October 30, 2018
An increasing number of Americans are shunning traditional employment and are choosing to work from home. Quartz reports that in 2017 8 million U.S citizens worked from the comfort of their own property. This figure is up by 1.9% compared to rates in 2000. However, the one thing that home workers often report is difficulty in gaining credit so that they can expand their home business and still enjoy the finer things in life. But, so long as you follow these tips, you’ll never have to worry about being able to secure credit again.
Keep thorough accounts
When you’re applying for credit, providers will want to see that you have a steady income that remains consistent each month. However, when you’re running your own business, your income can significantly differ from month to month. Therefore, it’s important to keep thorough accounts which show how well your business is thriving. Lenders will be interested in seeing two years’ worth of accounts when you apply for credit. So, it’s essential your paperwork is in good order and shows your business accounts off to their best before you submit your application.
Maintain a healthy credit score
There will be times when after reviewing your financial situation, you determine that you need to borrow cash to fund an expense, such as a new piece of equipment for your business. Credit cards are commonly used across The States, with the U.S Census Bureau estimating that 183 million Americans own one. One of the biggest benefits of taking out credit is that it allows you to boost your credit score, so long as you meet your repayments. Thankfully, there is good news just around the corner for home workers with weak credit or little credit history as a new system is set to be tested next year which aims to improve credit scores across the board.
Save hard & seek out the right deal
If you’re one of the 40% of Americans that don’t own their own home and fear you’ll never qualify for a mortgage while you’re working for yourself, then fear not. By saving hard and getting a substantial down payment together, you’re more likely to be accepted as lenders will see you’re willing to put your own cash on the line. Meanwhile, CNBC reports that the trick is knowing where to apply for such credit. There are lenders who accept bank statements rather than W-2 forms as proof of income. This makes it far easier for the self-employed to get accepted for the credit they require.
An increasing number of individuals are opting to work from home. However, it’s essential you take steps to protect your finances so that when it comes to applying for credit, you’re accepted. Therefore, ensure you keep thorough accounts, maintain a healthy credit score and save as much of your cash as possible.