Help with getting a credit card as a sole trader

[turnipapple]

Hi, I've been struggling to get a credit card since becoming a sole trader in July last year. I'm an IT consultant.

I was declined by ANZ (they said my business must be operating for 2 years before getting a card) and Citi (no reason provided). I included my tax accountant's details but that was insufficient.

Is there anything I can do or any cards that are easier to get? I still have a NAB Qantas card that I opened in April last year so maybe the best option is to renew that and try to get the fee waived. Note I'm still serving the St George card churning waiting period until November.

Thanks in advance

 

[lovetravellingoz]

I'm still serving the St George card churning waiting period until November.

Thanks in advance

As a new sole trader you might find STG hard to get back till you have built up some history as a sole trader.

In the early years as a sole trader cc approval is difficult, and even after years more complicated in what they want to see. Even in my case where I was paying myself a set wage generous enough to automatically get 99 % of cards if I had been an employee.

 

[turnipapple]

As a new sole trader you might find STG hard to get back till you have built up some history as a sole trader.

In the early years as a sole trader cc approval is difficult, and even after years more complicated in what they want to see. Even in my case where I was paying myself a set wage generous enough to automatically get 99 % of cards if I had been an employee.

Thanks, I considered changing to a company structure to pay myself but with the administration costs, I'm not sure if it's worth it.

I was interested in the AMEX Qantas business card but it's looking unlikely

 

[SYD]

Thanks, I considered changing to a company structure to pay myself but with the administration costs, I'm not sure if it's worth it.

I was interested in the AMEX Qantas business card but it's looking unlikely

As a company I wanted to get a Westpac card with sign up bonus but bank said no (similar to you above). I’d been with AMEX for decades and actually got the AMEX Biz CC fairly easily (but of course, no sign up bonus being an existing card holder).

I set myself up as a company mid-2019. Did it online for $495 but you should consult an accountant etc. There are pros and cons.

 

[turnipapple]

As a company I wanted to get a Westpac card with sign up bonus but bank said no (similar to you above). I’d been with AMEX for decades and actually got the AMEX Biz CC fairly easily (but of course, no sign up bonus being an existing card holder).

I set myself up as a company mid-2019. Did it online for $495 but you should consult an accountant etc. There are pros and cons.

Ta. I'm almost done serving my 18 months exclusion with Amex.

I've just sent a message to my accountant to see what the fees would be all up per year Do you mind if I ask how much it is per year all up for admin/gov/accounting fees as a company structure?

 

[SYD]

Ta. I'm almost done serving my 18 months exclusion with Amex.

I've just sent a message to my accountant to see what the fees would be all up per year Do you mind if I ask how much it is per year all up for admin/gov/accounting fees as a company structure?

There is an annual Filing Fee of $275. Plus accountant fee to prepare (mine’s a couple of $100. Plus you’ll probably double your annual tax return accountant fees. You’ll still need your personal return plus a new return each year for the company.

Other ongoing costs you’re probably paying anyway, Insurances, accounting software (Xero/MYOB etc). I shifted my phone over to the company (no FBT).

As above, you can create and register a company online. It was $495 (but may have changed). There are several companies that will do the registration for you and the real value add is they’ll provide a Company constitution - important if two or more Directors. Your accountant may be able to advise on that also. Plus if there is an optimum time to transition eg start of next FY.

Other things to consider Cash or Accrual accounting (cash is simple), quarterly or monthly BAS. FBT reporting - that can be onerous and probably not worth the effort - others may differ but something to research, especially for “work related” travel.

 

[blackcat20]

I had no issue getting one from Westpac.

 

[SYD]

I had no issue getting one from Westpac.

Company or Sole-Trader? WBC required 3yrs trading history to issue a card the company. The shortcut with AMEX is I’m personally liable for the Business card.

Actually pondering the OP, I’m surprised there would generally be problems getting a CC as a ST if the individual is liable?

 

[turnipapple]

There is an annual Filing Fee of $275. Plus accountant fee to prepare (mine’s a couple of $100. Plus you’ll probably double your annual tax return accountant fees. You’ll still need your personal return plus a new return each year for the company.

Other ongoing costs you’re probably paying anyway, Insurances, accounting software (Xero/MYOB etc). I shifted my phone over to the company (no FBT).

As above, you can create and register a company online. It was $495 (but may have changed). There are several companies that will do the registration for you and the real value add is they’ll provide a Company constitution - important if two or more Directors. Your accountant may be able to advise on that also. Plus if there is an optimum time to transition eg start of next FY.

Other things to consider Cash or Accrual accounting (cash is simple), quarterly or monthly BAS. FBT reporting - that can be onerous and probably not worth the effort - others may differ but something to research, especially for “work related” travel.

Thanks very much for the detailed response!

 

[turnipapple]

I had no issue getting one from Westpac.

That’s good. I’m hesitant with Westpac unless I can improve my chances.

Have been declined a car loan from them via employee benefits when I contracted for them because I was on a 1 year contract (PAYG) and they wanted permanent

 

[blackcat20]

Company or Sole-Trader? WBC required 3yrs trading history to issue a card the company. The shortcut with AMEX is I’m personally liable for the Business card.

Actually pondering the OP, I’m surprised there would generally be problems getting a CC as a ST if the individual is liable?

Sole trader.

 

[aspro2]

Probably aim low (28 Degrees? Coles? Amex Essentials?) so that some sort of history can be established during your first few sole trader years.