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Adolph Pyke 23-02-21 10:32 view337 Comment0

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How to apply for a Personal Loan when You're Self-Employed

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How to apply to get a personal loan If You're self-employed
Prepare yourself with income tax forms, statements from banks and other documentation that proves your earnings.


Updated on Sep 21st, 2021.

A majority of the products featured here are provided by our partners, who pay us. This influences which products we feature and where and how the product appears on the page. But, it doesn't affect our assessments. Our opinions are our own. Here's a list and .



A could be an option if you want to consolidate high-interest debts in one payment per month or finance a large project like a home renovation. But getting a personal loan is a little more complicated if you're self-employed. The reason is that the lender might need proof of your income during the process of applying.
For a lot of applicants, that requires submitting W-2s from their employers. If you're self-employed, you don't have W-2s. However, getting personal loan for self-employed people is possible. You'll just need to have several documents prepared to hand if the lender asks for these documents.
Information to be prepared when you apply for an individual loan
A typically will ask for:
Personal information, including your contact details at home, birthdate, Social Security number and citizenship status.
Information on financials, such as the annual income, sources of income, and monthly housing expenses and the amount of debt.
Information on employment including your employment status, current employer, and the length of time you've been working there.
Request for information on the loan, including the reason for the loan and the amount you seek to take out.

Certain lenders let you pre-qualify for personal loan, meaning you can find out what loan terms you'd qualify for without a . It could mean the temporary damage to your credit score while you evaluate the alternatives.
>> MORE:
How can you prove the self-employment income of a self-employed worker?
When the lender reviews the loan application, it will need additional proof of information about your income that you gave them. This is where it pays being prepared especially in the case of self-employment.
Have these documents on hand to show your self-employment earnings:
Federal tax returns for the last two years, including the schedules and all of them, .
1099s for the two previous years.
Bank statements.

These documents can also be helpful in the event that your income comes from more than one source such as freelance or contract work with several clients.



Author bios: Sara Rathner is a NerdWallet credit and travel expert. She has appeared as a guest on "Today" show, Nasdaq along with CNBC's "Nightly Business Report."







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