Self Employment - Not All What It's Cracked Up To Be

[Whogister]

I am so tired of this crap.

I have a friend that works at McDonalds and he gets approved for a new car loan. I make 10x's the money he does and I go in for a loan app and as soon as I mention self employment you can literally see every cringe. The guy taking the loan was already talking like I have been declined without even a chance, as if he doesn't even want to bother submitting the app.

Am I better off closing down my business and living in a cardboard box on the side of the road? Maybe I should ask McDonalds if they are hiring burger flippers for minimum wage?

Anyways, I should find out in a couple of hours...
Wish me luck!

:td:

 

[deet]

Good Luck!

A new car just means another bill every month.
Save your cash & go buy a better looking ride used with no payment.

sure a nice car looks good but debt free is the key especially in this economy.

 

[Whogister]

That's one positive way of looking at it I guess...

 

[BrainPower]

if your an llc, one trick that helps is to declare that LLC as an S Corp. The S Corp pays you a salary (technically employed, paying employee tax).

But yes, self employed in this market is a cringer

 

[shockie]

save save save! even if a consistent high self-employed income isn't enough to impress the loan app people, at least you'll be fattening up your bank account. you could probably save enough for a used car in less than a year.

also, loans and credit should be used for convenience purposes as much as possible, not because you want to buy something that you don't have the money for.

 

[DebX420]

What you do is get a part time job at a place like McDonalds, somewhere with really flexible hours, and tell em you work there, and make no mention of you working at home, or work for someone who owns a legit business doing the same thing as you, and then apply Loopholes rule :D

 

[Ross]

This is pretty much the only reason i keep my day job, along with the benefits !

 

[GF]

You can prove your income by showing your last 2 years' tax returns and showing your earnings as a shareholder/member in your corporation or LLC.

Sorry to say, but the guy taking your loan app is an idiot.

-Galel

 

[holyroller]

What you do is get a part time job at a place like McDonalds, somewhere with really flexible hours, and tell em you work there, and make no mention of you working at home, or work for someone who owns a legit business doing the same thing as you, and then apply Loopholes rule :D

I use to use an umbrella company, I paid myself through them and effectively get on there books as an employee. You get proper payslips, and they will even give a reference stating when you started working for them and your salary. From a legal standpoint, you are employed by them. I did it for three months so I could get a mortgage.

 

[whitebark]

You can prove your income by showing your last 2 years' tax returns and showing your earnings as a shareholder/member in your corporation or LLC.

Sorry to say, but the guy taking your loan app is an idiot.

-Galel

Just what I was thinking.

 

[Whogister]

Ya, I said I have back tax returns, bank statements, etc...
The guy still acted like it was a sin that I was self employed.

Still haven't heard back from him... probably not a good sign.
They usually hunt you down immediately if you are approved.

 

[Phoebe_]

Could be the bank guy just isn't sure of your job's stability that's why he declined you.

 

[snoop]

I have a friend that works at McDonalds and he gets approved for a new car loan. I make 10x's the money he does and I go in for a loan app and as soon as I mention self employment you can literally see every cringe. The guy taking the loan was already talking like I have been declined without even a chance, as if he doesn't even want to bother submitting the app.

They have done you a huge favour. The bank is probably used to the burger flipper types coming in and probably get thrown people with 'out of the norm' incomes asking for a loan. It is a bit like going to the soup kitchen in an Armani suit, they'll throw you straight out. :hehe:

 

[Whogister]

I'm not sure if I wasn't approved yet... but usually they know pretty quick and hunt you down if they approve you. I never heard back from the guy. I will call tommorrow afternoon if I don't hear back in the morning...

I'll definitely tell the guy what I think if I was declined and he just didn't call me back.

 

[Keral_Patel]

Hmm quite different story in our parts. Here bank people are chasing me down to offer a loan but I don't want it. If you are self employed and are paying nice tax and filing it all in order then your record surely speaks for itself.

Infact over here I have to tell them that if their bank needs a loan I can offer them one. But I don't want one from them :D