As a business owner, many freelancers and gig workers do fantastic. They are able to not just provide quality work, but also market themselves, win over clients, and deliver on time. If they could not do these things, they would not be in business long. Yet, banks never see this. They only see the lack of a paycheck stub. As a result, they limit the freelancer’s access to credit, potentially costing them long-term financial security.

What the Lack of Credit Does to a Freelancer

Imagine the average consumer working a 9 to 5 job. If he or she does not have a credit history, it becomes hard to achieve financial goals. Getting car insurance is more expensive. Purchasing a car can be impossible. And, achieving the dream of homeownership is impossible.

To a freelancer, who does not even have a paycheck stub, the circumstances are even worse. A lack of credit in a freelancer hurts this individual’s ability to build a healthy financial future. What does a lack of credit mean to a freelance consumer, then?

There’s no evidence of financial management skill.

The freelancer cannot prove to a traditional lender that he or she has the ability to manage his or her finances. A FICO score tends to be the sole tool used to measure this by many traditional banks. Without a strong FICO score, the consumer looks like he or she has no ability to manage his money. Yet, that freelancer may be capable of balancing their business budget with ease.

There’s no way to prove the freelancer will make payments on time.

Buying a car is a simple task for someone with a good credit score. Even with a low score, it is possible to secure a loan with a proof of income. However, for the freelancer, this is not clear. There is no long-term proof of income to use to help showcase an individual’s ability to make a payment. Even if the freelancer has a large down payment, they cannot prove they can or will make payments on time.

Buying a home is impossible and yet so vital to financial health.

Another concern lies in home ownership. It is clear that owning a home is more than a status symbol. Those who own a home have the ability to make wise financial decisions, balance their budgets, and build wealth. Homes also build equity. This allows for low-cost borrowing down the road. And, they build value. The money put into a home allows the property owner to one day own that home. This does not happen with renting.

Turning the Page Means Building Financial Health

To build wealth and financial security, freelancers need access to credit. That is not to say they need a hand-out or a loan without having the proof they can make payments. Rather, they need a provider capable of noticing their solid financial health. It may not be in the traditional W2s and paycheck stubs, but it is in the details of their business.

This is where Oxygen comes in. By providing a tool and resource to not only better manage money, but to access credit when needed, Oxygen opens the door to freelancers who simply need an opportunity. With Oxygen, freelancers have an equal playing field. They can prove their worth, secure the credit they need, and build a strong financial future for themselves as a result.