, travel costs and direct debit payments for bills, so some sole traders and small businesses do use them for business spending or a mix of personal and business spending.
• If you only want the card for business spending, have an ABN, registered company or plan to hire employees, a business credit card is another option.These cards can give you access to additional cards for employees, data feeds for accounting software programs such as MYOB, Xero and BAS and other business-focused features. They can also be set up with business liability if you want to keep your accounting completely separate.

Credit card features

What are the main features you want on your credit card? Asking this question will help you narrow down your search.

For example, if you'll use a credit card regularly and pay it off each month, you could reward your spending with a frequent flyer credit card. If you need a card to free up cash flow and plan to carry a balance from month to month, you could consider a card that charges a low interest rate.

Key details to keep in mind

• Banks and other credit card issuers need to meet the government's strict lending requirements, so details including your sources of income and regular expenses must be factored in when you apply for a credit card.
• If you're earning income through an ABN, you can compare a mix of both personal and business credit cards to find one you like.
• It's also worth talking to an accountant about these different options so you can choose a card that fits with your financial circumstances and plans for the future.

Finder survey: How many Australians mix personal and business spending on their credit card?

How to apply for a credit card when you're self-employed

1. Check the card's eligibility requirements. This includes any income requirement, Australian residency requirements and your credit history (which you can also check at this stage). If you need to have an ABN to apply, the details will also be here.
2. Get your documents and details ready. Many providers list what documents they need, including when you're self-employed. As a general guide, aim to have your most recent ATO Tax Assessment Notices, any Business Activity Statements and other proof of income, such as documents or letters from your accountant. You also need to include a valid form of ID, such as your driver's licence or passport.
3. Fill in the application. Usually, this includes a mix of basic personal information and financial details.
4. Wait for an outcome. You'll typically get a response within 60 seconds with details of whether your application has been approved, declined or if more details are needed. As self-employed people often need to provide more details, keep an eye out for details about how to upload or submit supporting documents.

Personal vs business credit card application requirements

While personal credit cards have basic requirements around age, residency status and income, business credit cards typically add the requirement of an active ABN (Australian Business Number).

The amount of time your business has been operating is also a common requirement. For example, you may need to show that your business has been trading for at least 12 months. You'll also need to confirm that you plan to use the account primarily for business spending.

As well as these requirements, some business credit cards only accept applications if your business is registered for GST and meets an annual turnover above the GST threshold of $75,000.

Written by

Amy Bradney-George

Editor

Amy Bradney-George was the senior writer for credit cards at Finder, and editorial lead for Finder Green. She has over 16 years of editorial experience and has been featured in publications including ABC News, Money Magazine and The Sydney Morning Herald. See full bio

Amy's expertise

Amy has written 565 Finder guides across topics including:

• Credit cards
• Frequent flyer
• Credit score
• BNPL
• Money management
• Sustainability