When you work as a freelance writer sometimes it might be difficult to get approved for a loan. Some banks are a little worried about lending money for a loan to self employed individuals. We know how hard it is as a freelance writer to get enough projects each month in order to make ends meet. You may be wondering if it is even possible to get a loan unless you’ve been a successful freelance writer for about three to five years. Someone out there will give you a yes to a loan even when most everyone else says no. It may be wondering how that is possible even with or without good credit. Since you are self employed make sure to bring a copy of tax information. Here are 5 tips to help freelance writers to get approved for a loan.
1. Show a long payment history on one major bill. Make sure that you can show that you have been paying on a major bill such as a house or even a car payment each month for a year or longer. Banks want to see a pattern that you can pay major bills on time. They look at bigger bills more than they do little bills. If you don’t have a house payment then make sure to bring in a statement from your landlord if you have paid your rent on time each month.
2. Show You Don’t Move From House To House. People feel more comfortable lending money to people that are stable and don’t move around from house to house a ton of times. If you can show that you have lived at the same address for about five to ten years then it shows you are stable and that you aren’t a flake.
3. Make Sure To Have Accounts Paid On Time On Credit Report. If you have good credit and a good credit score then that goes in your favor. If you have bad credit then make sure that you keep some of the accounts in good standing such as a mortgage or car payments. When you have bad credit you can still get a loan in some cases when you show that you are responsible enough to pay the most important bills each month.
4. Bring In Letters From Clients. Make sure to bring in letters from your clients with a statement saying how long you have worked with them and how long they still plan to give you work. It will make the bank feel better in lending you money if you can show to them that you will have enough projects to get paid enough money. The more letters the better chances you have of getting approved for a loan. Banks mostly care about how you are able to pay them back and if you are able to pay them back on time without being late.
5. Have Large Amount Of Money In The Bank. Make sure to have a large amount of money in the bank. You may be wondering why would you want to keep large amounts of money in the bank when you want a loan. One thing to remember that when you have large amounts of money in the bank that it shows to them that you have money. A bank can give you a loan if you have large amounts of money in the bank. They can lock the money into a account to use as collateral in order to get paid back if you don’t pay them the money from a loan that they give you.
Some banks won’t give some self employed people a loan depending upon how long you’ve been in business and a variety of other reasons. Make sure to always try to get a loan from the smaller banks in your local area. Little banks are more willing to give you a loan than other ones. Don’t get discouraged if you have a difficult time getting a loan from a few banks. Keep trying to get a loan from different banks because sooner or later one of them will give you a yes to getting a loan. Good Luck!