7 Key Tips for Getting a Self-Employed Personal Loan

Are you looking for a loan when self-employed?

Finding the process more difficult than you expected?

While being self-employed comes with many benefits, the ability to get a personal loan is not one of them. Getting a personal loan can seem like an impossible task without a solid employment record to back you up. Luckily, though, as long as you follow the right tips and tricks it can be done.

Below we’ll give you our top tips for getting a personal loan when you’re self-employed.

1. Get Your Paperwork Together

One of the top things that will help you get a personal loan is to ensure that you have plenty of paperwork to show to your potential lender. The right paperwork can help you demonstrate your worthiness as a borrower.

Before applying for a loan, you should be taking thorough financial records for your business and be tracking your earnings clearly month after month. Ideally, you’ll have been in business for at least 2 years already and will have all of the financial information, bank statements, and records to show that you have a regular income.

While getting a loan is possible without extensive paperwork, it will be an uphill battle if you don’t have the right documents together.

2. Improve Other Financial Factors

When self-employed, it can be difficult to prove your income. Luckily, there are other factors that lenders may also look to for determining your reliability.

One of the top factors is your credit score. Credit scores can range between 300-850 and your score will affect how you look to lenders quite a bit. You need to know your score and learn to understand what it means. If you have a poor credit score, you may want to spend some time building it up before applying for a loan.

Other things that can help you to look more stable and reliable is if you have had a regular address for a long period of time or if you own property. You may want to get documentation to prove some of these other factors as well if they apply to you.

3. Minimize Debts

If you’re trying to get a personal loan when self-employed, you need to make sure that you do anything you can to eliminate any existing debts beforehand. If you have maxed out credit cards or other loans that you’re still paying off out it will make you seem unreliable to lenders and they will be less likely lenders will trust you with their money.

If you can, take some time to knock out a few of your current debts before applying for a new personal loan. If you do, you’ll have a greater chance of getting approved.

4. Sweeten the Deal

There are a few special things you can do that can make it more easy for lenders to trust you and approve you for a loan.

Having a co-signer or guarantor is one of the best ways you can improve your odds of getting approved. However, just make sure that you pay your loan off consistently or someone else may be liable for your debt.

Additionally, it can also be helpful to get a secured loan. With these loans, you’ll need some kind of collateral to put up against your debt such as a vehicle or property. A secured loan can be easier to get approved for since the lender will have a way to cover their losses if you neglect to keep making payments.

5. Compare Your Lenders

Another way you can improve your chance of getting approved for self-employed loans is to make sure that you compare your options thoroughly. Choosing the right lender for your situation can make all the difference when looking for a personal loan.

Traditional bank loans are only one of many options out there for getting a personal loan. Traditional banks will often be pickier than other lenders, so it’s a great idea to consider alternative options.

Credit unions are often a better choice for getting a personal loan and will often be more willing to lend to someone who is self-employed. There are also many online lenders that can be a good option. P2P lending sites can also make a good choice as well.

6. Time It Right

It’s also important to make sure that you’re ready before you start applying for loans. While you may be in need of a loan quickly, if you’re able to wait a bit it may be a good idea.

For example, if your credit score is currently low, then you may want to spend some time to build your score up before applying for a loan. You may also want to wait to apply for a loan if some other parts of your financial situation need some work.

Additionally, it’s also a good idea to wait if you haven’t been in business for yourself very long. Often, lenders like to see at least 2 years of income from self-employed individuals. Waiting until you have at least 2 years of tax returns to show lenders can help improve your chances of getting approved.

7. Be Prepared

While you should wait for the right moment to apply for a loan, once you start seeking a loan you should move fast. This means that you should have all your paperwork, collateral, or anything else that will be required by the lender together and ready.

Ideally, you should be able to move through the application process swiftly with little downtime. Having this stuff together early on can help you be more attractive to lenders and will make you seem more reliable. By having all of your paperwork and other requirements ready early on you’ll have a greater chance of getting a loan in the end.

Improving Your Chances of Finding a Loan When Self-Employed

If you’re self-employed and in search of a personal loan you may be beginning to lose hope. However, be sure that you keep the above tips in mind. By using the tips above, you’ll be more likely to get what you need despite not having a traditional employment situation.

Be sure to consider your loan options thoroughly and get all of your information together before applying. If you do, you’ll be more likely to find a great lender and get the perfect personal loan for your needs.

Stay tuned to our blog for more tips.

Restore Confidence And Health By Reducing Debt Stress

Whether you have a huge medical bill to pay or multiple credit card debts, you will surely face the impact of having too many debts on your physical and mental health. If you are experiencing deteriorating mental health while dealing with your debt there are easy and effective ways in which you can overcome it.

  • There is no point or prudence in ignoring debt and even worrying about it too much without doing any constructive to reduce your debt.
  • At any cost, you will have to make proper arrangements for the repayment of the debt or debts that you have as you are legally obligated to the creditor to do so.

There is no other alternative if you are already in debt but to manage your existing as well as new debt efficiently. This will relieve the mental stress that is the primary reason for deteriorating health.

You can take the help of several charitable organizations available out there that are eager to help out people who are in distress.

Steps to follow

Believe it or not, staying healthy will have an effect on your debt and on the other hand, staying in debt stress will affect your health. Both are interconnected and that is why you should not only address your debt stress but also look for ways to restore your physical health as well. There are a few easy steps to do it but these required diligence and effort.

