Reply
Frequent Contributor
RSCo
Posts: 473
Registered: ‎02-11-2013
0

When Applying For CCs Using Self Employed...

For personal credit cards, has anyone using the employment designator of "Self Employed" had an issue where the credit card company questioned this?  Do all "Self Employed" applicants automatically get the dreaded 7-10 day review message and does the credit card company ask for financial documents?

Citi Hilton Honors: $25,000 -- Chase Sapphire Preferred: $25,000 -- Amex PLat: $NPSL -- Amex Everyday Preferred: $10,000 -- Citi TY Premier World: $16,800 -- NWFCU: $7,500 -- Chase Amazon Rewards: $7,000 -- Citi Home Depot: $7,000 -- Citi AAdvantage Platinum Visa Sig: $5,000 -- Visa Black Card: $5,400 -- Discover IT: $8,000 -- AmexTrueEarnings: $10,000 -- Ethan AllenGE: $4000 -- Chase Slate: $2,500 -- CapOne Platinum: $2,500 -- CapOne Platinum: $2,500 -- AmazonGE: $2,200 -- Barclays BJs: $1,800 -- WalmartGE: $1,500 -- PenFed LOC: $500
Valued Contributor
Gunnar419
Posts: 1,231
Registered: ‎01-23-2013
0

Re: When Applying For CCs Using Self Employed...

I'm self-employed and have been instantly approved most of the times I've apped. Even the one time I got a "pending" message, I was approved within minutes.

 

The only thing I've noticed -- and this may or may not have anything to do with self-employment -- is that the APRs I'm given seem worse than my credit scores and clean history should warrant. Maybe there's some caution there.

 

When getting mortgages, I've had some hellacious experiences because of self-employment. But never with credit cards.

Epic Contributor
Creditaddict
Posts: 22,045
Registered: ‎10-23-2007
0

Re: When Applying For CCs Using Self Employed...


RSCo wrote:

For personal credit cards, has anyone using the employment designator of "Self Employed" had an issue where the credit card company questioned this?  Do all "Self Employed" applicants automatically get the dreaded 7-10 day review message and does the credit card company ask for financial documents?


YES (Usually) and I don't think it's really fair... I can't say more!

Fico Scores: EQ- 626 Overstck., TU 696 Walmart, EX 695 Chase (11-05-14)
You will have to put up Electric Fence to keep me in the garden!
Highest Limit: Navy Federal Cash Sigi Visa $50k (AU)
Lowest Limit: Target $200
66 Cards and Counting :smileytongue:
Valued Contributor
navigatethis12
Posts: 1,954
Registered: ‎01-24-2012
0

Re: When Applying For CCs Using Self Employed...

For whatever reason, lenders seem to view self employed people as a greater risk. A credit union I saw said they ask for past two years of tax returns to approve a credit card for self employed, but just ask for a paystub from anyone else. I just put full time and the name of the business, instead of self employed. I've never had a problem with that.

Established Contributor
Pilotdude
Posts: 955
Registered: ‎02-02-2013
0

Re: When Applying For CCs Using Self Employed...


navigatethis12 wrote:

For whatever reason, lenders seem to view self employed people as a greater risk. A credit union I saw said they ask for past two years of tax returns to approve a credit card for self employed, but just ask for a paystub from anyone else. I just put full time and the name of the business, instead of self employed. I've never had a problem with that.


+1 

I am a self employed private commercail pilot and the above is exactly what I use.


NFCU #1 Fan!! NO MOAR APPS TIL 10/13 Minimum!!
TU -746, EX - 721, EQ -745
Cards:NFCU Flag Visa Sig $10000, CSP $8500, AMEX BCP $2000 Freedom $3500, Disc IT $5000, Cap 1 Green $2100, Credit 1 CLOSED! AU on Amex Green, Discover $2000, Cap One Plat $1000
Established Contributor
scenery_guy
Posts: 936
Registered: ‎07-24-2012
0

Re: When Applying For CCs Using Self Employed...

I'm self employed as a sole proprietor, always use my name and self employed. Never had an issue, get the 7-10 day message on occasion but one quick call to verify something not related to my employment and I am approved. 

 

AMEX seems to be fine with it as I have multiple business cards as well as multiple personal cards all using the above information. Never had to prove income to AMEX, Chase has asked some pretty detailed question about my income but never asked for proof. 

 

My business credit cards look funny as it has my name twice, once for cardholder and once for company. My employee cards are even funnier as they have card holder name and my name as company. 

Senior Contributor
Open123
Posts: 4,219
Registered: ‎02-23-2011
0

Re: When Applying For CCs Using Self Employed...

I think for new business accounts, they just want to interview you.  

 

Ask what your business entails, years experience, expected revenue and anticipated spending.  On occassion, if you have a fictitious business name (LLC with different Tax Id #), they may request a bank statement with the business name and address or an IRS application form with Tax ID, etc...

 

Established Contributor
cashnocredit
Posts: 1,030
Registered: ‎07-18-2009
0

Re: When Applying For CCs Using Self Employed...

No question being "self empkoyed" increases your credit risk. There is a text, "The Credit Scoring Toolkit" by R Anderson that covers a lot of the factors used in credit scoring, design, and use of. It probably has a similar effect to knocking off 20 to 30 points from a FICO score. FICO scores do not use any employment info but acquisition scores, typically using FICO combined with app info,  can factor this as well as income.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k
Regular Contributor
Guyatthebeach
Posts: 218
Registered: ‎09-04-2012
0

Re: When Applying For CCs Using Self Employed...

Usually, banks will ask for two years of tax returns or other income proof. It's simply to proove your ability to pay. 


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}