Though it may seem a bit more difficult to get a loan if you’re unemployed, there’re a few quick cash loan options with no proof of income. You only need to provide some documents showing that your income is enough to pay off the loan.
How to prove your income when self-employed?
Every lender needs to take the right approval decision and offer loans only to those borrowers who are not risky and will be able to repay the money on time. This decision depends on various factors. Most of them aim at proving your creditworthiness with the help of assessing your income. It’s easy to check it with employed borrowers while the unemployed and self-employed are more complicated. They can’t provide pay stubs from their employer as proof of regular income. Let’s see how else they can show that they are reliable applicants for a loan.
- Tax returns and tax transcripts from the IRS with the details of your adjusted gross income may be used instead of a W-2s or pay stubs. Besides, not only the overall amount counts. The lender can base the approval decision on your profit excluding your loss.
- A few weeks’ worths of bank statements can show if you deposit enough money into your bank account. This amount will show if you’ll be able to make fixed loan repayments.
- Collateral or co-signer may help you get a secured loan in case unsecured financing is unavailable due to your self-employed status. Besides, a co-signer with good credit will let you get more money at lower interest rates.
What lenders offer loans for self-employed
There’re online lenders that can provide loans for self-employed workers. Check out their offers:
How to Get a Personal Loan if you are self-employed
Being self-employed doesn’t mean you can’t get the necessary quick cash loan. You just need what to do in order to take out a Personal Loan with no proof of income. These useful tips will help you apply for a loan for self-employed with no income fast and easy:
1. Make sure you have a good credit score
Check your credit report regularly. You can check your credit for free online. Avoid any mistakes in your report. A good score over 720 will significantly increase your chances of getting a loan for self-employed.
2. Prepare the necessary documents
To facilitate the application process do all the paperwork in advance. Prequalify online and check if you are eligible. Most lenders specializing in loans for self-employed applicants require the following documentation:
- 1099s
- Bank statements
- Tax statements (tax transcripts, returns, or schedules)
- Profit & loss statements
All the documents should include information for a long period of time, at least 2 years so that the lender could see how you managed your finances over a set term.
3. Compare the offers from multiple lenders
Most lenders offer the applicants to pre-qualify online. Don’t miss this chance as you’ll be able to check the rates and choose the best deal.
4. Choose the best lender
After you’ve done some research on lending companies, compare their rates and terms and select the loan to suit your personal needs. Don’t forget to read the lender’s reviews, Privacy Policy, special offers for self-employed, and any references from experienced borrowers.
5. Complete a free online application
In most cases, you can apply for loans for self-employed completely online. If you want, you can visit a loan store or apply by phone. Fill in the required personal information and provide all the necessary documents.
6. Wait for the application to be processed and get an instant approval decision
Once you’ve completed and submitted the application, your lender will verify it and decide whether you are eligible. Usually, it takes just a few minutes. Self-employed borrowers may need to wait a bit longer – up to several days.
7. Pay off the loan in a timely manner
If you were approved for a loan being self-employed, it’s great. And now it’s time to think about repaying the money on time. The easiest way is automatic payments. There’re no late payment fees, lower rates and discounts, and a good chance to improve your credit score.
Consider Personal Loans for Self-Employed alternatives
If a personal loan doesn’t work for your needs, here are a few products to consider.
- Payday Loans for Self-Employed
- Installment Loans for Self-Employed with bad credit
- Credit cards
- Cash advances
- Self Employed Home Loans or Lines of Credit
- Pawnshop loans
Final thoughts
If you need a Personal Loan but are self-employed, start with checking if you can afford to make regular monthly loan payments. Then shop around, compare the lenders and choose the best offer. It will help you get the most convenient terms and affordable rates. Choose an online application with automatic loan repayment – it will save you time, money, and efforts!
You are about to post a question on compacom.com:
Any comments or reviews made on this website are only individual opinions of the readers and followers of the website. The website and its authors team are not responsible, nor will be held liable, for anything anyone says or writes in the comments. Further, the author is not liable for its’ readers’ statements nor the laws which they may break in the USA or their state through their comments’ content, implication, and intent.