can you get a loan without a job

Yes, it is possible to obtain a loan without a job with a cosigner, but it is not a wise decision because you may jeopardize your financial health if you are unable to repay the loan. Furthermore, qualifying may be difficult. This is because one of the most important personal loan requirements is consistent income history. Some lenders, however, will allow you to take out a loan with no income or will allow you to use your non-employment income to qualify. Before you take out a loan, learn how to get a loan without a job with a cosigner and without a credit score, and weigh the risks of getting a loan without a job.

Should You Apply for a Loan If You Don’t Have a Job?

If you don’t have a job or another source of income and can’t afford a personal loan, it’s best to avoid incurring new debt. However, if you have consistent non-employment income, such as Social Security or retirement funds, and can afford to incur additional debt, you may be able to obtain the necessary financing.

How Can You Get a Loan Without a Job

You can get a loan without a job, but you’ll need good credit and another source of income. Whether you are unemployed unexpectedly or by choice (as in the case of retirement), lenders will consider extending you a loan if you can convince them that you will make regular, on-time payments.

Lenders will specifically want to see:

#1. Excellent credit history:

On your credit report, a pattern of timely payments with few to no late or missed payments (especially in recent years) can reassure lenders that you manage debt responsibly. Most lenders also prefer credit reports free of negative events like bankruptcies or foreclosures.

#2. Credit rating:

Lenders typically set minimum credit score requirements for different types of loans, and they reserve their best loan offers—the ones with the lowest interest rates and fees—for borrowers with FICO® Scores in the very good or exceptional ranges. Credit scores are calculated using information from your credit reports, so if your credit history is in good standing, your credit score will be strong. However, before applying for a loan, you may be able to improve your credit score fairly quickly (within a few months) by paying down any credit card balances that exceed 30% of your card’s borrowing limits, or instantly with Experian Boost.

#3. Regular earnings:

Lenders must be confident that you will be able to make your loan payments on time each month. It does not have to be from a paycheck, but you must have one or more reliable and sufficient sources of income to cover your monthly expenses, with enough left over to cover your loan payments.

What to Think About Before Getting a Loan Without a Job

Before taking out any loan, regardless of your employment status, be honest with yourself about your ability to repay the loan in full as agreed. Missing just one payment can have a significant impact on your credit, and defaulting entirely will leave a significant blot on your credit history.

Be honest with yourself about your ability to make the monthly payments for the life of the loan. If you have any doubts, skip the loan or borrow a smaller amount than you can comfortably repay.

Depending on the nature and volume of your income sources, lenders may view your unemployment as a cause for concern, which may cause them to modify their loan offer in a variety of ways, including:

  • Reducing the amount of loan eligibility
  • Expecting to repay the loan in full in a shorter period of time
  • Increasing interest rates and possibly charging origination fees to offset the cost of pursuing payment if you default on the loan.
  • Requiring payment via automatic withdrawals from your bank account to reduce the likelihood of late payments.

Where Can I Get a Personal Loan If I Don’t Have a Job?

A personal loan, which does not require you to put up collateral such as real estate or a car, is the best type of loan for getting cash quickly. There are numerous lenders who offer personal loans.

The financial institution where you have your checking account is a great place to start looking for any loan, unemployed or not. Even in an age of machine learning, an established relationship can still work in your favor.

If a bank is your first choice, consider applying for a loan at a local credit union as well. Credit unions frequently offer competitive interest rates and may have lower credit score requirements than banks. If you accept a loan offer, you must first become a credit union member before the loan can be processed. Membership usually necessitates an open account with at least a few dollars in it—a small price to pay for a good loan deal.

Online financial institutions, including peer-to-peer lending sites, usually make quick lending decisions, and it’s simple to submit multiple applications at once. Loan offers tailored to your FICO® score can be found using online services such as the Experian CreditMatchTM personal loan finder.

Can You Get a Loan Without Credit

While getting a loan without a job and a low credit score is not impossible, it is likely to be much more difficult. Specialist lenders may offer loans to borrowers in this situation. However, you should expect to pay a much higher APR or interest rate on your borrowing, so you should carefully consider whether this is the best option for you.

It is a good idea to obtain a copy of your credit file before applying for a loan so you can see what information lenders have on file for you as well as your credit rating. Our free credit monitoring service can show you your credit score as well as simple hints and tips on how to improve it. Here are some quick ways to raise your score:

  • Lenders use this list to verify your identity and address, and it can instantly raise your credit score.
  • Correct any errors on your credit file. Mistakes on a file can harm your credit rating, but they are easily corrected if you contact the lenders.
    Should I get a loan if I’m unemployed?

