Are you a self-employed man or woman who is looking to get a credit score card? Besides using a internet site like GET.com to help you compare cards without difficulty at a glance and choose the right credit card for yourself, there are two essential things you need to hold in idea ought to you desire to own a credit card. While software for cards can be finished online or at the bank branches simply like the way ordinary salaried personnel would, the type of archives and records required of self-employed individuals range slightly.
2 Important Things Self-Employed Singaporeans Must Know If They Want To Own A Credit Card
1. You Need To Declare Your Income Diligently
As a self-employed person, it is your accountability to ensure that you make obligatory Medisave contributions to your CPF account; have perfect data and money owed of your business; conscientiously complete and submit your profits tax returns and pay the quantity that is due; and if need be, register with IRAS as a GST-registered individual.
Not solely is hiding one's earnings an act against the law, your assertion of earnings will go a lengthy way in assisting you impenetrable a credit card as a self-employed person. So, continually play it protected and declare your profits committedly no count number what because your tax varieties feature as an imperative proof of income. Whether you are a commercial enterprise owner, business partner or a full-time freelancer, you have the duty to declare your earnings.
2. Make Sure You Have The Required Income Documents
Depending on the financial institution you would be applying for your credit card from, the profits files and applicable information required of you can vary. Be positive to give yourself adequate time to get your files sorted out so you'll have them on hand when you are making use of for the card online or at the bank branch.
Say, you are a Singaporean or PR keen on getting a Standard Chartered credit card. In addition to producing a reproduction of your NRIC/passport, self-employed folks are required to produce a reproduction of their Income Tax Notice of Assessment for the previous two years. You must be in business for at least two years earlier than you can try applying for a card from Standard Chartered.
Self-employed Singaporeans who are fascinated in UOB credit score cards need to produce their NRIC, latest billing proof as per their nearby domestic tackle if it's now not the equal as the tackle on their NRIC, as well as their state-of-the-art Income Tax Notice of Assessment.
On the other hand, these considering to observe for POSB credit cards want to publish their brand new two years' Income Tax Notice of Assessments on pinnacle of the usual NRIC/passport requirement. This is similar to the requirement noted by way of Standard Chartered.
And if you are considering American Express credit cards, you will want to supply further facts such as your organisation name, kind of industry, enterprise registration number, annual income, and length of employment as considered in the screenshot below.
Am I eligible to apply for a credit card if I am self-employed?
If you’re self-employed, you can still apply for most credit cards, as long as you meet the eligibility requirements. However, you may be required to submit some different documents than you would if you were, say, retired or employed by a company. Here’s a summary of the providers who accept self-employed applicants and the documents you’ll need to provide to increase your chances of approval.
WARNING! Things to avoid if you will apply
Applying without researching
If you’re self-employed, you’ll need to grant additional archives and meet different eligibility necessities to receive approval. Rejected functions will have a terrible affect on your credit file, so you prefer to conduct the essential research to enhance your chances of approval in the first place.
If you’re undecided of what you need to provide, see the applicable phrases and stipulations or contact the issuer to verify the necessities you’ll need to meet.
If you do your research until now to make sure you’ve met the eligibility necessities and have the integral documents, you’ll expand your possibilities of approval.
Applying for quite a few cards in a brief time period
If you’ve utilized for a card and been rejected, don’t follow for some other one straight away, as this will put a dent in your credit file. Instead, do some lookup to set up why you weren’t accepted. If you didn’t have all of the right documents, make sure you have all of the most current variations of them when you apply once more in a few months. If you were rejected due to the fact of your credit history, you can start improving your credit file to amplify your probabilities of approval subsequent time. Learn how to enhance your credit rating here.
If you’re self-employed, you have to have no bother making use of for a credit card as lengthy as you put together beforehand. If you comply with this guide, ensure you meet the eligibility requirements and organise the critical documents, you have no bother applying for a credit card.
Irregular Employment, Low Income and Credit Cards
For those who lack steady employment, obtaining a credit card will be somewhat more difficult than for others. However, whether you’re unemployed, self-employed or on a zero-hour contract, there are plenty of credit options available for those without regular employment. The same applies for those with a poor credit rating. In both cases you’ll have to shop around but you will be able to find a credit card that is appropriate for your situation.
A credit building card is a type of credit card specifically designed for people in this situation. Credit building cards will typically come with a low limit that is comfortably within your means. The idea is that you can borrow and pay off your credit with ease, thereby steadily improving your credit score by demonstrating your ability to pay off debts.