In 2022, 13% of employed people in the UK were all self-employed. Sure, there are ups and downs to this. However, people have reported they would love e being self-employed than work for wages.
Of course, all jobs are good, and they have their ‘particular perks’. The inclusion of self-employment might contribute positively to the competition of job seekers as well. It really does not matter if you are self-employed or you are employed as long as you can supply your needs with money and also get to save it sufficiently.
If we want to talk about work satisfaction, then self-employment may come into more clarity. A day job can just give you an assignment. But a self-employed venture will provide you with the work to the extent you want. There will be challenges. However, success will follow if you are consistent.
Although you are a self-employed person in the UK, you can still have a bad credit score. That’s okay. You may fix it with the help of some advanced strategies. One of them is considering bad credit loans from a direct lender website such as ours. In this post, we have given you a little information on bad credit loans and the connection of self-employment with it, which might make the deal faster for you. If you are looking for a bad credit loan being self-employed, and you have time, then read this post until the last.
What Bad Credit Self-Employed Loans Are
When we speak of a direct lender service, the term bad credit self-employed loans refers to a general unsecured loan for bad credit. You are thinking right. Self-employment is a mode of employment, and we accept it as an official source of your income. With that being said, you can consider any unsecured bad credit loan to help you out.
You do not have to include collateral for this loan. This means you no longer have to bring anything of your business assets to get the loan approved. You do not have to wait for a guarantor.
But all these perks…are they accepted when you are self-employed? Does it mean anything to the lenders? What do the lenders want to offer you such a loan? We can find the meanings of these questions in the next point.
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What does Self-Employment mean to a Lender?
For you, self-employment means the kind of income generated completely by yourself. You do not have to depend on one or more employers for your income. You are your employer, and you ultimately earn money through your endeavours.
Kindly note that passive income may not be considered self-employment because passive income is generated organically without considerable effort. When we speak of employment and even if the self generates it, it must include endeavours.
To a lender, self-employment is but a form of employment, and that is it. It is a means of your earnings. If you want to take out money using your self-employed venture, then all you need to do is make it evident. The direct lenders will always require proof on paper of your current income and that the work you do is live. If you can qualify for this just by sharing your income details with the lenders, then a bad credit loan can be yours in a day.
Usually, self-employment means a business. However, part-time or freelancing ventures may also be counted as self-employment. You should speak to us and tell us your income policies to let us help you with the self-employed loan you are looking for.
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Why a Bad Credit Score Will Not Be a Problem to Direct Lenders
As mentioned earlier (or you probably know), unsecured bad credit loans from any direct lender will reach you if you are transparent with repayment. Show us your income details; get a loan that you can afford and let us run a soft credit check only to understand your financial behaviour and then take out the loan.
Although these steps are mentioned, the income statement is the essential thing that helps the loan approval. If you can repay the loan and that is too comfortable with your income, then it really does not matter what your credit score is or in what condition it is.
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Will the Self-Employed People Get Extra Perks on Repayment?
In most cases, self-employed people are going to get a good response from direct lending practices. And it is because we, as direct lenders, treat all our borrowers equally. If you want to take out a bad credit loan while being self-employed, then you need to tell us about your income and let us know how much you earn. We can offer you interesting and comfortable repayment perks only when you are frank with us about sharing your income details.
Self-employment is ultimately employment that can get you the right loan you are looking for. To understand your borrowing privileges, you must find out whether you can repay the amount of money you have applied for as a loan. Use a loan calculator to get a fair understanding of this. Then, let us help you with easy repayment packages that best suit your needs.
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To Conclude: Will A Bad Credit Loan for the Self-Employed Do Good to My Credit Score?
We at, Onestoploansolution, always advise our borrowers that a bad credit loan is a fantastic opportunity to improve your credit score. Believe it or not, it works like magic, and you will love it.
When you take out a loan after learning of its affordability, take sincere steps to return the money to your lender. If you do that, your credit score will improve organically. Smartly using the money from your bad credit loan, such as paying off your previous lenders, might help to improve your credit score even more.
Talk to us or write to us anytime for assistance. We will help you in the best possible ways we can. We are available 24 x7 for our borrowers.
Mark Williams works as one of the Loan Advisors at a direct lender firm, Onestoploansolution. He has been working with the lender for about 15 years. He has been known to facilitate his employer in remarkable ways from writing to consulting and whatnot. He is a professional who wants to explore more of the UK financial market, the loan products and how customer requirement changes with time.
