BAJAJ FINSERV DIRECT LIMITED
Payments Insight

Self-Employed vs Salaried Credit Cards: What’s the Difference

authour img
Xerxes Bhathena

Table of Content

In India’s evolving economy, both credit cards for self-employed individuals and those for salaried employees play a vital role in managing finances. While both types offer credit access, their features, eligibility, and benefits differ to suit the unique needs of each group. This article explores the distinctions to help Indian users choose the right card for their financial profile.

Credit Cards for Self-Employed and Salaried Persons

Credit cards for self-employed professionals cater to freelancers, entrepreneurs, consultants, and small business owners. Since their income may be irregular or variable, banks assess them differently, often requiring additional documentation like Income Tax Returns (ITRs), business proof, and bank statements. These cards may offer benefits aligned with business expenses and lifestyle needs.

Conversely, credit cards for salaried persons are designed for individuals with a fixed monthly income. Approval is generally straightforward, based on salary slips and employment proof. These cards often come with rewards and offers tailored to typical salaried spending patterns such as dining, shopping, and travel.

Comparing these cards helps users understand which suits their income type and financial goals.

Key Features Comparison

Both categories have distinct eligibility criteria, fees, and benefits. Here’s a detailed comparison based on popular Indian credit cards from official bank sources.

Parameter

Credit Cards for Self-Employed

Credit Cards for Salaried Persons

Welcome Benefits

Cashback, reward points, fuel surcharge waivers

Welcome vouchers, cashback, reward points

Annual Charges

₹500 to ₹2,000, often waived on spends

₹500 to ₹2,000, waiver on minimum spends

Eligibility

Age 21-65, ₹3-6 Lakhs annual income (ITR, bank statements)

Age 21-60, monthly salary ₹15,000+, salary slips required

Key Offers

Business expense tracking, fuel surcharge waiver, rewards

Cashback on dining, shopping, travel, EMI options

Rewards, Cashback & Points Structure

Rewards and cashback vary based on spending habits typical to each group.

Shopping

Self-employed cards may offer cashback or points on business-related purchases, office supplies, and online shopping. Salaried cards usually provide cashback on popular e-commerce platforms and retail outlets.

Dining

Salaried credit cards often have better dining rewards, such as 5% cashback or accelerated points. Self-employed cards may offer moderate dining benefits, focusing more on fuel and utility spends.

Travel

Self-employed users who travel for business might benefit from cards offering fuel surcharge waivers and travel insurance. Salaried cards may offer travel discounts, lounge access, and reward points on flight and hotel bookings.

Other Categories

Self-employed cards sometimes include expense management tools and higher credit limits to manage business cash flow. Salaried cards focus on lifestyle perks like EMI conversions and milestone rewards.

Fees, Charges & Waiver Conditions

Fees and waiver policies differ based on card type and issuer. The table below compares six cards popular among self-employed and salaried users.

Card Name

Joining/Annual Fees

Waiver Criteria

Hidden Charges

IDFC FIRST WOW Credit Card

₹0

No annual fee

Moderate interest & late payment fees

SimplyCLICK SBI Credit Card

₹499

Waived on ₹1 Lakhs annual spends

Late payment fees, fuel surcharge

HDFC MoneyBack+ Credit Card

₹500

Waived on ₹50,000 annual spends

Forex markup 2%, late payment fees

Axis Bank MyZone Credit Card

₹499

Waived on ₹1 lakh annual spends

Late payment fees, forex markup

One Credit Card (OneCard)

₹0/₹0

Lifetime free

Forex markup 1%, late fee

Self-employed cards tend to have slightly higher fees due to added benefits and risk factors but often offer fee waivers on higher spends. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website. 

Card Acceptance, Network & Payment Flexibility

Both card types are available on major networks like Visa, Mastercard, and Rupay, with growing UPI compatibility.

Visa & Mastercard

Visa and Mastercard cards provide wide acceptance domestically and internationally, suitable for business and personal use. Most self-employed and salaried cards use these networks.

Rupay

Rupay cards are cost-effective for domestic use, often with lower fees. Some self-employed cards may use Rupay to reduce costs.

UPI Compatibility

Increasingly, credit cards support UPI payments, allowing easy QR code transactions. This feature is common in both self-employed and salaried credit cards, enhancing payment flexibility.

