Proof of income for loan application
For contracts with longer-term installments income proofs for credit checks are required. Which documents are recognized as evidence of creditworthiness varies.
As part of the credit check, contractors almost always ask for proof of income – regardless of whether you want to rent an apartment or take a loan. Employees, the self-employed and recipients of state benefits can and must resort to very different documents.
Proof of income for employees: Salary statement
Anyone who is employed and therefore has a fixed monthly salary has, in principle, three options as to what he can present to prove his solvency:
- employment contract
- statement of earnings
- Payroll, salary or payroll
The simplest and most meaningful – and therefore also standard – is the proof of income by presenting the pay slips of the last three months. In some cases, you will also be required to provide the associated statements that document the incoming and outgoing payments on your account.
The employment contract is rarely required as a receipt. Because your contract partner can hardly see from it what you really deserve – after all, allowances, tax code and the like are not named here. An open-ended employment contract is usually a plus in the credit check.
The earnings certificate must be issued by your employer on request. As a rule, this is straightforward. But it also means that your boss may learn that you want to make a financially more or less important contract.
Proof of income for the self-employed: accounting documents
As a self-employed person, you have to spend a little more effort when you go through a credit check. Because unlike employees, you usually do not have steady, monthly revenues. Nevertheless, to prove your financial capacity, you as a freelancer or entrepreneur can resort to the following accounting documents:
- Business evaluation (monthly or quarterly)
- Revenue surplus account
- tax assessment
Unlike employees, who normally only have to cover their income over the last three months, self-employed people tend to spend a longer period of time getting meaningful information. As a rule, the proofs of income of the last two to three years are required. Especially at the beginning of self-employment is often difficult. In such cases, your accountant can help you create meaningful documents.
The problem is always: Tax assessments always show only past data. So if you currently have any income from renting, leasing or property, you should submit the relevant evidence necessarily.
Proof of income for recipients of state benefits
From unemployment benefit to pensions, there are a variety of government benefits, which are considered income. If you make a living from it, the grants of these benefits are your proof of income. They are issued by the responsible office.