Can I get a credit card as self employed with no ITR filed? What are my options?

Question

Hi everyone, I'm Priya Sharma from Pune. I've been doing freelance graphic design work for about 2 years now. Monthly income is roughly ₹35,000-₹45,000 but I've never filed ITR because honestly I didn't know I was supposed to and my income felt too small to matter. Now I'm trying to get a credit card and every bank is asking for ITR of last 2 years or Form 16 which obviously I don't have.

SBI rejected me, HDFC didn't even process my application. One friend told me to try a secured card against FD but I'm not sure how that works or if it's worth it. Also worried about whether having a credit card will somehow flag me with the income tax department if I haven't filed returns. Is that a thing?

I'm not looking for a huge limit, even ₹50,000 would be fine for online shopping and travel bookings. What should self employed people like me do in this situation? Any card specifically easier to get?

Answer 1

Honestly, you're in a pretty common situation. Tons of freelancers and self-employed people fall into this gap — earning decently but no paper trail that banks like.

First thing first — the FD-backed secured card your friend mentioned is genuinely your best option right now. Here's how it works: you put a fixed deposit with a bank, usually minimum ₹10,000 to ₹25,000 depending on the bank, and they give you a credit card with a limit that's typically 80-90% of that FD amount. The FD keeps earning interest, you get a working credit card. Win-win.

Banks that are pretty easy with this route:
- **SBI Unnati Card** — FD of ₹25,000 minimum, no annual fee for first few years
- **HDFC MoneyBack against FD** — HDFC is actually quite smooth for FD-backed cards despite rejecting regular applications
- **Kotak 811 #DreamDifferent Card** — this one you can get even with just their savings account and a small FD
- **Axis Bank Insta Easy Credit Card** — another FD-backed one, straightforward process

For your ₹50,000 limit target, just put in an FD of around ₹55,000-₹60,000.

Now about the tax department concern — this is where most people get it wrong. Having a credit card does NOT automatically flag you. Banks don't report card issuance to IT department. BUT if your annual credit card spend crosses ₹2 lakh in cash payments or certain thresholds, that can get reported under SFT (Statement of Financial Transactions). So just don't pay your card bills in cash and you're fine.

That said — please start filing your ITR from this year. Even if previous years are pending, you can still file for FY 2022-23 with a late fee. Having even one year's ITR filed makes everything easier — loans, cards, visa applications, everything. And at ₹35,000-₹45,000/month, you likely fall under the basic exemption limit anyway so tax liability might be zero, but having the filed return is the document that matters.

After 12-18 months of using your FD card responsibly — paying full dues, not just minimum — your CIBIL score will build up and you can then apply for a regular card like IndusInd Platinum or even HDFC Millennia without any FD backing.

Go with the Kotak 811 route first. Easiest to open fully online without branch visits.

Answer 2

Arun's advice on FD cards is solid but I'd push back slightly on one thing — don't rush to put a big FD just to get a credit card. That money gets locked and if you need liquidity as a freelancer, that can hurt.

Instead, look at these alternatives first:

**Prepaid/RuPay credit cards** — IDFC FIRST Bank has a feature called 'cash deposit credit card' kind of setup and their FASTag linked products. Also check out **Slice** and **Uni Cards** — these are card-like products for people without traditional income proof. Slice especially has approved many freelancers I know with just bank statements of 3-6 months showing regular credits.

**OneCard** — applies based on your spending potential and bank statement analysis, not ITR. Worth trying.

**Jupiter Edge CSB Card** — again, newer age fintech-bank partnership, more flexible with self-employed folks.

The bigger thing Priya you need to do urgently is get your GST registration if your annual income is crossing ₹20 lakh, or even voluntarily register below that. GST registration actually acts as a business income proof that several banks accept now. HDFC and ICICI both accept GST certificate as income proof for self-employed applicants.

Also open a separate current account or business savings account and route ALL your freelance income through that. 6 months of clean statements showing ₹35,000-₹45,000 monthly credits is actually quite convincing for newer banks.

My recommendation — try Slice or OneCard first since zero FD needed, then build from there.