Credit cards for the self employed

jannarama1

I've currently got excellent credit rating (i've done an experian check) but I have recently become self employed. If I now apply for a credit card with my status as self employed will it destroy my rating as my friend has just told me it will?

jannarama1

Just bumping my previous message in the hope that someone can enlighten me.

YorkshireBoy

"Destroy" may be a strong word, but one of the reasons why Experian still class you as "excellent" is that they know nothing about your employment status or income, merely that you've paid previous debts on time. As such, any rating given by them should be taken with a pinch of salt...even better, ignored!

In my opinion, lenders will view short-term self-employed status negatively.

jannarama1

Yeah, I thought it might be a bit like that. Should I just not bother applying then

YorkshireBoy

What's the reason for the credit card?...

1. To finance the start up costs of your new business
2. To BT existing debt
3. Personal spending
4. Build/maintain credit history

...or something else?

bigadaj

If you have recently become self employed then probably.y best to wait before applying for credit if you can, likemorgages if you can show yourself to be successful for a year or two then it should be easier.

jannarama1

It's for balance transfer, I've been sent a cc offer by my bank, so it seems that they are prob happy with the amount of money going in, I just want to wait until the end of the year to pay off the balance so this would be really helpful as i'm paying quite a bit of interest at the moment. Thnaks so much for all your help, I really don't know what to do! I don't want to damage my credit rating, but I really want the card!!!

jannarama1

Is anyone on here self employed and could tell me their experiences? Thanks

Buzby

It is up to how the individual lender marks you that is the primary concern - a CRA can only sell on the data it holds on you, what it thnks of you and it's speculative rating is immaterial. Some like SE, others don't, but be only difference in the former group is a slightly reduced limit until they see a few satisfactory repayments.

Shakethedisease

I'm self-employed, but have been for the last 3 years or so. I was accepted for a Tesco card and a Capital One 'World' card a few months back. Wanted the Tesco one as we shop and buy fuel there a LOT as it's just down the road. And the cash back on the other one was good as we are buying a few high price items for home improvements.

There didn't seem to be problem with me being self-employed for either of those. Tesco accepted straight away online. Cap One emailed acceptance a few days later. ( £5000 and £4000 credit limits but always pay cc bills in full monthly anyway ).

Hope this helps. And if I was you I'd just apply and see what happens. Nothing ventured, nothing gained and at least you'll know if it's best to wait a while or not, (re your self-employment status), if you're planning any future credit applications.