The bank says it has made “temporary updates” to its lending criteria due to the current uncertainty arising from the coronavirus crisis. He says he will keep reviewing the criteria.
The rules apply to new loan and card applications, so if you are self-employed and already have a Sainsbury’s Bank loan or credit card, you won’t see any changes.
Many of the major 0% credit card offerings have gotten worse in recent months and providers have restricted their lending, but Sainsbury’s Bank is the first we’ve seen to introduce a total ban on credit card applications and loans for all freelancers.
If you want a new credit card or loan, see our Cards and loans guides to all the current top picks.
Can I get a credit card or loan if I am self-employed?
Importantly, Sainsbury’s Bank is the only bank we have seen that has introduced this type of blanket restriction so far.
HSBC, Lloyds banking group, M&S Bank, MBNA, On a national scale, Santander, Tesco Bank, TSB and Virgin money Everyone has told us that they ARE still lending to some freelancers, although each bank will have their own criteria on who they accept.
This means that if you are self-employed, you may still be able to get some of the best credit cards and loans out there; for example, M&S Bank currently offers the longest 0% balance transfer card.
However, the loan criteria have become stricter across the board in recent months, so before applying, it is worth using our eligibility calculators to Credit cards and we loan to see which products are more likely to be accepted.
What does Sainsbury’s Bank say?
A Sainsbury’s Bank spokesperson said their move was only temporary and due to the current situation, adding: “We constantly review the market and consider a number of factors when providing credit cards and loans. We regret any inconvenience this may cause to these customers. and we keep this decision under constant review. “