Credit cards for the self-employed

If you're a sole trader, self-employed or a freelancer, a credit card can help you deal with those months when you have expenses to pay but not much money coming in.

Check your eligibility Compare credit cards now
Learn more about getting a card How to boost your chances

If you’re self-employed, a credit card can help you better manage your expenses. Use our table below to find the cards you’re eligible for, based on card type.

Table: sorted by representative APR, promoted deals first
1 - 10 of 35
Name Product UKCCF Purchases Annual/monthly fees Representative APR Link Incentive Representative example
M&S Bank Credit Card Purchase Plus Offer Mastercard
0% for 20 months reverting to 24.9%
£0
24.9% APR (variable)
Check eligibility
1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
M&S Bank Credit Card Transfer Plus Offer Mastercard
0% for 3 months reverting to 24.9%
£0
24.9% APR (variable)
Check eligibility
1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
John Lewis Partnership Credit Card
28.94%
£0
28.9% APR (variable)
Check eligibility
Earn 2.5% back as points towards gift vouchers on eligible spend at John Lewis and Waitrose in the first 60 days from account opening. Earn 5 points for every £4 spent on eligible purchases at John Lewis and Waitrose and 1 point for every £4 spent elsewhere. 1 point = 1p (min 500pts)
Representative example: When you spend £1,200 at a purchase rate of 28.94% (variable) p.a., your representative rate is 28.9% APR (variable).
British Airways American Express® Credit Card
30.7%
£0
30.7% APR (variable)
Check eligibility
New Cardmembers collect 5,000 bonus Avios when you spend £2,000 in the first 3 months of your Cardmembership. T&Cs Apply, 18+, subject to status.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a., your representative rate is 30.7% APR (variable).
American Express® Rewards Credit Card
30.7%
£0
30.7% APR (variable)
Check eligibility
Earn 1 Membership Rewards® point for every £1 spent thereafter. Earn up to 90,000 bonus points per year through refer a friend, 4,000 points awarded for every friend approved. 1 point = 0.45p (min 1,000 points) to shop, other rewards have differing conversions.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a., your representative rate is 30.7% APR (variable).
Yonder 'No Fee' Credit Card
32.9%
£0
32.9% APR (variable)
Check eligibility
Representative example: When you spend £1,200 at a purchase rate of 32.9% (variable) p.a., your representative rate is 32.9% APR (variable).
Nectar Credit Card
Finder Award
Nectar Credit Card
30.7%
Year 1 - £0, Year 2 onwards - £30 per annum
37.5% APR (variable)
Check eligibility
New welcome offer: Earn 20,000 bonus Nectar points when you spend £2,000 in your first 3 months. Earn a minimum of 3 Nectar points for virtually every £1 spent at Nectar partners, and 2 Nectar points for virtually every £1 spent elsewhere.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £30 per annum, your representative rate is 37.5% APR (variable).
The Marriott Bonvoy American Express Card
30.7%
£95 per annum
54.5% APR (variable)
Check eligibility
Earn 20,000 bonus Marriott Bonvoy ® points when you spend £3,000 in the first 3 months of Cardmembership. 18+, subject to status. Terms apply.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a. with a fee of £95 per annum, your representative rate is 54.5% APR (variable).
Yonder Credit Card
Finder Award
Yonder Credit Card
29.94%
1 month for £0, £15 per month thereafter
66.7% APR (variable)
Check eligibility
First month free for new members, £15 p/m thereafter. Plus, 10,000 bonus points. Earn 5 points per £1 spent and up to 25 points per £1 at selected partners. Membership includes worldwide travel insurance, no FX fees and use your points towards any flight.
Representative example: When you spend £1,200 at a purchase rate of 29.94% (variable) p.a. with a fee of £15 per month, your representative rate is 66.7% APR (variable).
American Express® Preferred Rewards Gold Credit Card
30.7%
Year 1 - £0, Year 2 onwards - £195 per annum
88.3% APR (variable)
Check eligibility
New Cardmembers earn 20,000 Membership Rewards® points when you spend £3,000 in your first 3 months of Cardmembership. Terms Apply. 18+, subject to status.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a. with a fee of Year 1 - £0, Year 2 onwards - £195 per annum, your representative rate is 88.3% APR (variable).
loading
1 - 10 of 28
Name Product UKCCF Finder Score Annual/monthly fees Initial credit limits Minimum income Representative APR Incentive Link
Zable credit card
3.4
★★★★★
£0
Min. limit £200, max. limit £1,500.
Not specified
48.9%
Representative example: Representative 48.9% APR (variable). Based on assumed borrowing of £1200. Rate of interest 48.9% (variable) annual.
Check eligibility
Yonder 'No Fee' Credit Card
4.0
★★★★★
£0
Min. limit not specified, max. limit not specified.
£25,000
32.9%
Representative example: When you spend £1,200 at a purchase rate of 32.9% (variable) p.a., your representative rate is 32.9% APR (variable).
Check eligibility
118 118 Money Guaranteed Rate Card
3.8
★★★★★
£0
Min. limit £500, max. limit not specified.
£8400
49%
Representative example: When you spend £1,200 at a purchase rate of 49% (variable) p.a., your representative rate is 49% APR (variable).
Check eligibility
Vanquis Bank Credit Builder Credit Card Visa
3.6
★★★★★
£0
Min. limit £500, max. limit £3,000.
Not specified
30.9%
Representative example: When you spend £1,000 at a purchase rate of 30.9% (variable) p.a., your representative rate is 30.9% APR (variable).
Vanquis Bank Balance Transfer Credit Card Visa
3.0
★★★★★
£0
Min. limit £500, max. limit £3,000.
Not specified
33.5%
Representative example: When you spend £1,000 at a purchase rate of 33.5% (variable) p.a., your representative rate is 33.5% APR (variable).
Tesco Bank Foundation Card
3.9
★★★★★
£0
Min. limit £100, max. limit not specified.
£5000
29.9%
5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points.
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
Ocean Credit Card
3.9
★★★★★
£0
Min. limit £200, max. limit £8,000.
Not specified
39.9%
Representative example: When you spend £1,200 at a purchase rate of 39.94% (variable) p.a., your representative rate is 39.9% APR (variable).
thinkmoney credit card
3.9
★★★★★
£0
Min. limit £200, max. limit £1,500.
Not specified
39.9%
Representative example: When you spend £1,200 at a purchase rate of 39.94% (variable) p.a., your representative rate is 39.9% APR (variable).
Capital One Classic Credit Card
3.4
★★★★★
£0
Min. limit £200, max. limit £1,500.
Not specified
34.9%
Representative example: Assuming a credit limit of £1,200 and an interest rate on purchases of 34.94% p.a. variable, you will receive a 34.9% APR representative variable.

