Personal Loans for Self-Employed With No Proof of Income

Personal loans are attainable for self-employed individuals with no proof of income when they can balance their application with an excellent credit score of 670 or higher.

However, 1099 contractors, freelancers, and gig workers with bad credit history due to past delinquency have two strikes against them. They will have a more difficult time finding a willing lender – especially if seeking an unsecured installment loan.

The same holds for sole proprietors pursuing a cash advance without a credit check. A missing income verification letter makes for two disadvantages.  

Fortunately, viable options do exist when your borrowing qualifications are not ideal.  

Loans for Self-Employed With Bad Credit

Personal loans for the self-employed with no proof of income will be hard to obtain when the individual has a bad credit history and low score. You are starting with two strikes against you.

Therefore, independent contractors, freelancers, and gig workers must find alternatives or unique strategies to gain approval. Meanwhile, 1099 employees with the federal government enjoy special borrowing advantages.

Unsecured Loans

Unsecured personal loans for the self-employed with no income verification are the most problematic when combined with bad credit and low scores.

  • Unsecured means the lender cannot repossess collateral in the event of future payment default
  • Personal loans are installment contracts with fixed monthly payments over a pre-determined period

Unsecured installment loans are riskier to lenders, meaning they approve fewer people with poor qualifications: derogatory credit records predicting high loss rates and no tax returns or bank statements to back up their earning history.

Taking out small personal loans for a mini cash infusion is the best strategy to boost approval odds when freelancers, 1099 independent contractors, and gig workers have two and a half strikes against them.

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Secured Loans

Secured installment loans for the self-employed without proof of income are more solvable when the individual has a bad credit report. The lender can repossess the collateral after default with secured contracts, minimizing losses.

Car Loans

Secured car loans are more feasible for the self-employed without an income verification letter when the individual also has bad credit. The lender can repossess the auto pledged as collateral to recoup losses if the individual defaults on installments in the future.

For example, Uber, Lyft, GrubHub, Shipt, and DoorDash drivers are 1099 independent contractors who need a reliable auto to perform their jobs. They might be able to get a secured car loan without income documentation by showing a consistent pattern of steady deposits into their checking account or debit card instead.

Title Loans

Secured auto title loans are less viable for the self-employed without an income verification letter when the individual has a low credit score. The lender owns the car title and can repossess the vehicle pledged as collateral if the person defaults on future installments.

In this case, our 1099 independent contractors driving for Uber, Lyft, GrubHub, Shipt, or DoorDash should be wary of online auto title loans with no store visits. Borrowing money for personal needs is a poor choice when you put your livelihood at risk.

You cannot drive to make money if the title company seizes your car!

Loans for Self-Employed Without Credit Check

Without proof of income, personal loans for the self-employed will also be arduous without a credit check. This time, you are starting with two different strikes against you.

Therefore, freelancers, 1099 independent contractors, and gig workers need to find alternatives or inventive strategies to gain approval to help with emergency needs such as car repair, medical bills, legal retainer fees, rental apartment deposits, or eviction prevention.

Cash Advance Apps

Instant cash advance apps for the self-employed without an income verification letter can often provide a short-term loan without a traditional credit check. An app is software that an individual can download to a mobile device to manage finances more effectively.

Sometimes, cash advance apps make lending decisions without Experian, Equifax, or TransUnion credit checks. Instead, they tap into non-traditional information on your bank statements (checking, savings, debit).

Independent contractors might get away without an income verification letter from an employer when their checking account or debit card shows consistent deposits from a gig employer such as Rover, Wag, Visiting Angels, Right at Home, Instacart, or Fiverr.

For instance, the Branch cash advance app integrates with many gig-worker employers, allowing their 1099 independent contractors to get faster access to their earnings.

Payday Loans

Payday loans are the traditional place for the self-employed to turn when they need a same-day cash advance without a credit check. However, adding the no proof of income qualifier might leave you in the dark.

Payday loans rely on an agreement that the borrower will repay the money when the subsequent paycheck lands in their checking account or debit card. Without a history of consistent deposits, the lender has no assurance that you can repay the obligation.

Payday loan debt consolidation could become an issue in the future as income verification becomes crucial. The average origination fee of $15 for every $100 borrowed adds up quickly if you have trouble repaying the cash advance in full at the end of the term and roll over the obligation multiple times.