This article was originally on GET.com at: 2 Things Self-Employed Singaporeans Must Know If They Want To Own A Credit Card
Are you a self-employed individual who is looking to get a credit card? Besides using a website like GET.com to help you compare cards easily at a glance and choose the right credit card for yourself, there are two important things you need to keep in mind should you want to own a credit card. While application for cards can be done online or at the bank branches just like the way regular salaried employees would, the type of documents and information required of self-employed individuals differ slightly.
2 Things Self-Employed Singaporeans Must Know If They Want To Own A Credit Card
1. You Need To Declare Your Income Diligently
As a self-employed person, it is your responsibility to ensure that you make mandatory Medisave contributions to your CPF account; have proper records and accounts of your business; conscientiously complete and submit your income tax returns and pay the amount that is due; and if need be, register with IRAS as a GST-registered individual.
Not only is hiding one's income an act against the law, your declaration of income will go a long way in helping you secure a credit card as a self-employed person. So, always play it safe and declare your income committedly no matter what because your tax forms function as an essential proof of income. Whether you are a business owner, business partner or a full-time freelancer, you have the obligation to declare your earnings.
2. Make Sure You Have The Required Income Documents
Depending on the bank you would be applying for your credit card from, the income documents and relevant information required of you can vary. Be sure to give yourself ample time to get your documents sorted out so you'll have them on hand when you are applying for the card online or at the bank branch.
Say, you are a Singaporean or PR keen on getting a Standard Chartered credit card. In addition to producing a copy of your NRIC/passport, self-employed individuals are required to produce a copy of their Income Tax Notice of Assessment for the previous two years. You must be in business for at least two years before you can try applying for a card from Standard Chartered.
Self-employed Singaporeans who are interested in UOB credit cards need to produce their NRIC, recent billing proof as per their local home address if it's not the same as the address on their NRIC, as well as their latest Income Tax Notice of Assessment.
On the other hand, those contemplating to apply for POSB credit cards need to submit their latest two years' Income Tax Notice of Assessments on top of the usual NRIC/passport requirement. This is similar to the requirement stated by Standard Chartered.
And if you are considering American Express credit cards, you will need to provide further information such as your company name, type of industry, business registration number, annual income, and length of employment as seen in the screenshot below.
Image source: American Express Singapore
To reiterate, whatever information and documents required of you may or may not be the same across the different banks in Singapore. It's always a good idea to have all the important information and documents with you when you are applying for credit cards.
Remember to do your research while shopping around for credit cards because what I've listed above isn't exhaustive. There are many banks in Singapore that offer credit cards for consumers!
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