{"id":27170,"date":"2023-02-22T10:07:43","date_gmt":"2023-02-22T09:07:43","guid":{"rendered":"https:\/\/www.lendingstream.co.uk\/blog\/?p=27170"},"modified":"2023-02-22T10:07:45","modified_gmt":"2023-02-22T09:07:45","slug":"bad-credit-loans-for-self-employed","status":"publish","type":"post","link":"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/","title":{"rendered":"Bad Credit Loans for the Self-Employed (Everything You Need to Know)"},"content":{"rendered":"\n<p>If you\u2019re self-employed, you might know that it can be trickier to get a loan. Lenders can be hesitant to give loans to people who are self-employed because their income isn\u2019t guaranteed. <strong>But there are some lenders who\u2019ll work with you<\/strong>. Plus, there are things you can do to improve your chances of qualifying for a loan. Even if you\u2019ve got bad credit.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f30b5b3e285\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f30b5b3e285\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#what_are_bad_credit_loans_for_the_self-employed\" >What are bad credit loans for the self-employed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#how_do_bad_credit_loans_for_the_self-employed_work\" >How do bad credit loans for the self-employed work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#can_i_get_an_unsecured_loan_with_bad_credit_if_im_self-employed\" >Can I get an unsecured loan with bad credit if I\u2019m self-employed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#who_qualifies_for_a_bad_credit_loan_for_the_self-employed\" >Who qualifies for a bad credit loan for the self-employed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#what_can_i_use_a_self-employed_loan_for\" >What can I use a self-employed loan for?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#how_can_i_apply_for_a_bad_credit_loan_if_im_self-employed\" >How can I apply for a bad credit loan if I\u2019m self-employed?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#1_work_out_how_much_you_need\" >1.\u00a0Work out how much you need<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#2_get_all_your_paperwork_ready\" >2.\u00a0Get all your paperwork ready<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#3_check_who_youre_eligible_to_apply_with\" >3.\u00a0Check who you\u2019re eligible to apply with<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#4_compare_loans\" >4.\u00a0Compare loans<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#how_can_i_check_if_im_eligible_to_apply_for_a_bad_credit_loan\" >How can I check if I\u2019m eligible to apply for a bad credit loan?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#1_go_direct_to_the_lender\" >1. Go direct to the lender<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#2_use_a_broker\" >2. Use a broker<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#how_much_can_i_borrow_if_im_self-employed_and_have_bad_credit\" >How much can I borrow if I\u2019m self-employed and have bad credit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#how_can_i_improve_my_chances_of_being_approved_for_a_self-employed_loan_with_bad_credit\" >How can I improve my chances of being approved for a self-employed loan with bad credit?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#1_check_your_credit_report\" >1.\u00a0Check your credit report<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#2_check_for_any_errors_on_your_credit_file\" >2.\u00a0Check for any errors on your credit file<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#3_make_all_your_repayments_on_time\" >3.\u00a0Make all your repayments on time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#4_keep_your_credit_card_balances_low\" >4.\u00a0Keep your credit card balances low<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#5_register_on_the_electoral_roll\" >5.\u00a0Register on the electoral roll<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#can_i_get_a_loan_without_proof_of_my_income\" >Can I get a loan without proof of my income?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#what_are_the_repayment_terms_and_conditions_for_self-employed_loans\" >What are the repayment terms and conditions for self-employed loans?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#what_are_the_benefits_of_a_bad_credit_loan_for_the_self-employed\" >What are the benefits of a bad credit loan for the self-employed?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.lendingstream.co.uk\/blog\/bad-credit-loans-for-self-employed\/#final_words\" >Final words<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_bad_credit_loans_for_the_self-employed\"><\/span><strong>What are bad credit loans for the self-employed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><a href=\"https:\/\/www.lendingstream.co.uk\/loans\/bad-credit-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">Bad credit loans<\/a> for the self-employed are exactly what they say they are.<\/strong> They\u2019re loans to help business owners, or other self-employed workers who have poor credit get the funding they need, when they need it.<\/p>\n\n\n\n<p>Unlike standard loans, which require a <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-is-a-good-credit-score-uk\/\" target=\"_blank\" rel=\"noreferrer noopener\">good credit score<\/a> for approval, you can be self-employed with bad credit and still get a loan. But you\u2019ll have a limited choice of lenders to borrow from.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_do_bad_credit_loans_for_the_self-employed_work\"><\/span><strong>How do bad credit loans for the self-employed work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bad credit loans for the self-employed work in much the same way as any other <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">type of loan<\/a>. You fill out an application with a lender and, if approved, you receive the money you need. You then pay it back in equal monthly instalments.