Zopa Credit Card Visa
4.3
★★★★★
£0
Min. limit £250, max. limit £1,200.
£10000
34.9%
Representative example: When you spend £1,200 at a purchase rate of 34.9% (variable) p.a., your representative rate is 34.9% APR (variable).
loading
1 - 8 of 8
Name Product UKCCF Finder Score Finder score Purchases Annual/monthly fees Initial credit limits Representative APR Incentive Link
British Airways American Express® Premium Plus Card
4.0
★★★★★
★★★★★
Expert analysis
30.7%
£300 per annum
Min. limit £700, max. limit not specified.
139.2% APR (variable)
New Cardmembers collect 30,000 bonus Avios when you spend £6,000 in the first 3 months of your Cardmembership. T&Cs Apply, 18+, subject to status.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a. with a fee of £300 per annum, your representative rate is 139.2% APR (variable).
Check eligibility
British Airways American Express® Credit Card
4.0
★★★★★
★★★★★
Expert analysis
30.7%
£0
Min. limit £700, max. limit not specified.
30.7% APR (variable)
New Cardmembers collect 5,000 bonus Avios when you spend £2,000 in the first 3 months of your Cardmembership. T&Cs Apply, 18+, subject to status.
Representative example: When you spend £1,200 at a purchase rate of 30.7% (variable) p.a., your representative rate is 30.7% APR (variable).
Check eligibility
Virgin Money Virgin Atlantic Reward Plus Credit Card
4.0
★★★★★
★★★★★
Expert analysis
26.9%
£160 per annum
Min. limit not specified, max. limit not specified.
69.7% APR (variable)
Earn 18,000 bonus points with your first card purchase made within 90 days of account opening. Earn 1.5 Flying Club miles for every £1 spend and 3 miles for every £1 spend with Virgin Atlantic and Virgin Holidays. Spend £10K a year on your card and choose an extra benefit - an upgrade to Premium, or a Companion ticket. Points value varies dependent on reward (min 3000pts)
Representative example: When you spend £1,200 at a purchase rate of 26.9% (variable) p.a. with a fee of £160 per annum, your representative rate is 69.7% APR (variable).
Virgin Money Virgin Atlantic Reward Credit Card
3.9
★★★★★
★★★★★
Expert analysis
26.9%
£0
Min. limit not specified, max. limit not specified.
26.9% APR (variable)
Earn 3,000 bonus points with your first card purchase made within 90 days of account opening. Earn 0.75 Flying Club miles for every £1 spend and 1.5.miles for every £1 spend with Virgin Atlantic or Virgin Holidays. Spend £20K a year on your card and choose an extra benefit - an upgrade to Premium, or a Companion ticket. Points value varies dependent on reward (min 3000pts)
Representative example: When you spend £1,200 at a purchase rate of 26.9% (variable) p.a., your representative rate is 26.9% APR (variable).
Barclaycard Avios Plus Card
4.0
★★★★★
★★★★★
Expert analysis
29.9%
£20 per month
Min. limit £50, max. limit not specified.
80.1% APR (variable)
Earn 25,000 Avios when £3,000 spent on card over the first 3 months of opening. Earn 1.5 Avios for every £1 you spend. Spend £10,000 or more during the year and receive a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking, or 7,000 bonus Avios. Avios value varies dependent on reward (min 1,000pts for flights)
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a. with a fee of £20 per month, your representative rate is 80.1% APR (variable).
Lloyds Bank World Elite Mastercard
4.2
★★★★★
★★★★★
Expert analysis
22.94%
£15 per month
Min. limit not specified, max. limit not specified.
55% APR (variable)
0.5% on £1 to £15000 of yearly spend. 1% after £15001 of yearly spend. Cashback paid Anniversary into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 22.94% (variable) p.a. with a fee of £15 per month, your representative rate is 55% APR (variable).
Halifax World Elite Mastercard
4.2
★★★★★
★★★★★
Expert analysis
22.94%
£15 per month
Min. limit not specified, max. limit not specified.
55% APR (variable)
0.5% on £1 to £15000 of yearly spend. 1% after £15001 of yearly spend. Cashback paid Anniversary into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 22.94% (variable) p.a. with a fee of £15 per month, your representative rate is 55% APR (variable).
Barclaycard Avios Card
4.0
★★★★★
★★★★★
Expert analysis
29.9%
£0