If you are unemployed, whether you should take out a loan depends on your personal and financial situation. There are benefits and drawbacks to taking out a loan, so weigh your options carefully and consider alternatives, such as whether it would be better to wait and save up for what you need or ask friends or family for assistance. If you decide that a loan is the best option for you, shop around to find the best deal.

How Can I Get a Loan with a Low Income?

If you have a low income, you can improve your chances of getting a loan by improving your credit score. This free credit monitoring service will show you your credit file and credit rating. It will also provide you with suggestions on how to improve your score.

You can improve your credit score in a variety of ways. These are some examples:

  • Checking your credit score: Our credit monitoring service uses data from the credit bureau, TransUnion. This service displays your credit file and score, as well as advice on what you’re doing well and where you can improve your money management to raise your score.
  • Register your name on the electoral roll (via your local government) so that lenders can verify your personal information.
  • Spread out credit application submissions. These are recorded on your credit report, so if you apply multiple times in a row, your credit score may suffer.
  • Always make timely payments on any outstanding debts. Missed payments will harm your credit score, but on-time payments should improve it.
  • Obtaining a credit builder credit card and paying off the balance in full each month can demonstrate to lenders that you can manage credit responsibly.

The Dangers of Obtaining a Loan Without a Job

Just keep in mind that getting a loan with no job can be risky since if your alternative source of income falls, you risk missing payments and therefore ruining your credit. Furthermore, you may be unable to obtain favorable interest rates, a long repayment time, or minimal fees.

Alternatives to Obtaining a Loan Without a Job

Taking out an auto title loan, pawning an item, or getting a credit card cash advance are a few less desirable options for receiving a loan with no job. To decide which technique to employ to obtain your loan, you must weigh all of your options and understand their benefits and drawbacks.

What Happens If You Don’t Get a Loan?

If you are unemployed and do not qualify for a loan, you can still begin to organize your finances.

#1. Examine your bills and take action to cut costs.

If you are unable to make payments on your bills, credit cards, or other debts, the CFPB suggests contacting companies and lenders directly. If you are a Capital One® customer, you can contact us directly to discuss potential resources. You should also think about eliminating non-essential costs.

#2. Examine your emergency and savings accounts.

If you have money in a savings account or an emergency fund, now is the time to put it to use. And, if you’re thinking of withdrawing money from your retirement account early, make sure you’ve considered all of your options. Again, every circumstance is unique, so if possible, speak with a certified financial advisor.

#3. Investigate alternative sources of income.

Online firms pay users to answer surveys, participate in user testing, proofread content, and do other tasks. Just keep an eye out for scammers.

#4. Look for additional assistance.

Nonprofits and other organizations provide assistance to service industry workers, freelancers, and persons facing medical expenditures. If you require immediate assistance with food, you can learn more about how to use food banks.

#5. Maintain vigilance on your credit score.

When you’re dealing with financial instability, it’s easy to lose sight of your credit score. However, keeping a decent score can benefit you in the long run. Capital One CreditWise® allows you to see your free TransUnion® credit report and weekly VantageScore® 3.0 credit score at any time without affecting your score. And if your credit isn’t where you want it to be, there are certain steps you may do to enhance it.


There may be alternatives to taking out a loan without a job with a cosigner available, such as an authorized bank overdraft or credit card. However, these should only be considered if the borrowing is affordable and you will not incur long-term debt.

If you need a small cash boost to get you through a difficult period, it may be preferable to talk to family and friends. Alternatively, if you have the time, try to set aside small amounts of money each week to save for what you require.

Frequently Asked Questions

Where can I get a loan if I don't have a job?

Your local bank or credit union is the best place to start. You can also look into online lenders, but you’ll need to do your homework to find out which ones offer loans that are appropriate for your situation. Most lenders will work with you if you have a source of income. If you must use collateral, look for a lender who provides secured loans.

If I don't have a job, can I still get a loan?

Yes. Many personal loan lenders are willing to consider alternative income sources. If you don’t have any income, you might be able to get a loan based on your assets.

Can you get a loan if you have no income?

Even if you have no income, you can get a loan. Most no-income loans have higher interest rates, but with Instacash cash advances, you can borrow up to $250 and pay no interest for an entire month! MoneyLion also accepts unemployment, alimony, and child support as forms of qualified income.

How can I borrow money with bad credit and no job?

To qualify for loans, most borrowers will need to have a job and good credit. MoneyLion, on the other hand, only requires a soft credit check and proof of recurring deposits. MoneyLion accepts alimony, child support, and unemployment benefits as forms of income.

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