Credit cards for the self employed

There are no dedicated credit cards for the self-employed – if you need a card, you simply apply for one and say you're self-employed in the relevant part of your application.

However, it can be harder to get approval for a credit card if you’re a freelancer or run your own business. This is because, without the security of a salary or fixed regular income, you may be considered a higher risk for a lender.

No, there aren’t different cards based on whether you’re a sole trader, part of a partnership, or running a limited company. But if you’re looking for a card to use exclusively for work expenses, you might want to think about a business credit card.

These are designed for business use and usually come with higher credit limits as they’re based on your business income, not just your take-home pay.

Similar to personal credit cards, there are different types of business credit cards depending on your needs. For example, you could look for one offering:

• 0% on purchases  

• Cashback on spending   

• Balance transfers, where you move debt from one card to another  

• Overseas use, which may be useful if you travel abroad for business  

• Credit builder cards, which can help build your credit score if used responsibly.  

If you’re self-employed, many providers will consider how steady your income is, while others will be interested in your credit history.

9% of credit card applicants are self-employed according to our data, so it’s a common situation for lenders to consider¹.

To see which self-employed credit cards you’re likely to be accepted for, use our credit card eligibility checker. It involves a soft search on your credit file, which won’t be visible to lenders and won’t have any impact on your credit score.

If you only became self-employed recently, you may find it more difficult to get accepted for a card.

This is because:

• Lenders don’t have much income history to look at – without a track record, it’s difficult for a provider to predict how much you’ll earn or how reliable your take-home pay will be 

• You may have taken out loans to kickstart your business – if you’re already managing a lot of debt, providers may be more cautious about lending to you.

If you can wait a little longer and grow your business track record, it could boost your chances of getting a credit card. But if you need a card now, use our eligibility checker to see which cards you’re likely to be accepted for before applying.

Rejected applications may have a negative impact on your credit file. Your application might be declined if:

• Your outstanding credit balance is too high

• You have an unstable work history

• Your annual income is too low

• You have a limited credit history

• There are late payment charges on your credit file

• You’ve applied for credit too many times in a short period of time.

If a self-employed credit card doesn’t fit your needs, you might consider looking at other options such as:

• Personal or business loans 

• An overdraft 

• A business credit card 

• Using your savings

You probably won’t have to tell your credit card provider if you become self-employed. But if your employment status changes and you then apply for a new card or ask to increase your credit limit at a later stage, you may be asked about your employment status.

Compare the Market Limited acts as a credit broker, not a lender. To apply you must be a UK resident and aged 18 or over. Credit is subject to status and eligibility.