How to apply to get a personal loan when You're self-employed

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How to apply for a Personal Loan if you are self-employed
Make sure you have a copy of your taxes, bank statement, and other documentation that proves your earnings.


Updated on Sep 21st 2021

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A could be an option if you want to consolidate debts with high interest into one monthly payment or finance a big project, such as a renovation of your home. However, getting a personal loan could be more complicated if you're self-employed. That's because the lender may require documents to prove your income during the application process.
For a lot of applicants, that means providing W-2s from their employers. If you're self-employed, then you don't have W-2s. Still, applying for an individual loan if you're self-employed is possible. You'll need various documents in order to submit in case the lender requires the documents.
The information you need to provide when you first make an application for personal loan
A usually will ask for:
Personal information, including your home contact information birthday date, Social Security number and citizenship status.
Information on financials, such as the annual income, sources of income and monthly housing costs and debt obligations.
Employment information including your employment status, your current employer, and the length of time you've been working there.
Information on loan requests, including the purpose of the loan along with the loan amount that you wish to take out.

Certain lenders let you pre-qualify for a personal loan that means you can see what loan terms you'd qualify for without having to apply for a . It could mean the temporary damage to your credit scores as you evaluate your alternatives.
>> MORE:
How do you prove income earned from self-employment?
When the lender reviews your loan application, it will require additional proof of the income information you shared with them. This is the reason it is important being prepared particularly when you're self-employed.
Have these documents on hand to show your self-employment earnings:
Federal tax returns from the past two years, which includes the schedules and all of them, .
1099s from the last two years.
Statements from banks.

These documents are also helpful in the event that your income comes from multiple sources for example, freelance or contract work for multiple clients.



About the author: Sara Rathner is a NerdWallet credit and travel expert. She has appeared in the "Today" program, Nasdaq along with CNBC's "Nightly Business Report."







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