All You Need to Know When Considering a Loan for Gig Workers
                     A L L Y O  U N E E D T O   
K N O  W W H E N
C  O  N S I D E R I N G A L O  A N  
F O  R G  I G W O  R K E R S
B Y L E V E L F I N A N C  I N 
G

A L L Y O  U N E E D T O K N O  W W H E N
C  O  N S I D E R I N G A L O  A N F O  R G  I G W O  R K E 
R S
The pandemic has given an additional push to the growth of the so-called  
gig economy. This term refers to independent work offered by both  
businesses and individuals through various digital platforms. As the 
number  of gig workers increases, so does their general demand for loans 
and  financing.
In the gig economy, workers can find clients who offer them freelance 
work  and one-time tasks. Gig workers can choose the amount of work 
flexibly  and sell their services to multiple clients. Some of these 
independent  workers use gigs as their primary source of income, while 
others see it as a  way to supplement their existing salary.
Here are some examples of gig work.
Food delivery –  Apps like Instacart, DoorDash, Grubhub, and Uber 
 Eats allow restaurants and fast food businesses to hire 
independent  workers for deliveries. The hourly pay usually ranges 
between $12  and $22.
Ridesharing –  Car owners can use apps like Uber, Lyft, and Gett to 
 offer services to people who need transportation. On Uber, riders 
 earn between $8.55/hour and $11.77/hour on average, according 
to  ridester.com.
Cleaning –  You can find cleaning gigs on several platforms, 
including  Housekeeper.com, which specifically targets workers in 
this field.
According to ZipRecruiter, cleaners in the US  earn $13.87 per hour 
on  average.
Freelancing –  On several freelancer platforms, like Fiverr and 
Upwork,  professionals in fields as diverse as coding, web design, 
translation,  photography, and digital marketing, can find clients who 
offer both  short-term and long-term work opportunities. The pay 
varies
significantly based on each worker’s field, experience, and 
qualifications.  Micro-tasking –  Other platforms, like Amazon 
Mechanical Turk, Prolific,  and UHRS, allow requesters to find flexible 
workers who are willing to  complete short tasks known as HITs (from 
surveys to transcriptions to  recordings to data entry). Each task is 
offered in a bundle, and each  worker can choose how many HITs from 
each bundle to work on.
Short-time rentals –  Those who are willing to rent their house (or parts  
of it) to tourists and other short-term stayers can do so on platforms 
like  Airbnb, VRBO, and Couchsurfing. For many people, this has 
become the  main source of income.
T H E G I G E C O N O M Y :A Q U I C K O V E R V I E 
W
Here are some interesting statistics on the increasingly relevant role 
of  the gig economy.
According to a study commissioned by UpWork and Freelancers  
Union, 35%  of the US  workforce admitted to freelance in 2019, 
while  28%  are full-time freelancers
Gig workers’ contribution to the US  economy amounted to 5.7% 
of  GDP in 2020 (Source: Zippia)
The gross volume of the world’s gig economy amounted to 
$401.4  trillion dollars in 2022 (Source: World Economic Forum)
In 2023, the value of the global gig economy is expected to be 
$455.2  trillion dollars
I S T A K I N G O U T A L O A N H A R D E R F O R G I 
G  W O R K E R S ?
The general tendency among banks and other financial institutions is to  
associate gig workers with high financial risk. This is due to numerous  
factors.
Gig workers have a less predictable income than traditional 
employees.  They don’t get paid for their time off.
No employer is offering them a benefits package, and they have to 
find  insurance by themselves.
Many gig workers constantly need to look for new clients.  
Their clients may pay late and, in some cases, not pay at 
all.
As sole proprietors, they are liable for all debts and losses 
incurred by
their business.
C R E D I T C A R D S F O R G I G W O R K E R S A N 
D  F R E E L A N C E R S
As a gig worker or freelancer, you are legally running a small business. 
This  applies even if you don’t have any employees, don’t have a separate 
 business address, and don’t plan to expand your business in the future.
Having this status alone increases the chances of obtaining credit 
cards  aimed at small business owners.
Focus your search on business credit cards with low fees and attractive  
rewards programs for a wide range of business costs. Applying for cards 
 with high fees and high spending requirements is not advisable when 
your  income as a gig worker is not significant.
Here are ways to improve your chances of obtaining a mortgage.
Apply for a mortgage when you have worked for at least two years as 
a  gig worker. Alternatively, apply after working for at least one year 
as a  gig worker and for the previous year as a regular employee.
Provide 1099 forms and tax returns.
Provide bank statements showing a regular (or even better, 
increasing)  inbound cash flow.
Maintain a high FICO credit score and a low debt-to-income ratio. If 
you  perform very well under these criteria, lenders are more inclined 
to  overlook that you don’t have a traditional employment contract.
Make a large downpayment.
Try to accumulate enough savings before applying and provide proof 
of  your savings during the application.
T H A N K Y O 
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