Payday loans are a quick way to get emergency funds at the last minute. Although the fees and interest rates for payday loans can be incredibly high, many individuals need them for medical emergencies, last minute expenses or auto problems. It is a common misconception that in order to be eligible for a payday loan, you have to have an employer. Self-employed individuals can also receive payday loans in some circumstances. In order to receive a payday loan if you are self-employed, be sure to have one or all of the following five things on hand:
1. Proof of Age
Regardless of your employment status or income, every payday loan company will require applicants to show proof of their age. It is illegal to grant payday loans to anyone under the age of eighteen. Some companies will also ask for proof of your address to guarantee that you live within the state. Bring along your driver’s license or passport to prove both age and address in order to receive a payday loan.
2. Tax Returns from Previous Years
It can be a challenge to prove that you are self employed and able to bring in enough money to repay any potential payday loans. Lenders will want to ensure that you have a viable and legal way of earning money in order to pay them back in the future. You can bring in your tax returns from the previous years if you have been self employed for a long time. This can prove your reliability and the fact that you are able to earn money without an employer.
3. Bank Statements
The simplest and often most effective way to prove that you are self employed and bring in a reliable income is to show potential lenders your recent bank statements. By seeing that you are regularly bringing in money, they are more likely to grant you a payday loan for the requested amount. Try to show your bank statements for at least the last three or four months to convince payday lenders of your reliability.
4. Freelance Contracts
You might have a contract with certain companies promising certain jobs, tasks or incomes. A self employed writer might have contracts with certain newspapers or websites outlining pay and future jobs. This can be used when applying for a payday loan in order to show that you are indeed self employed and have a consistent form of income. Bring in any freelancing contracts as further proof of your anticipated income over the next few months.
5. Business Cards
Many payday lenders can be suspicious of self employed applicants because some people claim to be self employed when in reality, they are unemployed. To prove that you do in fact have your own business, bring along any proof of that fact. This can be something as simple as your business cards or even a web address for your company or freelancing website. Any and all proof of this kind should be brought in and submitted with your application.
By bringing these five things with you when you apply for your payday loan, the lenders are more likely to grant you the requested amount of money even if you are self employed.
About the Author: Guest author Donald Kyte is a personal finances guru and freelance blogger writing for paydayloan.org.uk.
Image: rinkjustice / Flickr
