How to Get a Loan Without a Job [Yes, It’s Possible]


A loan amount can help you pay your bills and secure you financially until you land a job. But requirements for loans are typically the highest when you don’t have employment. This article addresses how to get a loan without a job, the types of loans you can obtain, and the ramifications of doing so.

Can I Get a Personal Loan With No Job?

It’s quite challenging to get a loan if you don’t have a job because a steady income is an essential factor that lenders consider—helping them evaluate if you could pay the loan back on time. And the type of loans lenders provides when you’re unemployed typically exacts higher interest rates.

If you’re unemployed, lenders will consider other factors than income—such as a credit score and credit history—to determine if you’re eligible for a loan.

NOTE: There are 21.2 million outstanding loans in the US.

Requirements Without Income

Apart from employment, lenders also consider the following factors before sanctioning a loan.

  • Credit History

Getting a loan with no job is possible if you have a good credit history. But you should not have recently missed payments or late payments in your credit history. Paying your debts on time indicates that you’re financially responsible. Frequently missed or delayed payments, however, show that you might not be a good loan candidate. You should also not have foreclosures or bankruptcies in your credit report—a red flag to lenders.

  • Credit Score

Your credit score is calculated considering various factors. A higher credit score indicates that you’re financially responsible. The credit score requirements vary from one lender to another, but most lenders expect a FICO score above 600 for an approved loan. A higher credit score will also provide you with lower interest rates. But it is possible to get a loan with bad credit from some lenders.

  • Debt-To-Income (DTI) ratio

A DTI ratio calculates how much of your monthly income goes into paying off your debt. So with this in mind, is it possible to get a loan without a job? It’s possible if you have a low DTI, which suggests that you have fewer debt obligations and can take on a loan. Most lenders consider a DTI below 36%, but exceptions always exist. Since you don’t have any monthly income, lenders may consider your other sources of passive income.

  • Additional Income

When you’re applying for a loan, income from every source is calculated—not just from your employment income—which provides an advantage to those who have other sources of income. Consider the following income sources that lenders consider.

  • Dividends
  • Social security
  • Child support
  • Alimony
  • Interest
  • Spouse’s income
  • Annuity
  • Pension
NOTE: Lenders typically look at your employment history before giving a loan. If you’ve only recently been unemployed, that will likely give you a loan.

How to Get a Loan Without a Job

Note the following loans available for those without a job.

  • Secured/Unsecured Loans

Secured loans use up to a few of your assets as collateral. They provide security to the lender; they can take your assets if you don’t pay back the loan. Secured loans are typically given to those who do not meet the income or credit score requirements.

Obtaining an unsecured loan is also possible, which doesn’t require any collateral and is usually given if you meet the credit requirements.

  • Cash Advances

Cash advances are given against your credit card balance or line of credit. They are short-term and can be taken anytime since they don’t depend on your employment status. But they also come with very high fees and offer no grace periods. You can also withdraw only up to a specific loan amount.

  • Payday Loans

Payday loans are given with the condition that the borrower will pay them back when they receive their paycheck. These loans are taken for a small amount but have a very high-interest rate.

NOTE: As per loan stats, 19.1 million consumers in the US have unsecured loans, making this type of loan quite popular.

Key Takeaways

Getting a loan with no job is challenging but possible. Lenders consider factors apart from your paycheck to sanction the loan, including credit score, credit history, debt-to-income (DTI) ratio, and income from other sources like social security.
Various loans available include secured & unsecured loans, payday loans, and cash advances.
Secured loans use your assets as collateral for a lender’s security, while unsecured loans are given if you meet specific credit requirements.
Payday loans are given on the condition that you pay the loan back once you receive your paycheck, and cash advances are loans taken from credit cards.

Where Can I Get a Loan Without a Job?

It is possible to obtain a loan without a job from the following sources.