Min. limit £50, max. limit not specified.
29.9% APR (variable)
Earn 5,000 Avios when £1,000 spent on card over the first 3 months of opening. Earn 1 Avios for every £1 you spend. Spend £20,000 or more during the year and receive a British Airways cabin upgrade voucher to use on an Avios Reward Flight booking, or 7,000 bonus Avios. Avios value varies dependent on reward (min 1,000pts for flights)
Representative example: When you spend £1,200 at a purchase rate of 29.9% (variable) p.a., your representative rate is 29.9% APR (variable).
loading
1 - 10 of 30
Name Product UKCCF Finder Score Purchases Balance transfers Annual/monthly fees Representative APR Incentive Link
M&S Bank Credit Card Purchase Plus Offer Mastercard
4.1
★★★★★
0% for 20 months reverting to 24.9%
0% for 12 months
(3.49% fee)
£0
24.9% APR (variable)
1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Check eligibility
HSBC Purchase Plus Credit Card
3.8
★★★★★
0% for 20 months reverting to 24.9%
0% for 17 months
(3.49%, min £5 fee)
£0
24.9% APR (variable)
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable). You might get different interest rates and promotional periods to those shown here, because these depend on your circumstances.
Check eligibility
Santander All in One Credit Card
4.4
★★★★★
0% for 15 months reverting to 23.9%
0% for 15 months
(0% fee)
£3 per month
29.8% APR (variable)
0.5% after £1 of monthly spend. Maximum of £10 cashback paid per month. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a. with a fee of £3 per month, your representative rate is 29.8% APR (variable).
Check eligibility
first direct Gold Credit Card
3.3
★★★★★
0% for 12 months reverting to 24.9%
24.9%
(0% fee)
£0
24.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Check eligibility
John Lewis Partnership Credit Card
3.9
★★★★★
28.94%
28.94%
(5% fee)
£0
28.9% APR (variable)
Earn 2.5% back as points towards gift vouchers on eligible spend at John Lewis and Waitrose in the first 60 days from account opening. Earn 5 points for every £4 spent on eligible purchases at John Lewis and Waitrose and 1 point for every £4 spent elsewhere. 1 point = 1p (min 500pts)
Representative example: When you spend £1,200 at a purchase rate of 28.94% (variable) p.a., your representative rate is 28.9% APR (variable).
Check eligibility
Tesco Bank Clubcard Plus Credit Card Mastercard
4.6
★★★★★
0% for 24 months reverting to 19.94%
21.81%
(3.99% fee)
£7.99 per month
37.7% APR (variable)
5 points per £4 spent (£4 minimum) in Tesco and 1 point per £8 spent (£8 minimum) outside Tesco. Must have available credit to earn points. Points are converted to Tesco vouchers or can be exchanged for Partner rewards to receive money off a variety of restaurants, entertainment or Avios points.
Representative example: When you spend £1,200 at a purchase rate of 19.94% (variable) p.a. with a fee of £7.99 per month, your representative rate is 37.7% APR (variable).
MBNA 0% Transfer and Purchase Credit Card
4.0
★★★★★
0% for 21 months reverting to 24.94%
0% for 21 months
(3.49% fee)
£0
24.9% APR (variable)
Earn up to 15% cashback on purchases through Smart Rewards at popular retailers.
Representative example: When you spend £1,200 at a purchase rate of 24.94% (variable) p.a., your representative rate is 24.9% APR (variable).
Barclaycard Platinum all-rounder Visa
4.2
★★★★★
0% for 21 months reverting to 24.9%
0% for 21 months
(2.99% fee)
£0
24.9% APR (variable)
Buy tickets for up to 3500 selected live events through Barclaycard entertainment and get 5% off tickets per year and exclusive pre-sale tickets on selected festivals with 10% off ticket prices.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Lloyds Bank Platinum 0% Purchase and Balance Transfer Credit Card Mastercard
4.0
★★★★★
0% for 20 months reverting to 24.94%
0% for 18 months
(2.99% fee)
£0
24.9% APR (variable)
Everyday Offers - Earn up to 15% cashback from selected retailers when shopping with a Lloyds Bank credit card.
Representative example: When you spend £1,200 at a purchase rate of 24.94% (variable) p.a., your representative rate is 24.9% APR (variable).
Ulster Bank Purchase & Balance Transfer Credit Card Mastercard
3.7
★★★★★
0% for 19 months reverting to 24.9%
