Many think that submitting a credit card to freelancers is impossible because of their irregular income. Is it true that banks will not accept credit card applications from freelancers ? Let’s find out in the following article.
What is the Finance of a Freelancer ?
A freelancer is often synonymous with unlimited income. That is, sometimes the income of a freelancer can be very large and can even exceed the monthly salary of a company director. However, there will be times when a freelancer is in vacant times with very little income even without any income at all.
These uncertain financial conditions make freelancers often hesitant to apply for credit cards to banks. In fact, the ownership of a credit card freelancer can help facilitate transactions with international clients. Apparently, even though the financial risk of a freelancer seems high, it does not mean that a freelancer cannot make a credit card ownership request to the bank.
Basically, applying for a credit card for a freelancer is not much different from applying for a credit card for other professions that have fixed income. Actually, the bank doesn’t really care about what work you have as long as you have the ability to pay credit cards in time. Well, for those of you who work as freelancers , there are a number of things you need to do so that your credit card application can run smoothly.
Fertilize and grow discipline early so you can manage your finances without worry. As a reference source, you can download the financial planning ebook for the 30s from Bradamante!
Clean Loan History
Even if you don’t have a credit card, you may have had a loan from any loan institution with any type and time of loan.
When you will apply for credit card ownership, the history of your previous loan is one of the important things that will be considered by the bank. To find out how the history of your loans, you can refer to the rating system from Acacia Bank. The first rating shows a history of clean and timely borrowing, and the more downward the more unclean and not on time.
Before making a credit card submission, you should pay off in full the bills that you have had in the past. You can also match the billing data with Historical IDI that you can get from a loan institution, Acacia Bank office, or Acacia Bank website.
Pay attention to your smallest income figure, field, and experience
A freelancer can have a huge income in one month. However, when you apply for a credit card, the bank will still refer to your minimum income. To be able to apply for credit card ownership, you must have a minimum monthly income of IDR 3 million.
Even though you have an erratic income, make sure that your monthly income reaches IDR 3 million or more if you want to apply for credit card ownership. In addition, the work period is also a consideration by the bank. You must have worked in the field for at least one year. The reason, banks will be easier to see how your income trends and the risk of your credit card payments.
If your condition is in accordance with the terms of credit card ownership, then you can make a credit card ownership request to the bank. Before that, make sure you have prepared the supporting documents needed to make the submission.
In general, the documents needed in applying for credit cards for freelancers and other professions are almost similar. Like KTP or passport and also KK for those who are married. It’s just that, because a freelancer doesn’t have a paycheck, then you need to attach a document from a copy of the bank account balance.
Guaranteed Credit Card
Guaranteed Credit Cards are not well known. However, this type of credit card is the credit card most often used by a freelancer. To have a Guaranteed Credit Card, you need to guarantee a certain amount of money to the bank. The amount of this security deposit is in accordance with the amount of the credit card limit that you want.
If you apply for a credit card with a limit of 3 million, then you need to guarantee that amount of money to the bank. This security deposit will continue to be kept as long as you still use the credit card. And it can’t be taken as long as your credit card is still active.
So, if you experience a default, this is the deposit that the bank will use as payment. Because it uses a guarantee system, this type of credit card application will almost certainly be accepted by the bank. You can ask the bank closest to your location regarding this Guaranteed Credit Card program.
Virtual Credit Card
Virtual Credit Card is a type of credit card that is suitable for a freelancer who is busy and has a high enough number of orders and does not want to bother. You can apply for ownership of a Virtual Credit Card which you can also process online . This Virtual Credit Card is one of the credit cards that is suitable for a freelancer . Especially if your work activity is quite mobile .
In addition, the cost that you spend on a Virtual Credit Card is usually also lower when compared to a credit card from a bank. However, please also note that Virtual Credit Cards are also inseparable from the risk of crime. Therefore, make sure you apply for ownership of a virtual credit card at a trusted virtual credit card issuing institution. There are a number of publishing institutions that you can choose, for example Skrill that publishes Prepaid Master Cards for virtual wallet users.
Discipline of Making Credit Card Payments
Those are some things that you need to pay attention to so that your credit card submission can run smoothly even though you are a freelance. Basically the bank is not too concerned about what work you do, as long as according to the bank you have the ability to pay credit card bills, then you can make a credit card application.
However, even though a freelancer has an income that the bank thinks is enough to apply for a credit card, it does not mean that all freelancers can have a credit card. Given that there are currently many high school children who also work as freelancers , banks also pay attention to the minimum age limit for someone to have a credit card. If you are a freelancer and have a credit card, you can share your experience about applying for your credit card.
You can also share other tips that can be done so that the credit card application can run smoothly and easily. If you think this article is helpful, you can share it with colleagues and relatives who you think need to know things about applying for credit cards for these freelancers.