Self-Employed? Here’s What to Know About Qualifying for a Personal Loan
12/3/2025
2 minute read
The entrepreneurial spirit is alive and well. Gig workers, freelancers, consultants, independent contractors, small business owners — you all contribute to a growing number of self-employed workers contributing to our communities.
But how do you qualify for a personal loan while self-employed?
Whether you need your car repaired or you have household expenses to cover, you have the same access to personal loans as traditionally employed workers.
Understanding what lenders look for and what documentation you need can make the application process smoother.
How Lenders Evaluate Loan Applications
Lenders consider multiple factors when reviewing loan applications, including:
Credit score: Generally, a three-digit number that represents your history of borrowing and repaying debts.
Income: Reliable cash flow from sources like payments for services, sales, government benefits, small business and investments.
Debt-to-income ratio (DTI): The percentage of your pre-tax income that goes toward paying your monthly debt payments.
Personal loan underwriting requirements focus on the likelihood of repayment, not just your job type. Further, underwriting requirements for self-employed applicants are no stricter than requirements for traditionally employed applicants.
How to Get a Personal Loan With Variable Income
All borrowers (traditionally employed, self-employed, or even retired) must show proof of income for a personal loan. While traditionally employed borrowers can use pay stubs, self-employed borrowers may not receive paystubs and are more likely to have variable income, so they may need to provide:
Tax returns
1099 forms
Bank statements
Invoices
Bookkeeping reports
Other verifiable documentation of income received
A combination of the above
The income verification process is less concerned with the documentation type and more concerned with the documents showing clear and consistent earnings over time.
Why Lendmark’s Personal Approach Matters
At Lendmark Financial Services, applications are reviewed at the local level, within your own community, by people and systems that consider your full financial picture.
Our “brick and click” model allows us to serve members of the community both in-person and online, so you can reach out in whichever way you’re most comfortable with.
Preparing for a Smooth Application Process
There are a few steps you can take in advance to help the loan officer better understand your situation and make the application process run smoothly:
Gather your proof of income. Collect your recent bank statements, 1099s, tax returns, and any other documentation confirming your income.
Check your credit report. You are entitled to free annual credit reports so you can confirm that the information on your report is correct.
Calculate your DTI. Divide your total monthly debt payments by your gross (pre-tax) monthly income to determine your DTI.
Explore Personal Loans for Self-Employed Workers With Lendmark
Whether you’re ready to check for pre-qualification today or you simply want to discuss your personal loan options with a knowledgeable lender, Lendmark is here to serve you. Call or pop by your local branch or contact us online today!
Disclaimer: The content provided within this article is for informational purposes only and is not intended as financial, legal, or professional advice.
All loans are subject to credit approval, income verification, and normal underwriting standards, which include assessing your ability to repay the offered monthly loan payment. Minimum and maximum loan amounts, interest rates, terms, and loan fees are subject to specific program guidelines available in your state of residence and may change without notice. Available cash amounts may vary. Collateral requirements may apply. Active-duty military, their spouse or dependents covered by the Military Lending Act may not pledge any vehicle as collateral. This offer may not be valid if you opened a loan in the past 60 days. Your credit report will be accessed before opening a new loan account.
