Which credit card for self-employed?


Self-employed and freelancers can benefit from credit cards and use them in cashless payments. Here you can find out what needs to be considered when choosing an offer.

Credit cards for the self-employed – benefit from numerous advantage

Credit cards for the self-employed - benefit from numerous advantage

However, credit cards are almost indispensable in today’s business life. They are used to settle invoices without cash and are used primarily as a universal means of payment abroad. Even if you regularly shop on the Internet and want to order from online shops abroad, for example, a credit card does a good job. As an entrepreneur, you can use your credit card, for example, to procure goods on the Internet or at local dealers. Larger amounts in particular are rarely paid in cash.

For self-employed persons who also want to use their credit card for business, the use of two separate cards is recommended. One is then used exclusively for business expenses, the other for private purposes. A clean separation of private and business expenses is particularly useful from an accounting perspective.

Credit cards generally offer the advantage that you can use a credit line granted by the bank. This means that you create financial freedom by applying for a credit card. If financial bottlenecks then arise, the credit card is quickly at hand. Here, however, it is important to pay close attention to your own budget and not to strain your own financial framework too much. After all, as a self-employed person or entrepreneur, you do not want to risk that you drive your company into the debt crisis. Using the credit line to bridge financial bottlenecks can therefore only be a temporary solution. Credit cards also offer security. If you lose your card or if it is stolen, you can have the card blocked immediately and protect yourself from major financial damage.

Credit cards are particularly good travel companions for the self-employed. If you often travel abroad, it is one of the best accepted means of payment. This saves you the frequent change of cash and you can both make cashless payments at many acceptance points on site and withdraw cash at the appropriate machine.
Advantage for the self-employed: For example, if you consistently pay for business expenses such as regular refueling with a credit card, you have a good overview and do not have to laboriously collect documents.

Prepaid credit cards – an alternative?

Prepaid credit cards - an alternative?

A classic credit card has a certain credit line. This means that a certain amount is available to you in the form of a loan, which you can use and settle in full or in several installments at the end of the month. This credit line usually depends on your credit rating. When you apply for a credit card from a bank, you usually have to show what your income is. Of course, as a self-employed person you cannot submit proof of salary. Most banks require an income tax return here. It is also often asked how long the company has existed. The credit institutions want to rule out as far as possible that the loan will default.

For example, if you are a business start-up or cannot prove for other reasons that your company is making a profit, a prepaid credit card can be a real alternative. This is a credit card that is filled with a credit in advance, which you can then use as usual abroad or for cashless payments. A prepaid credit card also offers good protection against over-indebtedness.

What will this cost me?

What will this cost me?

There is no special credit card for the self-employed, but you can find an offer that suits your needs and can be integrated very well into your business payments. When applying for a credit card, be careful about the fees you will be charged.
Many offers are associated with an annual fee, which can, however, be waived from a certain annual turnover. Fees are also often charged for use abroad. So think in advance how and where you want to use your credit card.

For example, a credit card with a high annual fee but low or no international fees may be the right choice if you travel a lot abroad. On the other hand, if you do not want to use the credit card when traveling, fees for foreign use play a minor role. A comparison of the different offers is recommended in any case.