Travel, Lounge Access & Extra Perks

Travel and lifestyle perks vary between the two categories. 

  • IDFC FIRST WOW Credit Card offers zero forex markup fee, 4X Reward Points on Credit Card spends, and discounts across 300+ merchants with 1500+ dining offers. 

  • SBI SimplyCLICK Credit Card provides up to 10X Reward Points on online spends, 1% fuel surcharge waiver, and welcome vouchers from Amazon. 

  • HDFC MoneyBack+ Card offers up to 10X cashback on online spends with a wide range of merchants, and 10% discount on Swiggy Dineout.

  • ICICI Bank Platinum Chip Card provides fuel surcharge waiver, reward points across multiple categories, and basic travel insurance. 

  • Axis Bank MyZone Credit Card offers 1 complimentary lounge access per quarter (spend-based eligibility), 1% fuel surcharge waiver, and discounts on shopping and dining. 

Lounge access is generally limited on entry-level cards but may be available on premium variants. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website. 

Which Card Is Better for Whom

Choosing between credit cards for self-employed and salaried persons depends on individual profiles.

Online Shopper

Salaried cards like HDFC MoneyBack offer better cashback on e-commerce and dining, suitable for regular online shoppers.

Frequent Traveller

Self-employed users who travel for business might prefer cards with fuel surcharge waivers and travel insurance, such as Yes Bank Prosperity Rewards.

Budget-Conscious User

For those cautious about fees, salaried cards with low or waived annual fees like Axis Insta Easy suit budget-conscious users.

Business Expense Manager

Self-employed professionals benefit from cards that help track business expenses and offer higher credit limits.

Conclusion

Credit cards for self-employed individuals require more documentation but offer tailored benefits for business needs. Salaried credit cards are easier to obtain and focus on lifestyle rewards. Choose based on your income type, spending habits, and financial goals for the best fit.

FAQs

Can I get a credit card if I am self-employed?

Yes, self-employed individuals can get credit cards by submitting income proof like ITRs, bank statements, and business licenses. Approval depends on income stability and credit score.

Some banks offer secured credit cards backed by fixed deposits or add-on cards linked to family members, allowing credit access without direct income proof.

Cards like Yes Bank Prosperity Rewards and SBI SimplyCLICK are popular among self-employed professionals for rewards and fuel surcharge waivers.

HDFC MoneyBack, ICICI Platinum, and Axis Bank Insta Easy are commonly recommended for salaried individuals due to cashback and low fees.

Cards with low or zero annual fees, easy eligibility, and rewards on essentials are best for first-time users, such as Axis Insta Easy or basic HDFC cards. 

View More
Author Image
Hi! I’m Xerxes Bhathena
Blogger

Xerxes is a seasoned finance writer with deep expertise in making complex concepts accessible. Focused on accuracy and clarity, he creates content that empowers readers to make informed financial decisions. With a passion for transparency, he delivers reliable insights that resonate with everyone, from beginners to experienced investors.

Academy by Bajaj Markets

alt 25572

All Things Tax

Navigate the tax maze with ease! Uncover Income Tax 101, demystify jargon with Terms for Beginners, and choose between Old or New Regimes.

Seasons 6
Episodes 25
Durations 1.3 Hrs
alt 45331

All Things Credit

Unlock the world of credit! From picking the perfect card to savvy loan management, navigate wisely.

Seasons 12
Episodes 56
Durations 3.0 Hrs
alt 24336

Money Management and Financial Planning

Money Management and Financial Planning covers personal finance basics, setting goals, budgeting...

Seasons 5
Episodes 19
Durations 1.1 Hrs
alt 11642

The Universe of Investments

Explore the investment cosmos! From beginner's guides to sharp-witted strategies, explore India's treasure trove of options.

Seasons 5
Episodes 23
Durations 1.5 Hrs
alt 2883

Insurance Handbook

Discover essential insights on various types of insurance in India.

Seasons 2
Episodes 6
Durations 0.5 Hrs
alt 4214

Tech in Finance

Welcome to Tech in Finance, where we explore the exciting intersection of technology and finance...

Seasons 1
Episodes 5
Durations 0.3 Hrs
Home
Home
ONDC_BD_StealDeals
Steal Deals
Credit Score
Credit Score
Accounts
Accounts
Explore
Explore

Our Products