0% for 19 months
(2.99% fee)
£0
24.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
loading
1 - 10 of 48
Name Product UKCCF Finder Score Finder score Balance transfers Balance transfer fee Purchases Annual/monthly fees Representative APR Incentive Link
Santander Everyday No Balance Transfer Fee Credit Card
3.5
★★★★★
★★★★★
Expert analysis
0% for 12 months reverting to 23.9%
0% for 12 months reverting to 3% (min. £5)
0% for 3 months reverting to 23.9%
£0
23.9% APR (variable)
Sign up for Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers.
Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a., your representative rate is 23.9% APR (variable).
Check eligibility
Santander Everyday Long Term Balance Transfer Credit Card
4.3
★★★★★
★★★★★
Expert analysis
0% for 26 months reverting to 23.9%
3% (min. £5)
0% for 3 months reverting to 23.9%
£0
23.9% APR (variable)
Sign up for Santander Boosts to receive cashback, vouchers, offers and prize draws from selected retailers.
Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a., your representative rate is 23.9% APR (variable).
Check eligibility
M&S Bank Credit Card Purchase Plus Offer Mastercard
4.1
★★★★★
★★★★★
Expert analysis
0% for 12 months reverting to 24.9%
3.49% (min. £5)
0% for 20 months reverting to 24.9%
£0
24.9% APR (variable)
1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Check eligibility
HSBC Purchase Plus Credit Card
3.8
★★★★★
★★★★★
Expert analysis
0% for 17 months reverting to 24.9%
3.49%, min £5
0% for 20 months reverting to 24.9%
£0
24.9% APR (variable)
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable). You might get different interest rates and promotional periods to those shown here, because these depend on your circumstances.
Check eligibility
HSBC Balance Transfer Credit Card
4.0
★★★★★
★★★★★
Expert analysis
0% for 29 months reverting to 24.9%
3.49% fee, min £5
0% for 3 months reverting to 24.9%
£0
24.9% APR (variable)
Discounts and exclusive offers for dining experiences, leisure activities and shopping available through HSBC Home and Away.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable). You might get different interest rates and promotional periods to those shown here, because these depend on your circumstances.
Check eligibility
M&S Bank Credit Card Transfer Plus Offer Mastercard
3.9
★★★★★
★★★★★
Expert analysis
0% for 27 months reverting to 24.9%
3.49%, min £5
0% for 3 months reverting to 24.9%
£0
24.9% APR (variable)
1 point per £1 spent with M&S and 1 point per £5 spent elsewhere. Enjoy 55 days interest free, preferential rates plus no cash advance fee when buying M&S travel money with the card.
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Check eligibility
first direct Credit Card
3.8
★★★★★
★★★★★
Expert analysis
0% for 20 months reverting to 24.9%
2.99% (min. £5)
24.9%
£0
24.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 24.9% (variable) p.a., your representative rate is 24.9% APR (variable).
Check eligibility
Santander All in One Credit Card
4.4
★★★★★
★★★★★
Expert analysis
0% for 15 months reverting to 23.9%
0% for 15 months reverting to 3% (min. £5)
0% for 15 months reverting to 23.9%
£3 per month
29.8% APR (variable)
0.5% after £1 of monthly spend. Maximum of £10 cashback paid per month. Cashback paid Monthly into Card Account. Maximum spend for cashback purposes is limited to credit limit.
Representative example: When you spend £1,200 at a purchase rate of 23.9% (variable) p.a. with a fee of £3 per month, your representative rate is 29.8% APR (variable).
Check eligibility
The Co-operative Bank Balance Transfer Credit Card Visa
4.1
★★★★★
★★★★★
Expert analysis
0% for 24 months reverting to 20.6%
3% (minimum £5)
0% for 4 months reverting to 20.6%
£0
20.6% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 20.6% (variable) p.a., your representative rate is 20.6% APR (variable).
TSB Platinum Balance Transfer Card
4.0
★★★★★
★★★★★
Expert analysis
0% for 24 months reverting to 22.95%
2.95% for 3 months reverting to 5%
0% for 3 months reverting to 22.95%
£0
22.9% APR (variable)
Representative example: When you spend £1,200 at a purchase rate of 22.95% (variable) p.a., your representative rate is 22.9% APR (variable).
loading

