Credit Cards For Self-Employed People

Compare credit cards suitable for self-employed individuals to find the best fit for your unique financial needs.

By Verified by David Boyd   |   Updated 19 Oct 2024

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Comparing of 7 credit cards for self-employed people

FeaturedApply by 5 November 2024
American Express Platinum Business Card

American Express Platinum Business Card

4.2

Rewards program

Membership Rewards

Points per $1 spent

2.25 points

Sign up bonus

350,000 points

Annual fee

$1,750.00 p.a. ongoing

Details

  • Get 350,000 bonus Membership Rewards points by applying before 5 November 2024, getting approved, and spending $12,000 on your card within the initial 3 months. Exclusive to New American Express Card Members.
  • Earn up to 2.25 pts per $1 spent.
  • Enjoy exclusive Platinum travel, experience, and dining privileges.

Pros & cons

Pros
  • The offer of 350,000 bonus Membership Rewards points when you meet the criteria.
  • Earn up to 2.25 pts per $1 spent and 1 point per $1 spent at the ATO.
  • Access to more than 1,400 lounges globally, including The Centurion® Lounge.
  • Gold status match at Marriott Bonvoy, Hilton Honors, and Premium status at Radisson Hotel Group.
  • Get the Amex Experiences App to access information on Platinum benefits, travel offers, events and recommended merchants.
Cons
  • The annual fee of $1,750 p.a.
  • Since this is a charge card, the balance must be cleared every statement.
  • No balance transfer facility.
Apply by 14 January 2025
American Express Qantas Business Rewards Card

American Express Qantas Business Rewards Card

4.6

Rewards program

Qantas Business Rewards

Points per $1 spent

1.25 points

Sign up bonus

130,000 points

Annual fee

$450.00 p.a. ongoing

Details

  • Get 130,000 bonus Qantas Points with the American Express Qantas Business Rewards Card when applying by 14 January 2025, getting approved, and spending at least $3,000 within 2 months of approval. Exclusive to new American Express Card Members.
  • Earn 2 Qantas Points per $1 spent on Qantas products and services, up to 1.25 points per $1 spent on everyday spend, and 0.5 Qantas Points per $1 spent on government spend, utilities, and insurance.
  • Once a total of 500,000 Qantas Points is earned in a calendar year, the everyday business earn rate will change from 1.25 to 0.75 Qantas Points per $1 spent. *For Card Members who applied for the Card between July 1, 2023, and January 9, 2024, this change will take effect from July 10, 2024.

Pros & cons

Pros
  • Earn 130,000 bonus Qantas Points when you meet the criteria.
  • Two complimentary passes for the Qantas Club lounge every year.
  • A flexible Payment Option is available to spread costs over time for a portion of your balance.
  • Power up your business – Spend with Dell Technologies and get up to $100 credit.
Cons
  • The $450 p.a. annual fee.
  • Balance must be repaid in full each month.
  • No concierge service.
  • Lounge passes are valid for Qantas Club and not the international business lounges.
American Express Business Explorer Credit Card

American Express Business Explorer Credit Card

4.8

Rewards program

Membership Rewards

Points per $1 spent

2 points

Sign up bonus

50,000 points

Annual fee

$149.00 p.a. ongoing

Details

  • Earn 50,000 Bonus Membership Rewards Points when you apply online, are approved, and spend at least $3,000 within 3 months of approval. Exclusive to new American Express Card Members.
  • Benefit from two Centurion Lounge passes per year at Sydney and Melbourne airports.
  • Receive Complimentary Travel Insurance when paying for your return trip with your Card.

