Personal Loans for Self-Employed Individuals

Personal loans for self employed do exist but there are certain specifics of them that you should know about.

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Today, 10% of the US workforce is self-employed, which means millions of people.

Many financial institutions use different methodologies to determine creditworthiness and conditions for them.

In this article, you will find out general but helpful information about the topic, for instance, if it is possible to qualify for a loan despite bad credit; what documents you will have to provide; if you can get a loan without proof of income, and more.

Documents

Below you will find a list of documents that you may have to provide when applying for personal loan for self-employed individuals:

  • Bank statements;
  • Tax return confirmations;
  • The Form 1099-MISC;
  • The Schedule C/SE.

personal loan for self employed

Applying without Proof of Income

Getting Installment loans for self employed if you cannot provide proofs of your income may be pretty challenging.

However, if you have sufficient debt to income (DTI) ratio and good credit history, you have chances of getting money.

Anyway, it really depends on a lender who decides if to give you some money without relevant documentation.

Bad Credit

There are financial service providers that will allow you to get some money regardless of you being self-employed and your bad credit.

However, you should be ready for higher interest rates.

Also, if there are several factors affecting your creditworthiness, you may not find a lender of an unsecured loan for you, and in this case, you can opt for a secured loan.

Payday Loans

Although it is much more difficult for people who work for themselves to get payday loans than for those who have a steady job, it is still possible.

You just need to carry out a search on the Internet to find out if there are lenders operating in your state that will give you a chance.

Also, you should note that in some states payday loans are simply banned.

Finding a Reliable Financial Service

Although it may be hard to find financial services offering loans for self-employed, it does not mean that you should get desperate and accept every offer that you see on the Internet.

If there are some problems that affect your creditworthiness, you may have to pay more, but, generally, you should spend some time to compare the conditions of different companies and find the best ones.

Bottom Line

Being self employed does not mean that loans are not for you.

It may be more difficult to get them, but still possible.

There are things that you can do for increasing your chances.

For example, you can increase your credit score, get reliable proof of income, etc.

David Johnson

David Johnson

David is the founder and personal loans (payday loans) expert at LvTapFest. Leveraging he vast knowledge of the financial industry, David’s work can be found on a variety of website. He has been featured in USA Today, International Business Times, and Fox.
David Johnson

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Consumer Reviews



One Review

  1. Peter says:

    what schedule is needed when applying for a personal loan and being self employed?

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