Gig Worker Loans

Are you a gig worker? Congrats!! You're in the rapid growing industry in the USA

Here are some interesting facts about gig economy in the United States:

• Around 36% of US workers (approximately 57.3 million people) were part of the gig economy before the pandemic (Gallup, Statista).
• The gig economy grew by 33% in 2020, expanding 8.25x faster than the US economy (Small Biz Trends).
• The USA contributed 44% of the global gig economy (Mastercard).
• The gig economy generates $204 billion in gross volume (globally), with transportation-based services comprising 58%.
• There are more men (31%) employed in the gig economy than women (18%)
• For 44% of gig workers, their work in the gig economy is their primary source of income (Edison Research).
• 64% of full-time workers want to do "side hustles" to make extra money (Deloitte).
• 79% of full-time independent workers say they're happier working independently than at a traditional job (MBO Partners).
• 1 in 6 traditional job workers would like to become an independent earner (Upwork, McKinsey).

Why it is hard for gig workers to taking out a loan?

Did you know that many gig workers in the US need help to gain approval for financial products like loans or mortgages? Yes, it is a bitter truth. According to an independent survey, gig workers are concerned that current economy tremors and high inflation will impact their ability to get loan approval.

The reasons behind struggling gig workers are not because they can't afford the loan, but the problem is the tendency of banks and other financial institutions that see gig workers as high-risk borrowers. Some responsible factors are:

• Most of the time, gig workers are not paid on time.
• Gig worker's income could be more predictable as compared to traditional employees.
• Even big companies participate in the gig economy but do not offer benefits packages and insurance to gig workers.
• Gig workers work for various clients daily. Sometimes, clients may pay late or, in some cases, not pay a single penny.
• Other factors like low income, poor FICO score, and high debt-to-income ratio are also responsible for gig workers being denied a loan or other credit products.

The above significant factors result in gig workers facing difficulties or being denied when applying for a loan.

Can gig workers get loans?

Yes, most of the conventional lenders are more willing to work with applicants with a regular income from full-time employment. However, freelancers, self-employed, and gig workers can qualify for a loan. However, it would help if you showed that your income is relatively consistent and you can repay your loan on time.

Here is GigsCheck; we have specialist private lenders who are always ready to financially help those struggling to get loan approval from traditional banks. Usually, such lenders offer personal loans, payday loans, and installment loans in the form of loans for gig workers.

5 steps to take before applying for gig worker loans

Due to uncertain gigging income and the unfaithfulness of banks, it is difficult for gig workers to borrow money ASAP, unlike a guy working in traditional employment. Limited options are available to get gig worker loans, so choosing the right one is very important.

So, what should you look for before choosing the best loans for gig workers? GigsCheck helps you by showing some features that gig workers must see before applying for a gig loan.

• Review your finances before applying for a loan.
• Compare lenders to crack the best deal.
• Check the lender's requirements.
• Double-check your application for errors or missed information.
• If you are rejected for a loan, avoid applying back-to-back within a short period.

GigsCheck has 40+ lenders specializing in short-term loans for gig workers, freelancers, independent contractors and 1099 workers. With our cash advance loans for gig workers, you can borrow up to $5,000 within 10 -15 minutes after approval. So, why wait? Apply now!

What options do I have for gig worker loans?

If you're looking to apply for short-term cash advance loans for gig workers, some limited options are available.

• Payday loans: If you want to borrow a small amount ranging from $100 to $1,500, payday loans for gig workers are the best option. Generally, the repayment period is short (3-6 months), and the interest rates are higher.
• Installment loans: If you want a considerable amount to borrow up to $5,000, apply for installment loans for gig workers. Usually, the repayment tenure is set between 6-12 months, and as compared to payday loans, interest rates are on the lower side.
• Cash advance loans: These loans are very similar to payday loans and typically offer instant cash ranging from $100 to $1,500, or in some cases, up to $5,000. A cash advance loan for gig workers is a short-term loan and has to be repaid by your next payment or 14-30 days.
• Personal loans: Typically, banks and other traditional finance providers only accept income from regular employment to approve a personal loan. The good news is that some limited online private lenders offer personal loans for gig workers. You can borrow a fixed amount of money, paid back with interest in monthly installments over a set period.

Gig worker loan eligibility requirements

While every lender sets their eligibility criteria for a loan, some basic requirements to get online loans for gig workers are:

• At least 18 years of age.
• US citizen or permanent resident.
• Social Security number.
• Government-issued photo ID.
• Debt-to-income ratio (DTI) of 43% or less.
• Regular source of income: part-time or gig work.
• Checking account to receive money.

Eligibility requirements depend upon your lender. Before applying, check your lender's requirements and make sure you can match them.

Common reasons why you might have been rejected

Getting a gig worker loan is difficult but not impossible. Make sure to find a lender that accepts gig income as a valid source of income, and don't make the mistakes mentioned below:

• Aren't you employed, or your gig income is too low to afford the loan?
• You have too many current debts.
• Already have existing loans or recently borrowed one.
• Had errors on your application.

In most cases, gig worker loan lenders see if you can repay your loan. Demonstrate to them that you can earn enough to make payments on the due date without delay to get instant approval.

How to get a gig worker loan?

Our instant loans for gig workers are easy to apply and fast to approve. You can get a cash advance quickly following a few steps of the application.

• Apply online: Answer a few details about yourself, your banking details, and your income, and you're done! Within a few minutes of applying, you get instant approval.
• Get approval: Once you apply for a gig worker loan, you'll get an instant decision from one of our vendors regarding a loan offer. Just review and e-sign your loan agreement if you find everything OK!
• Receive cash: We'll send the money within 10-15 minutes (subject to bank) into your account after you accept the loan agreement. GigsCheck ensures that our hard-working gig workers get their money as fast as possible and, on the go,