How to Get a Personal Loan When Self-Employed
Self-employed loans can be a little tricky for many people. Usually you have no proof of income or at least not a paycheck stub that employees of other companies receive when they get their paychecks. The good news is you still can qualify for loans if you are self-employed and even get interest rates that are comparable to full time employees. Self-employed loan amounts range from 500 - 5000 dollars. You can still get a personal loan if you work for yourself.
What Are My Loan Options If I Am Self-Employed?
There are many lenders around that will offer you a personal loan if you are self-employed. We have a network of direct lenders that may make you a personal loan offer. If you are interested, just complete the application and we will attempt to match you with a lender. If we are successful you will receive a loan offer almost immediately.
Self Employed Personal Loans Up to $2500
Knowing all your loan options is the best way to make an intelligent and informed decision. A personal installment loan with one of our direct lenders is one of your options. What are some other options? Let's take a look.
- Pawn Loans
- Payday Advance
- Home Equity Loan
- Credit Unions / Banks
- Family and Friends
A very simple loan format. You bring an item that is worth some money to the pawnbroker, they lend you money and keep the item in their store until you pay it off. They do not look at your credit score or your proof of income. So getting a loan while self-employed is not big deal at all. The only catch is you have to have something pretty valuable that you do not need for a while.
Payday Advance for Self-Employed
Probably your most expensive option but some payday advance lenders are willing to loan money to people who are self-employed. It is worth your time to call around and find the best rates before committing to a payday advance. But if you really need the money, like if your car is broke down and you are up a creek until it gets fixed, you might be very happy to pay the fees on the payday advance.
Home Equity, Credit Unions, and Banks
These are all good options and likely your cheapest loans. However, these avenues are going to likely check your credit and may take a few days to process the application. Also you will probably be required to produce tax returns showing your income.
How to Compare Self-Employed Loans
Here are a few things to pay close attention to when you are shopping for personal loans for self-employed individuals.
- Who Is Offering the Loan - Sticking with a reputable company that has a track record could save you some serious headaches.
- How Much Will It Cost - Look at the interest rates as well as any fees associated with the loans.
- Will My Credit Score Be an Issue - Some lenders run credit reports and some do not. It is good to know ahead of time which you are dealing with.
- When Are Payments Do - Know the payment format and when each payment will be coming out of your account. Are they direct withdraw or will you need to send in a payment.
Choose your self-employed loan amount: $500, $1000, $2000, $3000, $4000, $5000.
Will My Credit Score Be a Problem?
If you are dealing with a bank or a credit union then your credit score likely will come into play. Many online personal loan lenders do not run a hard credit check, meaning with the big 3 credit bureaus. Some may access a soft credit score which will not affect your credit with the big bureaus.
What if I Have No Proof of Income?
My people who are self employed do not get a regular paycheck stub as proof of income. Many lenders will allow you to use a tax return or some other form of proof of income. Some lenders do not even require that. They handle all verification digitally so you do not need to show proof of income.
The best thing you can do is educate yourself on all loan options available if you are self-employed. Once you are equipped with the information you can decide what best fits your program.
Cash King Co is not a lender. Must be 18 to apply. All loan terms are between you and the direct lender.
|Thomas Moore is a proud American with a Bachelors Degree in Business Administration from the University of San Diego. He has been in the financial industry for many years holding numerous licenses in multiple states. He currently helps operate cashkingco.com and is our resident expert on all things finance and a great writer. Thomas is also an avid outdoor enthusiast that loves fly fishing streams in the Western United States. LinkedIn Profile|