Thinking about going freelance? According to a new study by Upwork in partnership with the Freelancer’s Union, Freelancers are 35% of the US workforce. And their number is growing. The reasons for freelancing vary: some people want a flexible work life, some have no choice and for some the incentive is financial. If the last one surprises you it shouldn’t: 60% of freelancers now earn more than they did when they were in traditional employment.
In an ideal world, you would go freelance with a spotless credit record. But the world isn’t ideal and won’t wait for you to get everything perfect to follow your dreams. Especially if it is a lack of good full time opportunities that is pushing you towards freelancing, it is not only possible to be a freelancer with bad credit, it might be a good option. Here are some tips.
A roof over your head
The worry many freelancers have is not about how they are going to pay the rent but whether people will let them rent. Although a stable salary is the simplest way to prove income, renters are trying alternative ways. You could present a tax form, child support records or your freelancing contracts; more landlords are willing to be flexible than you think. This also applied to the case of poor credit scores – they need not automatically disqualify you as a tenant. It’s often worth opening up a dialogue with the landlord to explain your situation. If your credit is the result of a situation such as divorce or student loan debt they may well be more forgiving than if it’s just due to poor spending decisions.
Repairing your credit
Although it’s possible to press on with bad credit, it might be worth taking steps to improve it. There are several things you can do to improve it yourself or you can use credit improvement companies such as creditrepair.com, a company targeting tech savvy clients. You can learn more about creditrepair.com here.
Not always, but often setting up as a freelancer often takes money, especially if you plan on starting a company. If you can’t get conventional business loans due to your poor credit, consider finding the money elsewhere. More than a third of small business owners have received financial support from family and friends so there is no shame in that route.
Bad credit can make the freelancer life more difficult but it is far from impossible. If you are resourceful and pro-active you can make freelancing work, whatever your credit score.