If you are self-employed, you may have a difficult time getting a credit card, since you will not be able to prove income as easily as those who have a pay stub. While rules set up by the Credit Card Act make it sometimes difficult to be approved for a credit card, this does not mean that if you are self-employed that you cannot obtain one. Patience is key, however, as you may need to wait until you have tax records of your working as a self-employed person, and you might need to research several cards before you find one that accepts you.
Step 1
Request a copy of your credit report and study it carefully. Good credit history is essential to you if you are self-employed, since you need to prove you are able to make your payments in time. Look for errors in the report and report them to have them cleared. If you have pending accounts or debts, make arrangements with your debtors to have them cleared.
Step 2
Get your tax income reports of the previous two years ready. They will be required as proof of income in place of the salary stub you would get from an employer. Some companies may ask for more than two years to get an average income determined because since self-employed income can vary widely between one year and the next.
Step 3
Get a report from Experian that includes either "Income View" or "Income Insight" reports. These will give you an estimate of your income based on verified income data and details from the Internal Revenue Service (IRS). The reports can be obtained online through Experian's website.
Step 4
Apply for a credit card with a small limit first. These are less likely to verify income or request a lot of additional paperwork. Even if they do, you may just need to show your tax reports. Once you have had the card for six to 12 months, you can then apply for larger cards. Since credit card companies often sell their mailing lists, you might start receiving pre-approved offers in the mail.
Things You'll Need
- Credit report
- Income tax returns from previous two years
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