Freelancers are now getting recognized in the society. With thousands of jobs available, freelancers can take on any opportunity and gain the proper income they want. Even in the lending arena, many loan options are being offered to freelancers. If you’re a freelancer and you want to get a loan, you should think about your borrowing power. Typically, lenders have more requirements for freelancers because the risk is higher. First-time borrowers are only allowed for small amounts because their financial reputation is still building up.
Here are some ways that can improve your borrowing power as a freelancer:
Borrow a Credit Builder Loan
Credit builder loans are typically offered by banks to people who have no credit to begin with. These loans are easy to get, unlike other types of commercial loans. Another advantage of a credit builder loan is the low interest. Some credit builder loans have lower interests than personal loans and salary loans. In turn, credit builder loans have smaller amounts offered.
Reach Out to Community Lenders
Aside from banks, community lenders are great options that you can rely on. These lenders are small stores or offices that lend money to people in the community. If you’re new in the area, you still need to build your reputation. Before borrowing, someone should vouch for you. Make friends in the area, and you can eventually get some valuable loans. This process will take time, so you need to be patient.
Make Smart Purchases
More often than not, we just purchase things out of impulse. If you want to increase your borrowing power, you need to purchase things smartly. Mall items, for example, can give you credit privileges once purchased. These privileges can reflect to your credit rating. There are other perks and privileges that you can avail. Be sure to research about your favorite brands so you can get timely information. Caution – not all privileges can be helpful. Some will cause you to spend more in the future or pay for hidden fees. So, be careful in choosing your privileges!
Once you managed to secure a freelancer loan, you should get the full value of it. Don’t spend the loan on things that you don’t need. It’s wiser to use the loan as investment for different small ventures. Sooner or later, these investments will pay off and you’ll have enough money to repay your loan. Plus, you can stash extra money for your savings!