  • First, you will need to make sure that you are in a peaceful state and have a positive frame of mind when you are in debt. This will help you a great deal to address the debts that you currently have.
  • Since stress can lead to depression and anxiety to varying levels according to the degree of mental stress. It will slowly but surely deteriorate your mental and physical health leading to several ailments as well. In order to ensure that you do not let debt take its toll on your health, you must commit and admit your debt.

Focus on ways in which you can stay fit and healthy, which is a very important aspect that will improve your mental state which is essentially required when you are in debt. If you are mentally fine, you will not panic about your debt and worsen your mental as well as physical health. The simple ways in which you can do this include:

  • Trying eating a balanced and healthy diet which will provide your body with the required energy to work more when you need to earn more
  • Jogging, walking or biking that will act as a good stress reliever and will also improve the quality of your sleep.

Just a little bit of time devoted to exercising you will be stress-free and not worry about your debt.

When you take care of the psychological aspects of debts to stay fit you will not make your debts reach to any unmanageable limits and look for settling with your creditors and run into the risk of damaging your credit score. Remember, such debt relief options will have a serious effect on your credit score. If you go through the different debt settlement reviews you will find lots of people suffered due to this.

Stress does not help

Debt is typically linked with the emotional as well as the psychological aspects of human nature. It is a natural feeling of pride and achievement that people derives when they spend money and it creates a chain reaction that leads to more debt.

  • It is this feeling that affects your spending and in most of the times it is boosted up unnecessarily
  • When you cannot meet your spending needs or arrange for the money to buy anything, you tend to feel depressed and at a loss
  • You then start to look for alternative ways and borrow money or take on further debts and the most common form of such debt is the credit card debt.

That means indirectly this does not help your financial health in many ways at all. Instead, you take on more debt and sink deeper into the quicksand by incurring expenses that are not at all necessary given the present financial condition.

Therefore, try to avoid this safest path to tackle your psychological aspect of debt and refrain from any such impulsive spending. Slowly, this will turn out to be an addiction jeopardizing your health and finance both.

Stay stress-free

If you want to be happy in debt and healthy, you must not let the stress of debt affect you, no matter whatever is the size of it. You may not stay away from the path of debt but you will need to know the ways to deal with the stressful situation yourself> However, there is no shame in taking help of professionals for that matter.

  • In order to stay free from the harmful effects of debt, you will need to keep it manageable always. For this, you may take out a credit card debt consolidation loan to combine the multiple debts into one. This will reduce your worries and stress as you will need to focus on one single debt now.
  • You must follow a planned and strategic process to deal with debt effectively, stay healthy and escape stress and anxiety. When you do so you will see that debts will not affect your personal relationships, professional career or your social bindings.

You must be very proactive with your debt to take immediate action so that the accumulating debt does not affect your thought process compelling you to make irrational and erratic decisions.

Talk with the people you trust about your debts so that you can get better opinions and help when it comes to choosing one feasible option for debt relief amongst many. Remember any delay in taking action will result in chronic health problems such as blood pressure, insomnia and even heart diseases.

It is only these proactive measures that will restore your confidence in managing your debts and your health.

It Doesn’t Have to Be a Money Pit: 5 Hobbies That Make Money

We all have our passions in life, but it seems like there’s no way to make them work for us when it comes to careers. Maybe we even majored in what we love, only to find that nobody needed such skills when we graduated.

Instead, we find ourselves taking ‘safe’ jobs and pushing our loves to the side, but does it have to be that way?

Are there any hobbies that make money? It turns out that there are, and we’ll tell you more about them in the paragraphs below.

1. Writing

Believe us when we say that your Creative Writing degree doesn’t have to just sit on your shelf and gather dust. Skill with words is a great one to have, and you can use it in any number of different ways.

You could start writing a blog, or do writing jobs for other people. They may need anything from product descriptions to speeches. You may even get a job editing the work of others.

The issue that a lot of people run into is that they want to make a living writing fiction. The truth is that while that’s possible, it’s very difficult, and you shouldn’t depend on it as your regular job.

In fact, if you can make your way as a decent author, you may make the equivalent of minimum wage.

2. Online Gaming

There are a few ways you might go about making money with games, and each takes a different approach. For instance, you might want to look into real money slots with slotswise.

You could also try to stream games online using websites like Twitch. Like slots, this can be very unstable, and you shouldn’t make a career out of it until you know that you can. Instead, it may comes in bursts.

You may just stream computer games for a few hours every weekend, but when it comes to hobbies that make money, it may be one of the more enjoyable.

3. Design/Painting

If you have a knack for graphic design or other visual arts, you could use it to line your pockets. After all, every great artist had to start somewhere, so why not paint or sketch at home when you can? You never know what the next great art exhibit is going to be.

Graphic design may be even more promising. The average salary of a freelance graphic designer is around $50 thousand per year, and there seems to be no shortage of jobs out there.

Art of all kinds can even be therapeutic, so money won’t be the only thing you get out of it.

4. Comedy

Are you the funny one in your group? Have you ever thought about becoming a comedian? If you have doubts about whether you can make it, give it a shot.

You’ll never know until you try, and even if it doesn’t work the first time, it doesn’t mean you’re not cut out for comedy. A lot of comedians use improvisational comedy to test their skills first or just get a little more experience.

Finding Hobbies that Make Money

There are a lot of hobbies that make money out there, which is good news for those who are still looking for ways to live their dreams. Dreams are among the most precious things we have in life, so we should never give up, even if we can’t make it our day job right now.

We’ve mentioned only a few marketable hobbies in this article, but there are more out there. If you’re interested, we encourage you to do more research on your own.

If you more information and advice on hobbies and health-related topics, please visit our site. We can tell you about some of the advantages of hunting, if you’re still looking for a hobby to take up.