<\/p>\n\n\n\n<p><strong>Lenders offering loans to self-employed people with bad credit look at more than just their credit score<\/strong>. They\u2019ll look at how affordable it is for you. It\u2019s how they try to help self-employed people and when they really need it.&nbsp;<\/p>\n\n\n\n<p>The main difference with a bad credit loan is that you\u2019ll pay higher rates of interest than on a standard loan.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"can_i_get_an_unsecured_loan_with_bad_credit_if_im_self-employed\"><\/span><strong>Can I get an unsecured loan with bad credit if I\u2019m self-employed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you\u2019re self-employed and have bad credit, you\u2019re likely going to find it tricky to get an <a href=\"https:\/\/www.lendingstream.co.uk\/loans\/unsecured-loans\/\" target=\"_blank\" rel=\"noreferrer noopener\">unsecured loan<\/a>. Most lenders prefer self-employed people to have a good credit rating.<\/p>\n\n\n\n<p><strong>You may find some specialist lenders who might lend to you if you can show that your business is strong<\/strong>. Otherwise, you\u2019d need to have an asset to secure the loan against.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"who_qualifies_for_a_bad_credit_loan_for_the_self-employed\"><\/span><strong>Who qualifies for a bad credit loan for the self-employed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To qualify for a self-employed loan, you\u2019ll have to be one of the following.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Operating a business or profession as a sole proprietor<\/li>\n\n\n\n<li>A partner in a partnership<\/li>\n\n\n\n<li>A consultant<\/li>\n\n\n\n<li>An independent contractor<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_can_i_use_a_self-employed_loan_for\"><\/span><strong>What can I use a self-employed loan for?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bad credit loans for the self-employed can be used for a variety of purposes, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Expanding your business<\/li>\n\n\n\n<li>Buying new machinery<\/li>\n\n\n\n<li>Upgrading technology<\/li>\n\n\n\n<li>Covering unexpected expenses<\/li>\n\n\n\n<li>Consolidating high-interest debt<\/li>\n<\/ul>\n\n\n\n<p><strong>If you\u2019re self-employed and looking for financing, bad credit loans could be the right option for you<\/strong>. They could make a difference to your business\u2019 ability to make it through a tough patch.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_can_i_apply_for_a_bad_credit_loan_if_im_self-employed\"><\/span><strong>How can I apply for a bad credit loan if I\u2019m self-employed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The loan application process if you\u2019re self-employed is no different to applying for any other kind of loan. There are some simple steps you can follow.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_work_out_how_much_you_need\"><\/span><strong>1.\u00a0Work out how much you need<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Be clear on how much you need to borrow and the reason you need the money. It\u2019s important that you don\u2019t get into more debt than you have to. The repayments on the loan must be affordable for you to pay back. This is something the lenders will want to see.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_get_all_your_paperwork_ready\"><\/span><strong>2.\u00a0Get all your paperwork ready<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>When you apply for your loan, the lender will ask for some documents from you. It\u2019s important you get these organised as it\u2019ll help your application. The more proof you can provide to show that you can afford the loan, the better your chances of being approved.<\/p>\n\n\n\n<p>Here\u2019s a list of the documents the lender might want to see:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Proof of your name and address<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Documents that confirm you name, and address include the following.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Your driving license<\/li>\n\n\n\n<li>Your passport<\/li>\n\n\n\n<li>Any utility bills in your name<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Information about your company or business<\/strong><\/li>\n<\/ul>\n\n\n\n<p>This would include information about what your business does. They\u2019d also want to know if there\u2019s anyone else who has a financial interest in it.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Proof of your income<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Whatever income streams your business has, you need to show proof of them. For example, if you own and rent properties, have your tenancy agreements on hand. You should be able to show the rental payments you receive too.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Your tax returns<\/strong><\/li>\n<\/ul>\n\n\n\n<p>Being self-employed means you\u2019ll have completed tax returns to HMRC. The lender is likely to ask for your tax calculations which can be found in your HMRC account. You can download a form titled SA302 from there and this will show proof of your income.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bank Statements<\/strong><\/li>\n<\/ul>\n\n\n\n<p>These are a good way of showing what income you receive. But the lender will also want to see these to find out what your outgoings are. It\u2019ll help if you\u2019ve been managing your account well and not going overdrawn.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_check_who_youre_eligible_to_apply_with\"><\/span><strong>3.