The Freelancer and Credit Card Problem
The war between banks and freelancers over credit cards is one that has been going on for quite some time now. Banks don’t allow freelancers to get credit cards as freelancers do not have a stable income, some months they earn a fair amount of income, others they barely scrape by and yet other months can be even worse. Although some situations severely call for a freelancer to obtain a credit card and thus I am here today to give you freelancers’ tips on how to obtain credit cards:
The Bank wants you to have a stable Income? Prove you do!
Now of course this tip cannot apply to just anyone, a lot of free lancers get a very wide range of jobs from multiple companies. They don’t always have one company that depends on them for their content but there are those freelancers who are constantly getting requests from the same company.
If this is so you can use them to vouch for yourself when asking the bank for a credit card, if it turns out you do get a stable amount of money from this company or companies every month the Bank will be more convinced to hand you a credit card!
Another way of doing this can also be by showing the bank your cheques from your previous clients or by proving that you have, in fact, been in business for quite some time and thus know that you can handle a credit card.
Invest in Mutual Funds
A collateral is like a security deposit for the bank, if you we’re to keep a certain amount of money with them they would allow you to have a credit card and if you went into debt and couldn’t pay it off then they would use that money to pay off your debt. They wouldn’t be worried about you being unable to pay it off so they wouldn’t have any reason to not give you a credit card.
Putting money in an account
This is perhaps the simplest way for a freelancer to acquire a credit card, you would have to put money in an account with the bank and then you could a credit card against the money in that account.
These are a few ways through which freelancers can acquire credit cards, the main problem between banks and freelancers is that banks are afraid that freelancers cannot handle credit cards as they do not have a stable source of income and may go into debt. Proving that you can in fact handle a credit card can help your case and once you do that the bank should be more than happy to give you your own credit card.