Can I get a credit card if I’m self-employed?

Yes, and being self-employed in itself won’t necessarily impact your chances of being approved for a credit card. If you’ve been in business for a while, have a regular cashflow and a good credit score, you’ll probably be eligible to apply for most credit cards on the market.

However, working for yourself normally means irregular earnings and a lack of stability – two things lenders usually aren’t a big fan of. That means that your first credit card could be harder to land, especially if you’ve only been working for yourself for a short time.

The good news is, almost all card issuers now offer an eligibility checker, so you can find out your chances of getting approved before you apply (and without hurting your credit score). You may find that you stand a good chance of getting approved for the card(s) that you’re after, but that you’re offered a different rate to the advertised representative APR – which card issuers are only obliged to award to 51% of their customers.

You should do all you can to look improve your credit score and be even more careful with providing accurate information and documents to prove how much money you make (and how much you can realistically afford to borrow).

Credit card jargon explained

  • APR. The annual percentage rate (APR) is designed to be a benchmark for consumers, providing an annual summary of the cost of your card. As well as the interest, the APR also takes into account any compulsory charges – like an account fee (if there is one). However, crucially, providers only have to award the advertised APR to 51% of those who take out the credit card – the other 49% could be offered a different (higher) rate, at the provider’s discretion. That’s why it’s often referred to as the representative APR.
  • Credit card balance. This refers to the amount of credit you have currently used, and need to repay. Most credit cards have a monthly balance cycle, which means you’ll be charged interest if you don’t pay off your balance each month.
  • Interest rate.This is a percentage amount that you’re charged on any outstanding card balance, and can be either a fixed or variable rate.

Is getting a credit card a good idea if I’m self-employed?

Being self-employed requires a series of impressive skills – one of which is a very solid ability to manage and organise your finances, right down to the last penny.

When it comes to business expenses, there’s clearly an advantage to using a dedicated card on a dedicated account – which will make your accounting much easier than if you were to mix your personal and business expenses. And opting for a credit card can boost your spending power and potentially even earn you some rewards along the way.

Image of a person using a laptop alongside the stat: 2 in 5 credit card holders used their card more in lockdown than they did before March 2020.

How can I boost my chances of getting approved for a credit card as a self-employed individual?