\u00a0Check who you\u2019re eligible to apply with<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It\u2019s worth checking if you\u2019re eligible to apply for a loan first when you\u2019re self-employed and with bad credit. The best thing about doing this is that it <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/what-affects-your-credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">won\u2019t affect your credit score<\/a>.<\/p>\n\n\n\n<p><strong>When an eligibility check is carried out, the lender or broker will just do a <\/strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/soft-credit-check\/\" target=\"_blank\" rel=\"noreferrer noopener\">soft check<\/a><strong> on your credit file<\/strong>. And soft credit checks won\u2019t be seen by other lenders. By finding out if you\u2019re eligible to apply, it increases your chances of being approved.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_compare_loans\"><\/span><strong>4.\u00a0Compare loans<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Once you know who you\u2019re eligible to apply with, compare the loans on offer. <strong>Being self-employed with bad credit, you\u2019re likely to be offered high interest rates.<\/strong> By comparing the rates and charges, you could save yourself a lot of money in the long run. Choose the one that suits you best.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_can_i_check_if_im_eligible_to_apply_for_a_bad_credit_loan\"><\/span><strong>How can I check if I\u2019m eligible to apply for a bad credit loan?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are ways you can check that you\u2019re eligible to apply for a bad credit loan while being self-employed. The two methods are listed here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_go_direct_to_the_lender\"><\/span><strong>1. Go direct to the lender<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You can go straight to the lender you want to borrow from and find out from them if you\u2019re eligible. What you need to be eligible will be found on their website. <strong>When borrowing with a direct lender you know who you\u2019re dealing and can get straight answers<\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_use_a_broker\"><\/span><strong>2. Use a broker<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Brokers will look at the eligibility criteria of a panel of lenders. You enter your information, and they\u2019ll look to see which lenders you\u2019ll be eligible to apply with. <strong>A soft search may be done to verify you, but this won\u2019t hurt your credit score.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_much_can_i_borrow_if_im_self-employed_and_have_bad_credit\"><\/span><strong>How much can I borrow if I\u2019m self-employed and have bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A self-employed person can apply for a loan for between \u00a33,000 and \u00a3500,000. You can pay it back over a term of between one and 30 years. But this differs from lender to lender, so the amount and term of repayment can vary. The terms of the loan will depend on the following.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>How much you need to borrow<\/li>\n\n\n\n<li>Your financial history<\/li>\n\n\n\n<li>Your business performance<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_can_i_improve_my_chances_of_being_approved_for_a_self-employed_loan_with_bad_credit\"><\/span><strong>How can I improve my chances of being approved for a self-employed loan with bad credit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are things you can do to improve your chances of being approved for a self-employed loan with bad credit. <strong>The main thing you can do is <a href=\"https:\/\/www.lendingstream.co.uk\/blog\/improve-your-credit-score\/\" target=\"_blank\" rel=\"noreferrer noopener\">improve your credit score<\/a>.<\/strong> Here are some tips to help you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_check_your_credit_report\"><\/span><strong>1.\u00a0Check your credit report<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Have a look through your credit file at what\u2019s been reported. Make sure there are no errors on there. <strong>You can check your credit report with the three main credit reference agencies in the UK<\/strong>:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>Experian<\/li>\n\n\n\n<li>Equifax<\/li>\n\n\n\n<li>TransUnion<\/li>\n<\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_check_for_any_errors_on_your_credit_file\"><\/span><strong>2.\u00a0Check for any errors on your credit file<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Make sure that all your details are correct. If you find an error on your credit report, you should get it put right. The way to do this is to contact the credit reference agency and tell them about the error. You do this by raising a dispute with them. They will respond to your request within 28 days.<\/p>\n\n\n\n<p><strong>It\u2019s worth making sure the information on your credit file is correct as it could affect your loan application<\/strong>. For example, an error in your address could stop you from being approved for a loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_make_all_your_repayments_on_time\"><\/span><strong>3.\u00a0Make all your repayments on time<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Making all your repayments on time can make a big difference to your credit score<\/strong>. Paying back your debts when they\u2019re due shows lenders that you\u2019re reliable. It shows them that you manage your money well now even if you haven\u2019t in the past.<\/p>\n\n\n\n<p>If you\u2019ve missed any payments or have been late making them, bring them back up to date as soon as you can. Then always keep on top of them.