Payday loans as the name suggests are signature loans lent as cash advance loans to people on payroll. These loans work as very small personal loans which are extended to only those who are on a fixed salary. And the amount is extended till your next pay day.
Those who are not working on a fixed income may find it a bit difficult to avail a payday loan. There are many popular myths and wits that make it nearly impossible for a self employed or part time employed to consider payday loans.
Popular Myths and Wits
Being a self employed you get a lot of flexibility and advantage in setting up your work life balance. However the convenience of choosing your clients does not help you when it comes to borrowing funds. Unlike full time employed, monthly income of self employed is not stable. The work flow is never the same and so is the cash flow.
Credit bureaus while evaluating your credit credibility would not rate you at par with full time employed individuals. They mark your income potential as risky.
The Reality Check
But unstable income doesn’t make you ineligible for payday loans. A lending company always wants to evaluate your repayment capacity before extending the funds. Whether you are working full time, part time or on a contract, it is important to establish your repayment capacity.
From government benefits to interest/revenue earned from investments or tenants, can also be use as a potential income base to raise a loan.
Seek Professional Help
However many individuals could find it difficult to do the same. You may need a professional help to establish your income proof. For, different lenders have different requirements. Besides a lot of loan sharks are also active in the UK market. Many even charge multiple hidden charges with payday loans.
When you need urgent payday loans it is recommended to use a loan broker’s advice to get access to the available lenders dealing with payday loans for self employed. Brokers are loan intermediaries who act as middlemen between lenders and borrowers. They help borrowers find the customised loans according to their credit situation.
They are experts in evaluating loan profiles of borrowers. Whether you have less than perfect credit score or lack stable income source, they can help you locate a payday loan for you.
Payday loans being signature loans are available with the least hassles. The loan eligibility is not dependent on your past credit history. You do not need guarantor or collateral for loan approval either. Being a self employed, the broker can help you establish your credit worth using your past bank statements or previous year’s income.
As long as you could afford the loan, the broker can help you qualify for it. Your full time or part time employment status is not going to affect your loan application when correctly processed. A broker can help you protect against the lenders who raise hard credit checks and quote very high interest rate. Whatever be your loan hassles, use the professional loan expert’s advice to make an informed decision.