Pros & cons

Pros
  • Earn up to 2 points per $1 spent.
  • No fee for up to 99 employee cards.
  • Up to 55 interest-free days.
Cons
  • The annual fee of $149.
  • There is no balance transfer offer for this card.
  • Cash advances are blocked, which might be inconvenient for some.
Bankwest Zero Platinum Mastercard

Bankwest Zero Platinum Mastercard

3.1

On Bankwest's website

Rewards program

N/A

Points per $1 spent

N/A

Sign up bonus

N/A

Annual fee

$0.00 p.a. ongoing

Details

  • Annual fee waived.
  • 0% p.a. interest for 28 months on transferred balances (with a 3% balance transfer fee). Returns to 14.99% p.a. thereafter.
  • No charges for foreign transactions.
  • Offer valid for new customers within a specified timeframe. Additional fees and terms and conditions apply.

Pros & cons

Pros
  • No annual fee to pay — ever.
  • Very long interest-free balance transfer offer.
  • No fees on purchases in a foreign currency.
Cons
  • There is a 3% fee on balance transfers.
  • You can't earn rewards points.
Qantas Premier Platinum Credit Card

Qantas Premier Platinum Credit Card

4.8

Rewards program

Qantas Frequent Flyer

Points per $1 spent

1 point

Sign up bonus

70,000 points

Annual fee

$349.00 for 1st year

Details

  • Get up to 100,000 bonus Qantas Points. Get 70,000 bonus Qantas Points upon spending $3,000 or more on eligible purchases within 3 months from card approval. Plus, an extra 30,000 bonus points if you haven't earned Qantas Points with a credit card in the past 12 months. Terms and Conditions apply.
  • Benefit from 0% on Balance Transfer for 12 months with a 2% Balance Transfer fee. Returns to Cash Advance rate thereafter. No interest-free days are applicable on retail purchases with an outstanding balance transfer.
  • Benefit from the reduced annual fee of $349 p.a. for the initial year. An ongoing annual fee of $399 p.a. is applicable in the 2nd year.

Pros & cons

Pros
  • Earn up to 100,000 bonus Qantas Points when you meet the criteria.
  • 0% p.a. for 12 months on balance transfers.
  • Additional savings with the $349 first-year annual fee.
  • Comes with complimentary travel insurance.
Cons
  • The annual fee increases to $399 p.a. after the initial year.
  • There is a 2% balance transfer fee.
Apply by 30 November 2024
Westpac Low Rate Cashback Credit Card

Westpac Low Rate Cashback Credit Card

4.4

On Westpac's website

Rewards program

N/A

Points per $1 spent

N/A

Sign up bonus

$350.00

Annual fee

$59.00 p.a. ongoing

Details

  • Get up to $350 cashback when you apply online by 30 November 2024. Receive a $50 cashback monthly for spending over $1,000 in the first 7 statement periods.
  • Enjoy a low ongoing 13.74% p.a. interest rate on purchases.
  • Annual fee of $59 p.a. applies.

Pros & cons

Pros
  • Get up to $350 cashback when you meet the criteria.
  • Low 13.74% p.a. interest rate on purchases.
  • 55 days interest-free on purchases.
  • $500 minimum credit limit.
Cons
  • No rewards program although there is a cashback offer.
  • No complimentary travel insurance.
Apply by 5 November 2024
Coles No Annual Fee Mastercard

Coles No Annual Fee Mastercard

4.6

Rewards program

flybuys

Points per $1 spent

0.5 points

Sign up bonus

10,000 points

Annual fee

$0.00 p.a. ongoing

Details

  • Enjoy 10,000 Flybuys bonus points when you spend $3,000 on eligible purchases within 3 months from card approval.
  • No annual fee.
  • Earn 1 Flybuys point per $2 spent on qualifying purchases.

Pros & cons

Pros
  • Earn 10,000 Flybuy points when you meet the criteria.
  • No annual fee ever.
  • Complimentary access to your 24/7 local concierge.
Cons
  • Transactions made in a foreign currency incur a fee.

Self-employed Australians often face unique financial challenges that set them apart from traditional 9-to-5 employees. Separation of business and personal finances is a problem faced by many self-employed gig workers, consultants and contractors.

