If you're on a Galaxy Fold, consider unfolding your phone or viewing it in full screen to best optimize your experience.
If you need to get a personal loan while unemployed, you may be able to get approved by demonstrating that you can repay the loan -- even if you don't have a job.
When you apply for a personal loan, the lender looks at your credit score, your other debt, and your income.
For this article, we'll assume that your credit score meets the lender's minimum standard.
When it comes to your debts and your income, the lender wants to make sure that you have enough money coming in to cover the new loan payment in addition to any other debt payments you already have to make.
For an unsecured loan, your income doesn't necessarily have to come from a job. Your income can be from many different sources. For a secured loan, you can even qualify with no income at all. But if you have no income, you will need assets that you can use as collateral.
Here are the steps you can take if you need to get a personal loan when you don't have a job.
Get familiar with your loan options, because once you start looking for alternative loan types, you'll run into many that are marketed to people with a bad credit score or no credit history. Those are the most expensive types of loans. If that's not your situation, you'll want to separate those choices from more affordable options that fit your situation.
Loan type | Who it's best for |
---|---|
Unsecured loan | Someone who meets the credit requirements and can document income. |
Secured loan | Someone who has assets to use as collateral. In the real estate world, this might be referred to as a no income, verified assets (NIVA) loan or a stated income, verified assets (SIVA) loan. A real estate loan is just one variety of secured loan. |
No income, no assets (NINA) loan | This is typically not a personal loan. It's used to finance real estate that's expected to generate rental income. |
Title loan | Someone who owns a car and is willing to use it as collateral. Title loans typically have a short loan term and high price. A title loan generally does not require a credit check. |
Payday loan or cash advance loan | Someone who has a job with a steady paycheck. Payday loans typically have a short loan term and high price. Payday lenders generally don't require a credit check. |
Payday Alternative Loan (PAL) | Someone with a job who is also a member of a credit union. Payday loan alternatives are short-term loans, but typically longer than payday loans, and cost much less. These loans don't require a credit check. |
Family or friends | Someone who knows a person with the means and willingness to help out. This is a personal arrangement that you make with someone you know. To protect the relationship, you should document the amount, interest, payment terms, and any penalties. Treat this lender just like any other. Don't neglect to make payments just because the person may be more forgiving than a bank. |
Cash advance | Someone who has a credit card. Many credit cards allow you to borrow cash. The cash advance credit limit is usually lower than the purchase credit limit. The loan term is whatever length of time it takes you to pay off the balance. Cash advances are almost always subject to a much higher interest rate than purchase, but the rate may still be lower than other types of loans that you can get without a job (like payday loans or title loans). |
Cash-out refinance | Someone who has a home, equity, and an income source. This loan uses your home as collateral. You borrow more than you currently owe on your mortgage, and you get the difference in cash. Even though this is a secured loan, you'll need to have a source of income to cover the payments. |
Home equity line of credit (HELOC) or home equity loan | Someone who has equity in their home. This is money you borrow against the equity you have in your home. Even though this is a secured loan, you'll need to have a source of income to cover the payments. |
Debt management plan (DMP) |
Someone who needs to lower their total monthly payment. This isn't a loan, per se, but it may be appropriate if you are struggling to keep up with your debt payments. A certified credit counseling agency will help you create a 3-to-5-year plan to pay off all your debts with a single payment that may be more affordable than your current combined monthly payments. Creditors might lower your interest rate to help you get through the DMP successfully. |
Any income you receive could help you qualify for an unsecured loan. You'll have to provide documentation, such as a recent statement. Lenders may consider:
Being able to document some kind of income could mean the difference between getting an unsecured vs. a secured loan.
If you don't have enough income to qualify for the loan, you might be able to qualify for a secured loan based on your assets instead. Here are examples of assets a lender might consider:
If you plan to use jewelry, artwork, or collector's items as collateral, the lender will require a professional appraisal and may ask for physical possession of the item until the loan is repaid.
Credit unions and banks usually have secured loan options. Virtually all will consider different income sources for an unsecured loan. Only credit unions offer payday loan alternatives (PALs).
An online loan is similar to a loan from your local bank. They will usually consider income sources other than employment. Many popular online lenders offer unsecured loans only, but you will find some that specialize in secured loans.
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
Title lenders make loans using your vehicle as collateral. Payday loans charge enormous fees. These are considered predatory loans. They are very expensive, and you can end up paying back many times the loan amount.
If you default on a title loan, the lender can take your vehicle (but risking your collateral is true for any secured loan). For some payday loans, you can't miss a payment because the lender will automatically take the money out of your bank account on payday, even if you need it for other expenses.
Check rates and fees. Depending on your circumstances, not having a job could make you look like a more risky borrower. That could cause them to charge you higher rates and fees for an installment loan.
If you aren't approved, you can try lowering your loan amount or talking to the lender to find out how you might be able to qualify. Be careful about applying with several lenders, as each application has the potential to damage your credit score. Many lenders offer information based on a soft pull, which doesn't affect your score. Take advantage of that when you can.
If you don't have income or assets, you will have a hard time getting a personal loan. In that case, you will need to re-evaluate your needs and consider other strategies.
Besides asking a family member or friend for a loan, you could also ask someone to be your cosigner. This means you are asking that person to take responsibility for -- and repay -- your debt. You could inadvertently give someone you care about a new financial problem if you are unable to repay your loan.
Yes. Many personal loan lenders are willing to consider other sources of income. If you don't have income, you may be able to qualify for a loan based on your assets.
Check with the lender before you apply. Many lenders will consider income from these sources:
The best place to start is your own bank or credit union. You can also check with online lenders, but you'll need to research which lenders offer loans that are right for your situation. If you have a source of income, most lenders will work with you. If you need to use collateral instead, find a lender that offers secured loans.
Our Loans Experts
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Citi Personal Loan disclaimer:
**Rates as of 10-06-2023 . Your APR may be as low as 10.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.