Nowadays, you'll see many people working as self-employed professionals. After all, wouldn't you do the same since you have no boss but you? While it's beneficial for them, one problem that often comes up is roadblocks if you're applying for a personal loan.
The simplest explanation for this is all because of our credit history. As a self-employed freelancer, you’re generally considered a higher risk when you apply for a loan. Since you don't have a stable monthly income, it’s challenging to meet your loan repayment. However, you shouldn’t worry because there are ways to help your case.
This article lists down the necessary steps to help you apply for a personal loan faster if you're self-employed. Read on below to get started.
#1 - Check Your Credit Rating
Before applying for a personal loan, the first step you should take is to check your credit rating. This is relatively simple as most credit-reporting agencies will provide you with a free copy of your credit report. Thus, you should check yours often to be sure that you're not making any mistakes and if there are any discrepancies.
#2 - Prepare All of the Necessary Documents
Now that you have checked your credit report and the status of your credit score, it's time to collect the required documents. Here are some things that you need to have when filling out the personal loan application forms.
Social security number
Receipts from the last three months
#3 - Compare Lenders
After you've collected all the necessary documents and have a good idea of your credit score, you can start comparing the lenders. There are a few things that you should consider when you're comparing the lenders.
The first thing to look for is the interest rate. A higher interest rate may be unavoidable, but it's still best if you can find low-interest rate loans. The repayment tenure is also an essential factor to consider. Usually, the lenders with longer repayment tenure are also with higher interest rates.
The other important thing to keep in mind is the credit limit. You'd want to apply for a loan with a credit limit that you can afford to pay back. If you're not careful, you may end up receiving a loan with a credit limit that's too high. Remember, the banks aren’t giving you a lower credit limit, so you'll need to be careful in choosing the amount of loan to apply for.
#4 - Choose the Lender Who Understands Your Situation
Now that you've compared the lenders and you've chosen the one that is the best for you, you can now decide which lender you'd like to go with. Again, you need to select a lender who understands your situation.
The first thing to consider is the lender who will offer you a loan even though you're self-employed. Another thing to think about is the lender willing to provide you with a loan with a reasonable interest rate and repayment term.
#5 - Apply for the Loan
After you've taken the time to compare the lenders, you can now begin the process of applying for your personal loan. This is relatively simple as most lenders have a simple online application process that you can apply for. One thing to keep in mind is to have all the necessary documents at hand when you're filling out your application form.
#6 - Wait for Approval
At this point, you've done everything, and you've provided all the necessary documents, so it's just a matter of waiting and hoping that your application will get approved. Make sure that you're checking your account regularly to see if the loan has been approved. If you don't have access to the lender's website, you can also call their hotline. You can also send them an email to get in touch.
As you can see, applying for a personal loan when you're self-employed doesn't have to be a difficult task. All you need to do is follow the steps we listed above, and you'll be sure to get your personal loan application approved quickly. Good luck with your application!
Central Loan & Finance has comprehensive programs for personal loans in Atlanta, GA. We understand the needs of any applicant, so we always make it a priority to give you the best repayment terms and affordable rates. Contact us today to learn more!