What to consider for self-employed individuals

  • Variable income: Self-employed individuals may experience fluctuating income levels, necessitating a credit card with flexible payment options.
  • Tax efficiency: Credit cards that offer rewards or benefits tailored to business expenses can help self-employed individuals maximise tax deductions.
  • Expense tracking: Access to detailed transaction records and expense categorisation features can streamline accounting processes for self-employed individuals.
  • Credit building: Building a strong credit profile is essential for self-employed individuals to access financing options and secure favourable terms in the future.

Types of credit cards for self-employed individuals

Credit card providers offer a range of options designed specifically for self-employed people. These cards come with features and benefits catering to entrepreneurs' and freelancers' unique financial needs. Understanding the different types of credit cards available can help the self-employed to make informed decisions based on their own unique requirements.

Business credit cards

  • If you have a registered business, a business credit card offers benefits such as expense tracking tools, business-specific rewards, accounting software integration, and higher credit limits tailored to company expenses.
  • These cards can help separate personal and business finances, simplifying tax reporting and financial management.

Personal credit cards with business benefits

  • Personal credit cards that offer business-related perks, such as rewards for business spending or travel benefits, can be suitable for self-employed individuals with lower transaction volumes who may not qualify for business credit cards.
  • These cards provide a convenient way to access credit while enjoying benefits that align with entrepreneurial pursuits.
  • Personal credit cards can help individuals build their credit profile so they can apply for a business credit card at a later stage in their business.

Eligibility criteria and application process

The eligibility criteria and application process for credit cards tailored to self-employed individuals may vary based on the card provider and individual circumstances. Understanding the requirements and steps involved in applying for a credit card can streamline the process and enhance your chances of approval.

Eligibility criteria

  • Proof of income: Self-employed individuals may need to provide details such as tax returns, profit and loss statements, or business bank statements to verify income.
  • Business registration: Some cards require proof of business registration or an Australian Business Number (ABN) for eligibility.
  • Credit history: A strong credit history demonstrates creditworthiness and may increase the likelihood of approval for credit cards with desirable terms and rewards.

Application process

  • Online application: Many credit card providers offer online application options, allowing self-employed individuals to submit their information and supporting documents at their convenience.
  • Verification process: Card issuers may thoroughly review the applicant's financial documents and credit history to assess suitability for the card.
  • Approval timeline: Once the application is submitted, the approval process timeline may vary, with some applicants receiving instant approval and others requiring additional verification steps.

Benefits of credit cards for self-employed individuals

Credit cards tailored for self-employed individuals offer a range of benefits that can enhance financial management, streamline business operations, and provide valuable perks. Understanding the potential advantages of these cards can help self-employed individuals leverage them effectively to support their entrepreneurial endeavours.

  • Reward programs: Earn rewards, cashback, or points on business and personal expenses, maximising benefits for everyday spending.
  • Expense tracking: Access detailed transaction records and expense categorisation features to monitor spending and simplify accounting processes.
  • Financial flexibility: Enjoy flexible payment options, credit limits, and repayment terms that align with the variable income patterns of self-employed individuals.
  • Travel and insurance benefits: Some credit cards offer travel insurance, purchase protection, and other valuable perks that can benefit self-employed individuals on business trips or purchases.

Tips for maximising credit card benefits as a self-employed individual

Navigating credit card benefits as a self-employed person requires strategic planning and knowledge of available features. By effectively implementing best practices and leveraging credit card benefits, self-employed individuals can optimise their financial management and capitalise on rewards.

  • Separate business and personal expenses: Use dedicated credit cards for business expenses to streamline accounting processes and maximise tax deductions.
  • Monitor spending closely: Regularly review transaction records and set spending limits to stay within budget and avoid unnecessary debt.
  • Redeem rewards wisely: Understand reward programs, your redemption options, and expiration dates of rewards points to maximise the value of earned rewards.
  • Stay informed: Keep abreast of credit card updates, policy changes, and new benefits to make informed decisions about credit card usage.

