When you’re self employed, the need for cash can sneak up on you. Self employed loans with no credit check can offer advantages. Here’s what you need to know.
There are dozens of advantages of being self-employed. You are your own boss. You also get financial benefits, such as tax deductions for business expenses.
One of the few downsides is that it’s hard to obtain a loan. The number of self employed people is expected to grow by 2026, yet self-employed people are turned down for mortgage loans and many other types of loans.
You can get self employed loans with no credit check. Read on to find out some of the surprising benefits of these loans.
Why Are People Turned Down for Self-Employed Loans?
Self-employed people are usually turned down for loans for a few common reasons. The first is that they have to prove their income. As you’re well-aware, your income has its ups and downs and is very difficult to predict.
The second reason why is that many self-employed people use credit cards to finance purchases in the business. This can raise your credit utilization rate, which causes your credit score to drop.
Self-employed loans with no credit check allow you to get by these challenges. It’s understood that your income will have its ups and downs and there’s no credit check. Here are some other benefits.
1. Fast Approval
Since these loans don’t have a credit check, they get approved much faster than a traditional bank loan.
Traditionally, you have to wait for days or even as long as a week or two to get approved.
This company will give you an answer within one business day. The money is deposited into your account shortly after you’re approved.
2. No Credit Check Equals Good Credit
Believe it or not, when a lender checks your credit score, your credit score will drop a few points. That’s because they do what’s called a hard credit pull. That type of inquiry will show up on your credit report.
If you have more than 1-2 checks a year, your credit score will drop and those inquiries stay on your report for a year or two.
Since no credit check loans don’t pull your credit score, you don’t need to be concerned with a drop in your score.
3. It’s OK to Have Bad Credit
A no credit check loan means that you can get a loan even if you have bad credit. They’re a great alternative from meeting the very high standards of banks. That makes getting access to cash when you need it much easier.
Self Employed Loans Are Attainable
The world is changing fast, and so is the ability for self-employed people to get loans. You weren’t meant to do things like everyone else, that’s why you started your own gig.
Banks try to fit you in a standard box, which doesn’t work. There are lenders who bypass the traditional bank model and offer self-employed loans with no credit check. This makes getting access to money much easier.
Do you want more self employed tips? Head over to the Gig Economy section of this site for more great articles.
Samantha Acuna is a writer based in San Francisco, CA. Her work has been featured in The Huffington Post, Entrepreneur.com, and Yahoo Small Business.