Can You Get a Loan With No Job? What To Know Before You Borrow
Written by
Jeanine Skowronski
Edited by
Melanie Grafil
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You can get a personal loan without a job, but the odds of getting approved are low if you can’t demonstrate your ability to repay.
To show you can pay back the loan, you’ll need to provide proof of nontraditional income, offer collateral or have a willing cosigner.
This will cover how to get a loan without a job and explore safer alternatives if you need emergency funds due to severe financial difficulties.
Keep in Mind
Keep in mind that tapping a loan to get out of debt after losing a job or a drop in income carries risks. You can easily end up further in the red and damage your long-term creditworthiness.
How To Qualify for a Loan With No Job
“If you need financing but are without work, consider your options and research loan eligibility requirements,” said Leslie H. Tayne, founder of Tayne Law Group, a debt resolution firm. “Every loan lender is different and has different requirements, so some outlets may have a higher approval likelihood for your financial profile than others.”
The following steps can help you qualify for a loan if you have no job.
Show Alternative Sources of Income
Having no job doesn’t necessarily mean you have no income. Lenders typically accept these alternative cashflow sources for applicants without a traditional paycheck:
- 1099 wages, common among self-employed or gig workers
- Government benefits, including Social Security, disability, worker’s compensation, veterans’, and, in some cases, unemployment wages
- Child support, alimony or other court-ordered funding
- Retirement monies, like pensions, annuities or 401(k) withdrawals, though there may be some tax implications
- Investment earnings, like dividend payments or accrued interest
- Rental income
Use a Cosigner
Most lenders will approve applicants with little to no income if they have an able cosigner, as this cosigner also assumes responsibility for the loan. In this scenario, the cosigner’s income is filling your income requirement shortfalls.
There are some risks to cosigning. If the loan goes unpaid, both of you are legally liable for the debt. Eventually, the lack of payments will see more negative consequences like a dip in your credit score and a strain on the relationship.
Offer Collateral
Secured personal loans are backed by collateral, an asset, such as a home, vehicle or fine jewelry. Collateral reduces the lender’s risk as it can seize the asset if you default on the loan. As a result, you can sometimes get financing with no job if you have something of value to offer a lender.
7 Loan Options When Unemployed — and Their Risks
Getting a loan while unemployed is often difficult, especially if your lack of work correlates to a shortfall in income — and many options are less than ideal.
Your best bet in terms of affordable terms and conditions is often a personal loan, although they have drawbacks as well. There are some pros and cons of a personal loan to be aware of, too.
The chart below breaks down the available financing sources by fit, requirements and risks.
| Loan Type | Good For | Requirements | Risks |
|---|---|---|---|
| Personal loan | People with alternate income or a co-signer | Good credit, steady income, low debt-to-income ratio (DTI) | Unaffordable monthly payments |
| Secured personal loan | People with assets to offer as collateral | Asset to back the loan, like jewelry, fine art or precious metals | Can lose asset if you can’t repay |
| Home equity loan or HELOC | Homeowners with equity to borrow against | At least 15% to 20% home equity, good credit, low DTI | Can lose your home if you can’t repay |
| Title loan | Car owners | The title to your car | Can lose your car if you can’t repay, high APRs and fees |
| Cash advance app | People who need some fast cash | Good bank account history | Small-dollar, short-term loans, fees |
| Credit card advance | Credit cardholders | Enough available credit on the card | High APRs and fees, interest accrues immediately |
| Payday loan | Emergency scenarios only | Bank or prepaid account | High fees, short repayment periods |
Safer Alternatives to Borrowing Money
If you’re cash-strapped due to a job loss or prolonged unemployment, new financing isn’t always the best answer. Failure to repay will only exacerbate financial and credit issues. Consider taking these steps first before applying for a loan without income:
- Look into government assistance: There are state and federal programs designed to help Americans experiencing financial hardship. You can identify these programs through sites like Benefits.gov.
- Negotiate with the creditors you owe: “This is a task I do daily in my work as a debt attorney, and often, indebted consumers are surprised at the value of savings that creditors and lenders are willing to offer,” Tayne said.
- Explore a side gig to bring in more income: Top side hustles that require little to no startup expenses include handyperson work, freelancing, and online tutoring.
Additional steps to get out of debt on a low income include:
- Drafting a new budget
- Using a do-it-yourself (DIY) repayment strategy, like the debt avalanche method
- Exploring debt relief programs
How To Improve Your Chances of Approval
If you decide financing is the way to go, these steps can up your approval odds.
- Add a co-signer or collateral to address income requirement shortfalls.
- Build a stable bank account history as certain financing sources, like cash advance apps, require a checking account and history of consistent deposits.
- Choose smaller loan amounts. They’re easier to qualify for as they pose less risk to the lender, and they pose less risk to you as payments should be more manageable.
- Have a good loan purpose. Lenders often have loan-use restrictions, so be sure you can put the funds toward your intended purpose. Otherwise, you can face an unexpected denial. Learn more about what you can use a personal loan for.
- Maintain a low debt-to-income ratio. Lenders look to see that your current debts are no higher than 36% of your earnings from alternate sources or otherwise.
- Have all relevant paperwork ready, including 1099s, dividend statements, government benefit pay stubs, or other documentation demonstrating your ability to repay. Keep in mind that lenders often require extra income verification from self-employed individuals, including two years’ worth of tax returns and profit-and-loss statements.
- Improve your credit score, if possible. Good credit bolsters any loan application and is particularly important if you’re worried about fulfilling a lender’s income requirements. You can improve your credit by making consistent on-time loan payments, spacing out new credit applications, and keeping balances below at least 30% of your credit limits.
“I also recommend reviewing your credit score for any errors,” Tayne said. “Consumers can report any errors to the corresponding agencies, which will improve their credit scores quickly.”
FAQ: Getting a Loan With No Job
Looking for answers about getting a loan without a job? See these FAQs for to get more guidance about your options.- What is the easiest loan to get approved for with no job?
- If you have no job, the easiest ways to get approved for a loan include putting up collateral, having a co-signer, or demonstrating the ability to repay through alternative income sources, such as pensions or government benefits.
- Are there apps that lend you money instantly?
- Cash advance apps, such as Dave, MoneyLion and Earnin, offer small, short-term loans to borrowers in need of cash, often at low fees and without a credit check. These apps often require a history of consistent bank account deposits.
- Can I use unemployment benefits as proof of income for a loan?
- Lenders often won't use employment wages as proof of income, given that these benefits typically expire after a certain period, although they may make exceptions.
- How much can I borrow without a job?
- You can borrow money without a job, but the amount, much like your approval odds, hinges on whether and what lenders believe you can repay. They'll base loan amounts on alternate sources of income, your credit score, and your debt-to-income ratio, among other factors.
- Will taking out a loan with no job hurt my credit?
- Taking out a loan with no job can harm your credit if you are unable or unwilling to make payments as agreed. Any new loan, regardless of your employment status, can have short-term adverse effects on your credit as it can generate a new credit inquiry, skew your credit utilization rate or lower the average age of your credit accounts.
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- American Express. "Can You Get a Loan Without a Job?"
- Federal Trade Commission (FTC). "Cosigning a Loan FAQs."
- Capital One. 2024. "Credit Utilization Ratio: What You Need to Know."
- Community Choice Credit Union. 2025. "Opening New Accounts May Impact Your Credit Score."
- Consumer Financial Protection Bureau (CFPB). "What do I need to qualify for a payday loan?"
