Is it possible to get a personal loan when you’re self-employed? Absolutely! Here’s how you can get a personal loan as an independent contractor.
Not everyone can get through life without needing a loan to help with bills. If your savings are depleted after being out of work, chances are you may want to apply for a short-term loan.
Yet if you’re an independent contractor, you may not have the pay stubs to prove your steady income. These all-important documents are usually part of a loan application.
Without pay stubs you can still apply and qualify for a loan. Here are some things to know about getting a loan as an independent contractor.
Loans for an Independent Contractor
The independent contractor definition is someone who works for themselves, often for a company who issues them a paycheck but doesn’t take out taxes. That means you aren’t officially on their payroll, and they don’t issue you a paystub, one of the biggest requirements for getting a short-term loan.
So if you’re a freelance writer or a contract interior decorator, or if you hold any other type of independent contractor jobs, how can you prove you make enough to secure a loan?
You Can Still Get a Loan
You can still qualify for a short-term loan, even as an independent contractor. The best way to find out what paperwork you need is to start an online application. During the process, you’ll enter information about your independent contractor taxes from previous years, along with your AGI.
While you may have to produce more proof of income because of your job, if you have your tax information this shouldn’t be a problem. If you don’t have it, you can ask the IRS for a copy of your tax transcript.
More Verification Documents
Besides for several years of tax transcripts, your lender may ask for bank statements to verify income. If you bank online, download the latest statements from the bank’s website, after you log into your account. You can also visit your nearest branch and ask them to print you a copy.
The lender may also use your credit score to help determine if you qualify for a loan. Even if your other documents don’t show everything you need, if you have a high enough credit score, it’s possible you’ll still be approved.
You Still Have Options
If you’re just starting out as an independent contractor and don’t have years of taxes to fall back on, you may still be able to get a short-term loan.
Ask for options that involve putting up collateral, or if a co-signer is an option for you. Examples of collateral include a CD or a vehicle. Click to discover more about payday loans for Uber drivers and other independent contractors.
Getting the Money You Need, Fast
It may seem like your options as an independent contractor are more limited. Yet payday loans and other short-term loans aren’t out of the question for you.
With the tips above, you should be able to apply and get approved for the loan you need. Start your application today and find out if you qualify.