Using credit cards has a lot of advantages. You can get perks such as freebies from points, installment options, and even use it to fund your other business transactions.
As long as you avoid common credit card mistakes, this little piece of plastic can be a powerful financial tool.
However, some remote workers and freelancers have a hard time getting their credit card applications approved.
Some banks are hesitant to issue them their cards because of their unstable cash flow.
Fortunately, there are ways to increase your chances of getting approved:
Pay your Bills on Time
When applying for a credit card, banks assess your credit score to see if you qualify.
A credit score measures your ability to pay based on your past credit history, which includes your bill payments.
To increase your credit score, make sure to pay your bills on time, whether it be utility bills, home credit, or checks issued.
Build a Strong Relationship with Your Bank
Did you know that you have a better chance of getting a credit card from your own bank?
As a freelancer during my younger years, I used my bank account for receiving client payments and commissions. I also kept a sum of money in that account.
After around 6 months, I asked for a credit card. Surprisingly, they gave me one with a modest credit limit.
Know that your branch of account can check your financial history like the average daily balance, deposits coming in, and the like.
So, it’s best to build a strong relationship with your bank by maintaining a healthy balance to get higher chances of approval.
Pay Your Taxes
Credit card companies also ask for an Income Tax Return (ITR) to investigate your financial capacity.
When they examine your ITR, they can determine if they can offer you a credit card – and how much your limit should be.
So, try to pay your taxes on time as well. You can check this guide to file your taxes as a freelancer or remote worker.
Apply for a Secured Card
Banks also offer secured card options. A secured card is a credit card backed up by a deposit.
For example, you deposit an amount of PHP 100,000 on a secured card. The bank will give you a card with a credit limit of around 80% or higher than that deposit.
The catch is that you can’t withdraw the PHP 100,000 until you cancel your card because it’s the money functions as a security deposit.
The good thing about this is you don’t need to show many financial documents to get approved.
Moreover, you get to enjoy the perks of a regular credit card like installments, points, and more.
Another tip is you can use this secured card to build a credit history.
This way, you’ll have better chances of getting approved for other credit cards as well.
Get a Stable Remote Working Job
Having a stable remote job can help you get a credit card.
A stable remote job enhances your chances of getting your credit card approved because lenders see consistent income as a sign of financial stability.
However, stable online job options are limited, unless you partner with established agencies like Remote Staff.
Remote Staff offers long-term remote working contracts for Filipinos.
Just in case your client abruptly terminates your contract, Remote Staff can replace them with others who need your skills.
On top of that, you can ask Remote Staff for documents attesting to your income when applying for credit cards.
Build your remote working career and sign up today!