Help choosing a credit card for self-employed people

Explore tailored credit card options for the self-employed.

  • FAQs

  • Pros & cons

What documents are typically required to apply for a credit card as a self-employed individual?

When applying for a credit card as a self-employed individual, the documents you'll typically need include proof of income, such as tax returns or bank statements showing your earnings. You may also be asked for identification documents, such as a passport or driver's license, and proof of your business, like a business registration or invoices indicating your self-employed status. These requirements help credit card issuers assess your financial stability and creditworthiness.

What are the key differences between business credit cards and personal credit cards with business benefits?

The key differences between business credit cards and personal credit cards with business benefits often lie in their features and intended use. Business credit cards are designed specifically for business expenses and may offer rewards, benefits, and credit limits tailored to business needs, such as higher spending limits or rewards for office supplies and travel. Personal credit cards with business benefits might provide some perks useful for business owners but are generally intended for personal spending. Business credit cards also offer more detailed reporting features to help with tracking and categorising business expenses.

How can self-employed individuals build or improve their credit history with a credit card?

Self-employed individuals can build or improve their credit history with a credit card by making purchases and paying off the balance in full and on time each month. Consistently demonstrating responsible credit behaviour, the most valuable card can positively impact your credit score. Additionally, keeping balances low compared to the credit limit and not opening too many new accounts at once can help improve your credit standing.

Are there specific tax benefits associated with using a credit card for business expenses as a self-employed individual?

Using a credit card for business expenses as a self-employed individual can offer specific tax benefits. These include the ability to easily track and categorise business expenses, which simplifies the process of claiming deductions on your tax return. Some credit card fees and interest charges on business expenses may be tax deductible. A self-employed individual can offer specific tax benefits using a credit card for business expenses, depending on local tax laws. It's important to consult a tax professional to understand which expenses qualify for deductions.

What should self-employed individuals consider when comparing credit card offers for their specific financial needs?

When comparing credit card offers, self-employed individuals should consider several factors tailored to their financial needs. These include the interest rate, annual fees, credit limit, rewards programs, and additional benefits like travel insurance or purchase protection. Evaluating how these features align with your business expenditures and personal spending habits can help you choose a card that offers the most value.

Pros

Business expense management

Credit cards offer self-employed people a convenient way to manage business expenses. Separating personal and business transactions simplifies accounting and tax preparation, providing a clear overview of business expenditures.

Cash flow flexibility

For self-employed professionals, maintaining cash flow can be challenging. Credit cards allow for the deferral of payment until the statement due date, providing temporary relief from immediate cash outlays and aiding in smoother cash flow management.

Rewards and perks

Many credit cards available to the self-employed have rewards programs that can offset business expenses by earning points per dollar spent. Rewards can be in the form of points, cashback, vouchers, etc.

Build credit profile

Responsibly using a credit card can help someone self-employed build a solid credit profile. This is crucial for those who may later seek business loans or lines of credit, as lenders will look at credit history as part of the approval process.

Cons

Higher interest and fees

Credit cards can carry high-interest rates and annual fees, particularly those with extensive rewards programs. If balances are not paid in full each month, the interest charges can quickly negate any rewards earned, leading to increased costs for the business.

Debt accumulation risk

The ease of using credit cards can lead to overspending, particularly during lean business periods. This poses a risk of accumulating debt that can be difficult to pay off, potentially leading to financial strain on the business.

Variable credit limits

Credit limits are based on the applicant's creditworthiness and income. Since self-employed people often have an income that fluctuates from month to month, this can mean lower credit limits that may not cover all business needs.

Eligibility challenges

Securing a credit card can be more challenging for self-employed people due to the perceived risk by lenders. Applicants may need to provide extensive documentation of their income and business viability, which can be a cumbersome process.