Credit cards for self-employed people
You can get a credit card as a sole trader, contractor or self-employed business owner. You need to provide between 1 and 2 years' worth of recent tax returns or notices of assessment.
Key takeaways
- If you're self-employed you can apply for most credit cards as long as you provide documents like your Tax Assessment Notices from the ATO and business bank statements.
- Most banks and credit card companies need to see at least 2 years' worth of financial information for self-employed applicants.
- You could qualify for a normal credit card or a business credit card. If you already have an ABN and don't want to mix personal finances with your job, a business credit card might be better.
Which credit cards can I apply for when I'm self-employed?
Most credit card companies will give self-employed applicants a credit card. But the specific requirements are a little different for each one.
Or you can start comparing credit cards right now.
| Provider | The documents you’ll need |
|---|---|
| American Express | Your accountant’s details are required. |
| ANZ | Your most recent personal tax return and ATO Notice of Assessment (it must be less than 22.5 months old). |
| Bank Australia | Provide your most recent tax return (both personal & business) along with the corresponding ATO official notice of assessments. |
| Bankwest | Two of your most recent Notices of Assessment from the Australian Taxation Office showing your earnings for these financial years. You may also need to provide copies of your taxation and financial reports from your accountant. These must be from within 18 months of the application submission date. |
| Bank of Melbourne | You will need to provide:
|
| BankSA | You will need to provide:
|
| Bank of Queensland | You’ll need to supply any one of the following options:
|
| Bendigo Bank | You'll need to provide your accountant's name and contact details as well as details of your income, assets and liabilities. This is where your most recent tax return statement would come in handy. |
| Citi | One of the following options are required:
|
| Coles | You'll need to provide two most recent Notices of Assessment. If you haven’t got that, then you’ll need to provide a tax return that shows your individual taxable income both audited and prepared by your accountant. Otherwise, you may call 1300 265 727 for further options |
| Commonwealth Bank | You must provide information of at least 12 months of your income. |
| Latitude Financial Services | Notice of Assessment for the previous financial year is required. If you haven’t got that, then the next document is a tax return, which shows your individual taxable income prepared by your accountant. If you’re not self-employed for a full year, you’ll need a letter from your accountant detailing the personal taxable income for the time you’ve been self-employed. |
| HSBC | You’ll be required to provide your most recent individual Notice of Assessment and HSBC may ask for further documentation if required. |
| ME Bank | You will need to provide:
|
| NAB |
Make sure all documents show both your full name and your agency/ institutions name & ABN. |
| St.George | You must provide a recent tax information and a Notice of Assessment. If you’ve been self-employed for less than a year, you won’t be able to apply. |
| Suncorp | If you’re self-employed, you need to provide a recent tax statement or payslip. If you’ve been self-employed for less than 2 years, you’ll also need to provide information about your income before then. You’ll also need to provide your accountant’s name and contact details. |
| Virgin Money | As Virgin Money credit cards are issued by Citi, they follow the same rules as the bank.
|
| Westpac | Most recent Notice of Assessment that must be less than 18 months old and last 2 months of business bank statements. |
Finder survey: How many Australians mix personal and business spending on their credit card?
| Response | |
|---|---|
| No | 38.17% |
| I don't make business-related purchases | 31.62% |
| Yes | 16.59% |
| I don't have a credit card | 13.62% |
Source: Finder survey by Pure Profile of 1145 Australians, December 2023
How to apply for a credit card when you're self-employed
- 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.
- Get your documents and details ready. 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.
- Fill in the application. Usually, this includes a mix of basic personal information and financial details.
- 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.
How to improve your chance of approval as a self-employed credit card applicant
- 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.
- When you apply for a credit card, the bank or credit provider will check your credit score. Finding out what's listed on your credit file will help you make sure it is accurate.
Can you use a personal credit card for a business?
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.
- 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.
- 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. Many business cards also require a minimum business turnover of $75,000 a year.
Our expert says: Business or personal credit card?
"If you're self-employed and haven't been running a business for long, a regular credit card might be your only option. And that will work fine, for a while. But if your business (and your expenses) grows, a business credit card can be pretty handy. It gives you more control and oversight of your business spending, you can add staff as additional cardholders and set limits for them. Your accountant will thank you come tax time too. "
What kind of credit card should you get?
If you simply want a flexible, low-cost way to cover small ongoing business expenses and plan to carry a balance from month to month, you could consider a card that charges a low interest rate.
But if you want to earn points on your business spending and get travel perks, a more expensive frequent flyer credit card could end up being worthwhile.
Tip: If you want to earn points for payments to the ATO, there are more business credit cards that offer rewards for this type of payment.
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I have just started as a contractor to a finance broking business so only generated approx $15k in commissions so far. I’m after a card i can get to put my business expenses like software subscriptions etc through? What can i apply for given i dont have 12 mths ABN yet etc?
Hi Jarrad,
Unfortunately, it’s typically more difficult for people to get approved for a credit card when they have recently started new employment (including contractor work). It would be ideal to wait a bit longer to build up payment history, but it is possible that providing enough supporting documentation (such as ATO tax assessment notices for the past few years) would be sufficient if you met the eligibility requirements for a card.
With less than 12 months of details for our ABN, you may want to consider a personal credit card with a low income requirement. Another option is to consider an expense management card which is designed to help businesses manage their costs – some offer a line of credit that may be suitable. I hope this helps.
I just wanted to ask, what if im a self employed i have a business buy it does not registered to the b.i.r and i don’t have any bank account. . My business earn 45,000 monthly. . Am i still eligible to apply for a credit card ? Thanks in advance
Hi Camille,
Thanks for your question.
Kindly note that our guide above is applicable only to credit cards that are available to Australian residents.
The credit card brands in your country might have a different set of eligibility criteria when it comes to accepting credit card applications from self-employed. Generally, when you apply for a credit card, you’ll be required to show proof of your income, which could include a bank statement or income tax return.
Cheers,
Anndy