Equifax has a new service called The Work Number to help lenders legitimize self-employment as bankable income for loans. This may change how a wide spectrum of lenders view applicants who work for themselves.
Nearly 1 in 9 Americans work for themselves in some capacity. The current system of downplaying that income can make it difficult to obtain auto loans for self employed individuals. The Work Number may help to change some of the challenges faced by these consumers by offering better ways to verify personal income. Equifax’s method encourages a borrower to gather various ongoing client invoices and calculating them on an average, with a significant time frame, to show a stable income over time.
The new program could help you get a better deal on your next car loan, but the gains shouldn’t stop there. Consumers bear a lot of the burden in negotiating the best car financing deals for themselves. Always ask about the best interest rates available, and check prime lending rates to make you’re not getting taken advantage of. When it comes to getting a fair self employed car loan, the more homework you do, the better deal you will get. Information is king, so work the system.