Personal Loans When You Have No Income

No Income Loans are available for those that find themselves in a tough spot. Financer.com helps you:

  • Find no income loans
  • Compare APR’s
  • Improve your financial literacy
  • Improve your situation
$300 Loan

Most Popular No Income Loans

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  • Request a loan up to $5,000
  • Low credit score is not a problem
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  • Up to $10,000 loans available.
  • As low as 5.99% APR.
  • Easy repayment terms.
  • No credit scores refused.

Please note that loan amounts, interest rates and other loan terms may vary according to your state and credit profile.

Loan Options For The Unemployed or Low Income Earners

Your chances of getting a loan when unemployed are generally slim. But there is hope. In this guide, break down what lenders look for when deciding whether to approve a loan to an unemployed person.

Obviously, whether a person is in employment or not is a significant factor in lending decisions. However, it is not always so clear cut, and other factors may be taken into account. With the right information, you have every chance for favorable approval.

Read on to find out what Financer.com recommends when getting a no income loan. 

What To Do If You Need a No Income Loan

  • Firstly, don’t panic. Why most people seek out loans is quite simply that unexpected events, which incur expenses, can happen to anyone. Most people seeking this type of loan, have had something unfortunate happen to them and require the loan for basic survival. With high APR rates and fees from credit cards, applying for a loan may be the more responsible and financially sound decision.
  • Start examining your options with online lenders. Traditional lenders will rarely fund you without proof of income. Online lenders make accessing money simpler than banks because of a less rigid process. Nevertheless, there are some criteria that most lenders will consider. Having some of these may help achieve a successful outcome. 

Positive Criteria For No Income Loan Applications

  • Having some form of income. e.g., support from family
  • Having assets that generate income
  • Being self-employed. You will need to produce bank statements or financial documents. 
  • A history of regular bank account deposits. You will need to show proof of regular deposits. This indicates trustworthiness and financial responsibility.
  • Receiving disability payments or other forms of compensation.

Criteria Lenders Will Reject For A No Income Loan Application

  • Having other unpaid current short-term loans.
  • You are bankrupt.
  • Having poor credit or bad credit or a very high debt to income ratio. Your Fico Score/credit history will be evaluated by loan providers. In some cases, they may require prior income verification.

Ultimately, a lender will need assurance that you can repay no income loans within reasonable terms.

A short-term loan can be your ticket out of a crisis if you earn favorable terms like good monthly payments, which can be determined by the Financer.com loan calculator. With the quick cash that virtually anyone can apply for online.

Check with lenders first to find out their eligibility criteria. They all have different terms and conditions. Start the online process today. You will be matched with various lenders willing to lend you money.

 Read these 15 tips before taking a loan.

How Much Should I Borrow?

It’s best to borrow small amounts with manageable monthly repayments. Knowing how much spare money you have on average for loan repayments from your monthly income is the first step to responsibly making repayments. The more manageable this looks, the more likely the loan is to succeed. 

Borrowing large amounts is not a good idea.  The most suitable uses for these no income loans are for expenses on the small side such as consolidating debt, making necessary home repairs, paying emergency dental or medical expenses, and various relatively minor expenses.

They should be used as a last resort, for the smallest amount possible and only if you have no other means to pay. Taking out one of these loans for mortgages isn’t optimal.  

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Other Ways of Obtaining Cash if You Are Unemployed

  1. Cash advance
  2. Borrowing against your home
  3. Loan with co-signers
  4. Car title loans
  5. Payday loans
  6. Debt consolidation loans

Pawnbrokers for the Unemployed

This is another source of funding for unemployed persons. They don’t claim your property during the repayment period. This is sometimes the best option for loans with no proof of income. Pawnshops may give you half of the loan. You will need to pay back the loan plus interest.

If you don’t pay back, your credit score won’t be affected. However, whatever item you brought in for appraisal will be kept. Pawnshops are found virtually everywhere.

