Hard For Self-Employed Author To Get A Loan

Truegho
Truegho Posts: 832 Forumite
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in Loans
Why is it so hard for a self-employed author on an annual income of no more than £4000 per year to get a personal load of even £1000? I am fed up with getting invites from my credit card company to apply for a loan - only to get knocked back once I give all my details.

Is it primarily because I am a self employed person on a low income?
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Comments

  • thriftylass
    thriftylass Posts: 3,981 Forumite
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    I'd guess it's more to do with the low income. If you only earn about £300 a month they might find it hard to believe that you can live of that and pay back a loan.
    DEBT 09/23: CC 6347 5120, Other 1763 NSDs 0/20 Planned debt free date: Dec 2024
  • BorisThomson
    BorisThomson Posts: 1,721 Forumite
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    They'll assume that a) you don't have the disposable income to pay it back, and b) you're not in meaningful employment.

    Have you looked for employment that pays you enough to live on?
  • sourcrates
    sourcrates Posts: 28,833 Ambassador
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    Truegho wrote: »
    Why is it so hard for a self-employed author on an annual income of no more than £4000 per year to get a personal load of even £1000?

    How do you mange on such a low income ?

    I would say borrowing money you would struggle to repay, may not be the best of ideas.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Truegho wrote: »
    Why is it so hard for a self-employed author on an annual income of no more than £4000 per year to get a personal load of even £1000?

    I believe the clue is in the question.
  • Truegho
    Truegho Posts: 832 Forumite
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    BorisThomson wrote: »
    They'll assume that a) you don't have the disposable income to pay it back, and b) you're not in meaningful employment.

    Have you looked for employment that pays you enough to live on?

    I have looked for another job for AGES. But the problem is I live in an unemployment blackspot, where HUNDREDS are chasing each vacancy and consequently I rarely get a reply from an employer. It is very demoralising and depressing.
  • Caz3121
    Caz3121 Posts: 15,541 Forumite
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    have you checked out if there is a local credit union? you will likely have to save first before you can borrow but with your limited income you will be limited with lenders so it may be an option
  • BorisThomson
    BorisThomson Posts: 1,721 Forumite
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    Truegho wrote: »
    I have looked for another job for AGES. But the problem is I live in an unemployment blackspot, where HUNDREDS are chasing each vacancy and consequently I rarely get a reply from an employer. It is very demoralising and depressing.

    Have you looked at moving, or other self employment? Are you in receipt of any benefits?
  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Truegho wrote: »
    I have looked for another job for AGES. But the problem is I live in an unemployment blackspot, where HUNDREDS are chasing each vacancy and consequently I rarely get a reply from an employer. It is very demoralising and depressing.

    Thought about moving?

    Or whilst you have a lot of free time, utilise it to retrain in another career / get some qualifications?
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • Shakin_Steve
    Shakin_Steve Posts: 2,700 Forumite
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    BorisThomson wrote: »
    Have you looked at moving, or other self employment? Are you in receipt of any benefits?
    Yes. State benefits would give you more to live on than this, even at the lowest rate for a single man.
    I came into this world with nothing and I've got most of it left.
  • Shakin_Steve
    Shakin_Steve Posts: 2,700 Forumite
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    Or........are you saying that you are not allowed to earn more than £4000 without your benefits being affected?
    I came into this world with nothing and I've got most of it left.
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