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_keep_your_credit_card_balances_low\"><\/span><strong>4.\u00a0Keep your credit card balances low<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Lenders prefer it when you\u2019re not borrowing up to your credit limits. It shows them that you\u2019re good at managing your money. <strong>A good amount to borrow would be around 30% of your total credit limit.<\/strong> This will help when you apply for your loan.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_register_on_the_electoral_roll\"><\/span><strong>5.\u00a0Register on the electoral roll<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>If you\u2019re not registered to vote, then consider signing up.<\/strong> It\u2019s a quick way to boost your credit score. By getting added to the electoral register, lenders can more easily verify your identity so it\u2019s an easy way to improve your chances of approval.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"can_i_get_a_loan_without_proof_of_my_income\"><\/span><strong>Can I get a loan without proof of my income?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you want to get a loan when you\u2019re self-employed, you\u2019ll have to provide proof of your income. And if you\u2019ve got bad credit, it\u2019s essential. <strong>This is because reputable lenders must comply with the rules set down by the <\/strong><a href=\"https:\/\/www.lendingstream.co.uk\/blog\/financial-conduct-authority\/\" target=\"_blank\" rel=\"noreferrer noopener\">Financial Conduct Authority<\/a><strong> (FCA).<\/strong> The FCA regulate financial firms in the UK. Reputable companies will register with them, and you can check on the FCA website if they\u2019re registered.<\/p>\n\n\n\n<p>The FCA state that lenders must check that the loan is affordable for you before they approve your loan. To do this, they\u2019ll have to be sure that your income is sufficient to make the repayments. And for this they\u2019ll need proof of your income.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_the_repayment_terms_and_conditions_for_self-employed_loans\"><\/span><strong>What are the repayment terms and conditions for self-employed loans?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Repayment terms on a loan when you\u2019re self-employed will vary depending on certain criteria, including:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If you\u2019re securing your loan against an asset<\/li>\n\n\n\n<li>If you have at least three years of accounts to show<\/li>\n\n\n\n<li>If your business performance is strong<\/li>\n\n\n\n<li>If you\u2019ve got regular cashflow to show that you can afford the repayments<\/li>\n<\/ul>\n\n\n\n<p><strong>If you don\u2019t secure the loan against an asset when you\u2019ve got bad credit it\u2019ll make it harder to borrow<\/strong>. If you can find a loan, the interest rates will likely be higher.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_the_benefits_of_a_bad_credit_loan_for_the_self-employed\"><\/span><strong>What are the benefits of a bad credit loan for the self-employed?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The benefits of a bad credit loan if you\u2019re self-employed is that it can help your business in different ways. You could use it to help grow your business or to upgrade your equipment.<\/p>\n\n\n\n<p>If you get a bad credit loan you could get flexibility on how long you take to pay it back<strong>. Your monthly repayments on a 5 year term will be less than on a 3 year term.<\/strong> But the longer you take to pay it back, the more it\u2019ll cost you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"final_words\"><\/span><strong>Final words<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>For the self-employed, bad credit loans can provide a much needed financial lifeline. It\u2019s true that most lenders prefer borrowers to have good credit scores. But there are lenders who\u2019ll lend to people who are self-employed with bad credit.<\/p>\n\n\n\n<p><strong>Loans for the self-employed can help with business expansion or unexpected expenses<\/strong>. For the self-employed, bad credit loans can provide a welcome source of financial stability.<\/p>\n\n\n\n<p><strong>Disclaimer:<\/strong> The information given above is provided for reference only.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re self-employed, you might know that it can be trickier to get a loan. Lenders can be hesitant to give loans to people who are self-employed because their income isn\u2019t guaranteed. But there are some lenders who\u2019ll work with you. Plus, there are things you can do to improve your chances of qualifying for [&hellip;]<\/p>\n","protected":false},"author":48,"featured_media":27171,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[267],"tags":[],"class_list":["post-27170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-loans"],"_links":{"self":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27170"}],"collection":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/users\/48"}],"replies":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=27170"}],"version-history":[{"count":1,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27170\/revisions"}],"predecessor-version":[{"id":27172,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/posts\/27170\/revisions\/27172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media\/27171"}],"wp:attachment":[{"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=27170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=27170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.lendingstream.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=27170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}