Why It’s Harder to Get Credit When You’re Self Employed

Why It’s Harder to Get Credit When You’re Self Employed

Between the gig economy, entrepreneurship and other forms of self-employment, more and more Canadians are becoming their own boss. And why not, really? This type of career comes with plenty of benefits, from scheduling flexibility and professional autonomy to greater creative fulfilment and more. However, there are some unique challenges to self-employment that should be acknowledged along with the perks. As a contract worker, freelancer or other self-employed individual, your income may be inconsistent or occasionally unstable. This can make it difficult to plan for everyday expenses, let alone unforeseen financial challenges. Furthermore, it can create a barrier to accessing credit such as a mortgage or personal loan.

We all need a safety net and peace of mind, and sometimes, that means having access to emergency funds in the form of credit. A credit card can be fairly easy to get, but they often come with high interest fees and low limits. A personal loan is typically a far better option, but if you’re self-employed, there may be a few hurdles. […]