Three quarters of gig workers struggle to get approved for a mortgage or loan
Around three quarters (76%) of gig workers and freelancers struggle to get approval for financial products such as a loan or mortgage.
According to income data platform Rollee, which surveyed 1,002 gig workers, many felt they were denied financial products despite a good credit score.
The report added that 60% had to apply to three or more lenders before securing a credit card or loan. Only 10% were successful when applying to their first lender.
Rollee noted that over half (52%) of those surveyed had lost out on a new home as they were declined by a bank or building society.
Around 20% said that limited access to financial services such as credit cards and loans had prevented them from accessing housing.
Looking forward, 80% of gig workers said they were concerned about the current economic climate and their ability to be approved for a loan, and a quarter said they would apply for a loan in the next couple of months.
The report said that around 4.4m people were working for gig economy platforms at least once a week in the UK, and gig workers contributed £20bn to the economy.
‘Financial exclusion for gig workers’
Ali Hamriti, CEO and co-founder at Rollee said the research showed the “level of financial exclusion gig workers are facing”.
He noted: “The struggle gig workers experience is not because they can’t afford a loan or mortgage, but because the current credit scoring systems of financial institutions are not set up to verify their multiple records of income and employment data.
“And with financial institutions under increasing pressure, this results in workers being denied access to products they should be entitled to.”
Hamriti added: “Self-employed workers need a fair chance to be able to prove their solvency to financial institutions.
“As the number of independent workers continues to rise, it is vital that financial organisations find new ways to gain full visibility of self-employed workers’ employment data to assess them fairly, and ensure they are not excluded from financial products just because of their working status.”