How To Get a Loan Without a Job

You can get a loan without a job, as long as you can show lenders proof that you'll be able to repay the loan. Lenders often want to see:

• A good-to-excellent credit score

• Solid credit history

• Proof of a steady stream of alternative income (government benefits, alimony, child support, investments or 1099 income can work)

MoneyLion offers a service to help you find personal loan offers. Based on the information you provide, you can get matched with offers for up to $100,000 from our top providers. You can compare rates, terms, and fees from different lenders and choose the best offer for you.

Should You Get a Co-Signer?

If you don't have a steady source of income and a good credit history, you can consider getting a co-signer. A co-signer is someone who promises to repay the loan if you can't. It's a big risk for your co-signer, but if you are a trustworthy individual, a relative or close friend might step up and help you out.

Types of Loans You Can Get Without a Job

While personal loans are a convenient way to borrow money, other options exist. If you don't have a job, one of these choices might provide an easier approval process.

What Lenders Look for if You're Unemployed

Lenders are likely to evaluate your credit score and your past payment history if you're unemployed and applying for a personal loan. Some things that might help your approval chances:

• On-time payments

• A high credit score

• Proof of other income, such as retirement or investment income, unemployment or disability benefits, or even alimony

If you have income, the lender will evaluate your debt-to-income ratio. That's the amount of total debt payments — including mortgages, car loans, credit card debt student loan debt and other debt — compared to your total income from all sources.

What if You Don't Have Income?

If you don't have any sources of income or a satisfactory credit score, the lender may require collateral in the form of savings or assets so you can qualify for a secured loan. Alternatively, you can ask a co-signer or co-borrower to help you qualify using their credit and income qualifications.

Where Can You Get a Loan With No Job?

You may have other options to getting a loan without a job. Take a look:

Alternative Income Loans

Some online lenders specialize in alternative income loans. These include lending platforms like Happy Money. They connect qualified borrowers, regardless of income, with lenders. Rates may be as low as 8.95% APR, with terms from two to five years.

P2P Lending

Similarly, peer-to-peer lending platforms like P2P Credit and Prosper often have less stringent lending requirements than traditional personal loan companies.

Credit Unions

Credit unions may also have more flexible lending requirements than banks. Credit unions also offer something called a Payday Alternative Loan (PAL). These loans are available to credit union members who have had their account for at least one month.

PALs range from $200 to $1,000, with terms from one to six months. They offer lower interest rates than payday loans and have a low application fee of $20 or less.

Community Banks

Community banks, like credit unions, may be more lenient in their loan qualifications, especially if you have a long history with the bank and a high credit score.

You may also qualify for a government loan without a job, especially if you need the money to recover after a disaster or want to start a small business. USA.gov has more details about the available programs.

How To Improve Your Chances of Approval

Work on maintaining a good credit score. Make all credit card and existing loan payments on time, and try not to use your credit cards, that way you can reduce your overall debt.

It helps to show steady income, whether this is 1099 income from consistent gig work, government aid, or investments. You can also use savings or investments as collateral to back your loan, but keep in mind that you're putting those assets at risk if you don't make the loan payments.

If you have no other options, ask someone to co-sign for you.

Keep the loan amount low — only borrow the amount you need to get out of your immediate financial situation and make sure you can afford the monthly loan payments.

Alternatives to Traditional Loans When You're Unemployed

If you don't qualify for a loan, you may still have other options to access cash for bills, groceries and other necessities.

Who Should and Shouldn't Consider a Loan Without a Job

A personal loan isn't the best solution for everyone struggling to make ends meet if they don't have steady income. Consider these before you apply.

Apply for a Loan If:

• You have consistent, non-job income.

• You have a way to repay the loan on time.

• You have a co-signer or a form of collateral.

• You have good credit — you'll likely get a lower interest rate.

• You only need funds in the short term.

Don't Apply for a Loan If:

• You have no income or a plan to repay the money.

• You're already behind on your bills and can't make monthly payments, since adding another bill to the mix won't help.

• You would lose assets, such as your car or home. If you default, it's not worth the risk.

• You're considering high-interest payday loans out of desperation.

While it might be tempting to look to a personal loan as a solution to your financial problems, you run the risk of falling deeper into debt. Finally, don't apply for a loan if you don't understand the terms, fees, monthly payments and due dates or the penalties.

FAQs

Can I get a loan with unemployment benefits?

You may qualify for a personal loan if you are collecting unemployment benefits and can show they provide a steady source of temporary income. You're more likely to earn approval if you have a high credit score, solid credit history, and perhaps even an offer of employment for the near future.

What's the easiest loan to get without a job?

Credit unions offer payday alternatives loans that are available to borrowers with no income. Alternately, you can consider a secured loan, backed by assets you own or a personal loan with a co-signer.

Are no-job loans safe?

No-job loans can be safe, but make sure you fully understand the terms, interest rate and penalties for non-payment. Work with a reputable lender and steer clear of predatory payday loans.