Have you thought about self-certification loans as a way to borrow money to buy your own home, go to college, or buy a car for yourself? If so, take this quick quiz to find out if self-certification loans are the best choice for you.
- Can you show proof of your income from work over the past three years?
If you said yes, you might not need a self-certification loan. Since a third party has confirmed how much you make each year, you may be able to choose loans other than self-certification loans, such as secured or unsecured personal loans.
If you answered "no," self-certification loans could help you buy a home, get a better degree, buy a second home, take a special trip, have the perfect wedding, or buy a car. Self-certification loans are set up so that you can, in effect, check your own income. It's kind of like a "honour system," and you can borrow money even if the only proof you have of your income is a bank statement.
- Do you work for yourself?
If you answered yes, self-certification loans are just what you need. They are set up so that people who work for themselves can borrow money. You may want to contact some banks to find out what kind of self-certification loans they have.
If you answered "no," you probably don't need self-certification loans for the same reasons that were mentioned in the answers to the first question. But don't forget that employer loyalty has gone the way of the dinosaur. If you end up working as a freelance consultant, you should keep self-certification loans in mind.
- Do you want to borrow a small amount of money?
If you said yes, you'll like self-certification loans for sure. Self-certification loans are made for smaller amounts because the less money you need, the more likely it is that you will get approved for one quickly.
If you said no, self-certification loans might not be the best choice. Self-certification loans are often limited to a certain amount by the lender. You should always do your own research, because you never know what a lender will say until you ask.
- Are you willing to pay interest rates that are higher than the norm?
If you answered "yes," you are ready for self-certification loans. Self-certification loans usually have higher-than-average interest rates because banks see them as riskier.
If you said no, you might not be ready for a self-certification loan right now. Even though interest rates are lower now than they have been in years, there is no way around the fact that self-certification loans have higher-than-average interest rates.
So, are you eligible for self-certifying loans? Only you can decide, but if you're leaning toward them, there's nothing wrong with doing some research now.
