Written by Jasir Jawaid
Getting a personal loan when you're self-employed can be a slippery slope. For one, no employer is handing you W-2s that provide proof of consistent income and help lenders sleep better knowing you can repay the money. As a result, lenders may be ambivalent about giving you money because your credit score and income are just some of the factors at play here. You can generally expect to jump through a few extra hoops than someone with a W-2.
But if you're self-employed, being short on cash can at times be an unavoidable occurrence. If you're in a pinch, a personal loan can help you come out of it unscathed. Yet, at the same time, debt can make it more challenging to manage cash flow. But before you sign any documents, you should consider all options, including whether a personal loan is even the right choice or not.
This article was published on JoyWallet and can be read here in full.