  • Banks

Banks are the first place you should consider getting any loan. They typically offer low-interest rates and flexible repayment plans. Such loans are also given for a more extended period. But banks are strict about requirements for a loan. You need a good credit history and credit score to qualify for a loan. If you don’t require the funds urgently, you can fix your credit score and then apply for a loan at a bank.

  • Online Lenders

Online lenders are suitable if you require a small amount of loan in a shorter period. They require minimum documentation and are a good option for personal loans for people with bad credit. But despite many advantages, a significant disadvantage is that online lenders charge a very high-interest rate.

  • Credit Unions

Credit unions work similarly to banks but are non-profitable. So if you’re wondering ‘where can I get a loan without a job’, credit unions are the best financial institution for you. Credit unions offer low-interest rates and don’t have strict policies to qualify for loans.

  • Peer-To-Peer Websites

Peer-to-peer lending has become quite common nowadays. It’s quite different from traditional methods of taking out a loan. It allows lenders to connect with the borrowers directly. Various lenders set requirements that are not as high as banks. These lenders are suitable if you only wish to take a loan for monthly expenses since it’s easy to fall into a debt trap with such lending.

NOTE: Peer-to-peer websites have the highest risk if you’re a lender because if the borrower goes into default, there is no way for the lenders to get their money back.

What if You Don’t Meet Requirements?

What if you don’t qualify for a loan? Is it possible to get a loan without a job then? Consider the following ways you can try to get a loan.

Apply Again With a Cosigner

You can quickly get approved if you add a cosigner with a better credit score than you, e.g., spouse, relative, friend. But make sure the co-signer is aware of all the terms and conditions of the loan since the cosigner is also liable to pay the loan amount.


A home equity line of credit (HELOC) is a large sum borrowed against the available equity in your home, and your house is used as collateral for the line of credit. A HELOC works similarly to a credit card; borrowers can take loans out only up to the line of credit. This type of loan should only be taken if you’re in dire need of funds because if you’re unable to pay back the loan, lenders can seize your house.

Pawn Shops

Pawn Shops are a good way for getting loans without a job. They offer secured loans against such various items as silver, gold, watches, television, cameras, etc. Such shops charge interest on the loan amount. But upon defaulting, they don’t report it to credit authorities since they already have collateral. Such loans are typically given in small amounts.

Cash Advance

Cash advances are given against your credit card’s line of credit. You can simply write a convenience check, and the amount will be transferred to your checking account in a few days. Cash advances are suitable if you don’t get approved for a loan. But they have high-interest rates, and not paying the loan back on time can affect your credit score.

NOTE: As per loan stats, 61% of Americans take personal loans to pay off their previous ones.

Disadvantages of Getting Loans Without a Job

Consider the following disadvantages of taking a loan when you’re unemployed.

  • Smaller Loan Amounts

You will not get a considerable loan amount if you’re unemployed. Typically, lenders only give out large amounts if you have a stable income and good credit history.

  • High Fees and Interest Rates

A small loan amount typically means that lenders will charge high fees and interest rates. So you end up paying a lot more than the amount you borrowed.

  • Low Credit Score

Taking loans out when you’re unemployed can lower your credit scores if you have any late or missed payments. And not having a regular income increases this risk further.

NOTE: Taking a loan when you’re unemployed increases your risk of falling into a debt trap. Although you can get out of it, even if you have no money and poor credit, it’s not advised.


While it’s challenging to get a loan without a job, it is possible. Lenders consider such factors as credit scores, credit history, and DTI ratio. You can take a loan from banks, credit unions, or online lenders. And if you don’t get approved, you could also seek the help of a cosigner or use cash advances. But although loans are available, think twice before taking out one without a job.


Can you get a loan if you are unemployed?

Yes, you can get a loan if you’re unemployed since, in such cases, lenders consider other factors, such as credit score or credit history.

How can I get a loan with no job?

To understand how to get a loan without a job, you must know that in such cases, lenders consider your credit scores or DTI ratio. You could also take out a secured loan.


I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.

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