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Personal Loans

I Don’t Have a Job. How Can I Get a Loan?

Even if you don't have a job, you can still get a loan. Lenders will still consider you for a loan when you are unemployed; being approved will depend on whether you prove that you can make regular payments on time.

These are some of the criteria that a lender will review:

  • Regular Income: if you are unemployed you still need to show a regular income or source of income to make loan payments (see below for a list of alternative income sources that will be considered).
  • Credit History: lenders will want to see how often you have made payments on time in the past and look for any negative items that may show up on your credit report.
  • Credit Score: maintaining a good credit score can help you in a situation like this, when you are unemployed, but need a loan to help you out financially.

Can I Qualify for a Loan with Alternate Income?

Yes, you can qualify for a loan if you can show to you have some sort of alternate income or other forms of income that proves you can make monthly payments.

Since you are unemployed, lenders will want to review your financial records to verify a source of income. Other forms of income that may be accepted by a lender include:

  • Social Security Income
  • Pension Fund
  • Government Annuity

View full list

  • Retirement
  • Unemployment Benefits
  • Disability Income
  • Employment Offers or Contracts
  • Capital Gains Income
  • Interest and Dividends Income
  • Housing Income
  • Investments
  • Inheritance
  • Spouse or Partner Income
  • Tip Income
  • Trust Income
  • Alimony or Child Support
  • Savings or Cash
  • VA Benefits Income
  • Public Assistance Income

What Should I Know before Taking out a Loan?

The most important thing to know before taking out a loan is that you need to be able to repay it. This is what lenders are considering when reviewing your loan application. Whether they think you can make the payments or not depends a lot on how much you are planning to borrow and what type of income you can show since you are unemployed.

Lenders may have different options or requirements if you are unemployed so make sure to check their website or ask them before applying. Some requirements include:

  • Shorter loan length, which means paying back the money faster.
  • Higher interest rate, which means you could end up paying more in interest charges.
  • Automatic payments deducted from your bank account.

What If I Have Bad Credit?

If you have a bad credit score or a bad credit history you may not qualify for a loan. Still, people with a bad credit history or a low credit score can still qualify for a loan. Chances are the specific requirements or loan limits could be imposed and the interest rates will be even higher than average.

What If I Don't Qualify for a Loan?

If you don't qualify for a loan you could consider the following options in order to receive some money in order to take care of your financial needs:

  • Car Title Loans: if your car is paid for you can use it as security on a loan.
  • Find a Co-Signer: having a co-signer on the loan could help you qualify, but this person also accepts responsibility for the loan if you stop making payments.
  • Home Equity Line of Credit (HELOC): is like having a credit card with a revolving balance because of equity you have in your home.
  • Cash Advance: a lot of credit cards offer cash advances, but there is usually a higher interest rate involved when you borrow on your credit card.
  • Debt Consolidation Loans: can help reduce your monthly payments to pay off your debt easier while you are unemployed.
  • Short-term loans: sometimes known as Payday Loans will look at other sources of income as proof to lend you money. These loans can be very expensive to take out and if you don't pay on time.
  • Pawn Shop: can be another option for a quick cash infusion if you have something of value.

Being out of work can take a toll on your finances while you try to find another job and take care of your expenses. Having a good money management plan in place can make all the difference while going through this transition.


Editorial Disclaimer: Opinions expressed here are author's alone, not those of any bank, credit card issuer, or other company, and have not been reviewed, approved or otherwise endorsed by any of these entities. All information, including rates and fees, are accurate as of the date of publication.
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