Are you applying for a payday loan? If so, it is important to keep in mind that each provider will check your creditworthiness. Both the bank and the non-banking company. This is due to the current legislation, which should protect not only you as the applicant, but also protect the provider. One of the methods of determining creditworthiness is the need to prove your income. In what ways can this be done? Take a look at the list of the main ones with us.
Just be honest
We are referring to the so-called declaration of honor, which does not necessarily have to be in writing. It can also be online. This is mainly known for some pre-payday loans where you, as applicants, are obliged to indicate what your income is, as you often report here your expenses or the expenses and incomes of the whole household. Usually, it is enough to fill in the amount in each box and then agree that everything corresponds to reality. For many providers, you do not need to add any other documents. This is one of the simplest options, but we have to take into account that in return you will receive less money. Do not expect a similar procedure for classic consumer loans as providers need the best printed or truly verifiable document.
Prepared forms can be used
Many banks, as well as many non-banking companies, also have prepared forms that can be used to prove their income. These are the forms you pass on to the responsible person in your company. Most often the accounting department or your accountant. The person will make sure the form is filled in correctly and what your real income is. You will then hand this form back to your bank or non-banking company. The disadvantage can be a longer period of filing, but also that the company knows that you are taking a loan, as well as who knows. Some may mind, others may not. Especially when today the loan is considered as something quite common.
A paycheck may also be sufficient
You should also receive a paycheck from your employer with each paycheck. It is good to keep them as they can be used to prove your income. Usually it is required not only the current, but also those from previous months. The advantage is that you do not have to ask your employer for any confirmation and thus delay the application process. The disadvantage may be that not every person keeps pay slips. If you are planning a loan in the future, it is worth hiding tapes. Of course, it is possible to ask the employer for copies, for example. On the other hand, it may be easier to go to him with a classic form that you get from a bank or non-banking company.
It is often enough to hand over the phone to the employer
It is not always necessary to supply different documents. For some providers, it may be sufficient to give the telephone number to your employer. This is what is subsequently called and verified not only if you actually work there, but also to determine how much your wages are. The advantage here is that you do not have to look for anything or arrange anything. There is, of course, a disadvantage that the sweeper will know that you will borrow. Not everyone wants it. On the other hand, it is not such a problem in companies with a large number of employees, as a large percentage of them borrow money.
An account statement may also be available
It can also be a document to prove that you have income, as well as to show how much it is. Of course, it can only be used if you receive cash by cash. That is to say. If you get them on your hand, the listing is useless. And even if you deposit the whole amount here by return. For the money provider, it is important that the money goes from the employer’s account to yours. On the other hand, account turnover may be interesting for him, but only as a supplementary indicator. Also because they can be falsified quite simply by just spending the same money on your account.
Here we add that in the case of an application with a bank where you have an account, it is not necessary to supply the statement separately. A bank employee will look directly at your computer to see if your payout comes in and how much. As a result, there is no need to hide or print statements. However, with another bank you need the document, as the worker behind the counter does not look into yours.
Entrepreneurs supply tax returns and invoices
If a person is doing business, he does not have a classical income. He is a self-employed person who submits tax returns. And these are usually required as proof of income. This may be the last one, as well as those that have been delivered in previous years. Some providers are interested not only in how entrepreneurs were doing last year, but also in how they are doing now. It is therefore no exception that he can also provide VAT returns – if he is a payer or invoices for the last months. This can also help to confirm that the income is sufficient.
How to prove income for self-employed? What awaits you and what you need
Documents proving contributions from the state may also be sufficient