Unfortunately, there’s no secret recipe that gets self-employed people (or anyone else, for that matter) approved for a credit card. But there are some good practices you should follow:

  1. Check your credit score and try to improve it. The three main credit reference agencies in the UK – Experian, Equifax and TransUnion – all let you see your credit score for free, although they’ll charge for full credit reports. It’s a good idea to learn your credit situation. Some providers will tell you which kind of credit rating a card requires, so your credit score can help you narrow your search. Also, if your credit score turns out lower than you expected, you can then purchase the full report, check it for mistakes and get in touch with the agency to correct them.
  2. Compare credit cards accordingly. If your credit score isn’t perfect, there’s no point in applying for a card that requires an excellent rating. Be realistic.
  3. Use an eligibility checker. Most credit card issuers offer a service that tells you how likely your application is to be accepted before you actually apply. Use it – it won’t harm your credit score.
  4. Don’t apply for many credit cards in a short period of time. Multiple applications could give lenders the impression you’re in desperate need of credit, plus it could hurt your credit score. If you’ve been refused once, take your time to regroup and do your research before applying for a different card.

This is what you can do in the short term, that is, if you need a credit card right now.

However, being self-employed, it’s also a good idea to plan for the long term. If you don’t necessarily need credit right now, but have no credit history in the UK, keep in mind that you’ll probably need it at some point, maybe in the form of a mortgage for your house or a loan to refurbish your office.

So give yourself an early start, for example, by getting a credit card for people with limited/bad credit. Only use a small portion of your credit limit and pay off your credit card bill in full every month. Most cards on the market won’t charge you a penny of interest provided you clear your balance each month. By the time you actually need money, your good credit score will hopefully allow you to get a competitive card or loan without too many difficulties, even if you’re a freelancer.

Will it cost me more because I’m self-employed?

It might. Don’t forget that the APR (annual percentage rate) you see on lenders’ websites is representative. That means that at least 51% of the people who get that credit card will get that interest rate, not that everyone will get it. You may be offered a higher interest rate if your irregular earnings make you look like a risky lender. Credit limits (that’s the maximum you’ll be able to borrow using the card) are also tailored to the individual. If you’re just starting out, you might be offered a relatively low limit initially.

However, this doesn’t automatically translate to a higher cost. With almost all credit cards, when the bill is paid off in full every month, the interest rate isn’t really an issue, because it won’t be charged. If you do that and also pick a credit card that doesn’t charge an annual fee, the whole thing could come in at no cost to you.

Credit card cost comparison

Credit card limit: £2,000

  • Outstanding balance: £1,000
  • Interest rate: 19.9%
  • Monthly repayment: £25
  • Total interest: £555

Credit card limit: £2,000

  • Outstanding balance: £1,000
  • Interest rate: 29.3%
  • Monthly repayment: £25
  • Total interest: £1,345

My application has been refused. What are the alternatives?

Like we said, don’t panic, and regroup instead of applying for another card straight away. Here are a bunch of alternative products you might be interested in:

  • A credit builder credit card. These have a higher APR, lower credit limits and no annual fees, and are specifically meant to help people build their credit score. Learn more about them and compare deals on our dedicated page.
  • A personal loan. If you need quite a bit of credit and not just for everyday spending, consider a personal loan. Yes, we have a guide to personal loans for the self-employed too.
  • A credit-building tool. Although these won’t help if you need credit immediately, services like LOQBOX allow you to put aside money and improve your credit score at the same time, which can be a good bet in the long term. Our LOQBOX review explains how it all works.

Bottom line

Don’t be fooled into thinking that it’s impossible to get a credit card just because you’re self-employed or a freelancer. On the contrary, if you’ve been your own boss for at least two years, have regular money coming in and a decent credit rating, you may find you can take your pick from what’s out there.

However, if you’ve only just started working for yourself and your credit rating could be better, lenders might be a little more cautious of you.

Check your credit rating and look for ways of improving it. Then make full use of the eligibility checker that many credit card companies will offer. You’ll be able to get instant decisions, which shouldn’t harm your credit rating further.

Make sure you check the lenders eligibility criteria before you apply. Some credit card providers exclude those who are sole traders, freelancers and self-employed.

Frequently asked questions

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
Tom Stelzer's headshot
Written by

Writer

Tom Stelzer is a writer for Finder specialising in personal finance, including loans and credit, as well as small business and business loans. He has previously worked as a freelance writer covering entertainment, culture and football for publications like FourFourTwo and Man of Many. He has a Master of Media Arts and Production and Bachelor of Communications in Journalism from the University of Technology Sydney. See full bio

More guides on Finder

Go to site