A freelancer is a self-employed person who is hired by companies to work on specific assignments. These individuals may often work for multiple clients at one time and usually make money on a per-job basis. However, they may charge hourly or daily rates, depending on the nature of the work.
Financial institutions are aware of the current needs of freelancers and offer products and credit cards specifically targeting these professionals.
- American Express Business Card: charges an annual fee of $97 (with the first year costing around $50) and gives access to a network of American Express customer service employees with special offers and advantages. The card also provides access to the Membership Rewards Club Program, through which the cardholder accumulates points that can be redeemed for prizes. Membership in this program is also accompanied by access to the Business Travel Unit.
American Express is also the Business Gold Card, which has an annual fee of approximately $160 (with the first year costing only $79). This card offers advantages on international flights through the International Airline Program. Both cards come with fraud protection insurance, purchase return insurance, and shopping break insurance.
- Professional Mastercard: the first year is free (when you sign up online), and then a renewal fee of $40 is subsequently charged (this may be waived if annual spending exceeds $2,500). The advantages of this card offer a 2% discount in the Repsol Group and a 12% discount for hotels booked through Hotelopia. This card includes accident insurance and access to Star Rewards (cashback).
Capital One also offers a card geared especially towards self-employed workers. Known as the Mastercard Executive Card, it offers the same advantages as the previously mentioned card. The first year is free if you sign up online, and every following year is approximately $97. The card comes with accident and travel assistance insurance and offers 2 Star Rewards points for every $8 spent.
- Banco Popular Professional Card: with an APR of 21.55% and a TIN of 1.64%, this card, exclusively for freelancers, does not charge an enrollment fee. However, it does charge an annual renewal fee of $50. With this card, the holder gains access to a series of specialized insurance (for example, lost card, traffic fines, and home assistance). The card also includes temporary work disability and accident insurance and travel assistance for up to $700,000 of coverage. It also provides a 2% discount on fuel.
- Santander Business Card: with an APR of 19.56% and a TIN of 1.50%, this card charges an enrollment fee for the first year and a renewal fee of approximately $73. It offers a 1% discount on fuel and includes several related insurances (accidents, purchases, travel assistance, multi-assistance, and fraudulent use).
- Bank Credit Professional Card: This card has no registration or maintenance fee if the client has contracted their services without commission for micro and independent businesses. However, usage must exceed $6,000 per year. The is no registration fee, and the maintenance fee is also waived if the client has contracted the service without commissions for micro and independent businesses or if the amount spent exceeds $6,000. In addition, it is always free from the third beneficiary card. Each time the cardholder buys with the card, they automatically receive points that can be exchanged for gifts. Also, it offers a 2% discount at gas stations and includes accident insurance and travel assistance insurance.
All in All
We here at Complete Controller rarely make blanket statements, but we will make an exception. It is essential that freelancers seriously consider a business credit card. We look at it because you are essentially throwing away money by not taking advantage of the benefits available through these various card programs. Set yourself up for success by researching each card, weighing the pros and cons, and applying for one that fits your specific needs.
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