Installment Loans and Payday Loans

Payday loans are a good option for the unemployed. Disability or alimony can be taken against a loan instead of paychecks. Take note that these loans can be expensive. Since they are unsecured, they will likely incur high interest rates. So, the shorter repayment period, the better.

Installment or payday, no income loans are a good option when money is needed immediately. Most of the time, a lot of documentation is not needed.

What is the Process for Getting a Loan with No Income?

Through the power of the internet, and with more lenders offering no income loans, they have become:

You never want to be in a position where you take on debt in a detrimental way. Typically, most no income loans are taken out when people are between jobs, especially in the independent contractor field.

However, even though it can be great to get money quickly and easily, no income loans shouldn’t be taken lightly. You need to make sure you are taking on debt responsibly and adequately.  

The last financial place you want to be in is the “I needed this loan yesterday” phase, as some call it. This is not because of the unlikely chance of failing to get approval for your loan, but because getting a loan so easily can distort a person’s ability to accurately judge fair terms.

  • Example: You had a contracting job that was paying you $60 per hour but you have lost that job. You then take out a loan to help carry your lifestyle through until you find another job paying the same rate. Lenders are typically afraid that this might mean the wage you once were earning and now no longer are, is an inflated estimation of your ability to generate income.

Lenders don’t want to be in the position where they make a loan to someone who can’t pay it back. Their concern is that if you have no income, you may have lost your job for some performance-related reasons.

Even if you were a contractor with a pre-determined start and end date, their rationalization usually defaults: “They could have managed their money better.” This, even though in most cases, a sensible person may just have been hit with an emergency right between jobs or contracts.

As long as you manage to use your loan for the bare minimum necessary to maintain the lowest standard of life you can tolerate, a no-income loan can be used beneficially.

Find out how much you need to save to keep out of debt during a financial downturn.

How Can I Improve My Financial Situation?

Step 1: Evaluate Your Budget

Most people have a goal of financial independence. The most important step one to achieving this is combating debt. Skipping this step is often caused by people acquiring detrimental debt, which hinders them from achieving their goals. This step alone is the bedrock for you to rebuild your financial future.

It involves monitoring every dollar, quarter, nickel, dime, and penny you spend. By doing this, you can understand what the lowest acceptable standard of living required to create a strategy for managing your repayments. This helps avoid the dreaded “bucket with a hole syndrome” that financially undisciplined people fall into.

The “bucket with a hole syndrome” starts when you try to maintain a high quality of life without the resources to actually do so. One of the first things you should be doing in your pursuit of a no-income loan is identifying what expenses you are incurring that are causing you to be unable to live and save within your current income. You need to reduce or eliminate them.

This could mean a reduction in expenses such as: 

    Reduce Expenses

  • Electricity

  • Unnecessary Utility

  • Monthly Subscriptions such as magazines, audiobooks, web classes you are not using

  • Eating Out

  • Paid TV – Netflix, Disney, Cable

  • Cut down your coffee purchases

  • Transport Expenses – Petrol and vehicle expenses in favor of walking, biking, public transport

  • Unnecessary Shopping – Clothing, hobbies, home decor

Once you’ve cut back on immediate expenses, consider what you could pull back from or sacrifice in the medium term to make a beneficial long term gain.

In most cases, a small online loan with no income is not much to worry about. People apply online for no income loans all the time.

However, the tips we’re providing you should be looked at as helpful advice to ensure that you have as much momentum as possible to succeed in the shortest amount of time possible.

When making sacrifices think of how you spend your money.

  • Do you only buy the most expensive food?
  • Do you go out to eat most nights?
  • Where can you pinch pennies so they can better align yourself with your long term goals?

Find out how to get money now without having to borrow.

Step 2: Commit to Financial Discipline

Once you’ve left no stone unturned when it comes to determining the right plan of attack, commit to the decision. Just like tucking away money every month, saving money and being more frugal can actually become a habit that soon becomes “a new normal.”

Most people who try to reduce their monthly expenses, or put more money in a bank account, report that after a month or two of doing it, they don’t even realize the difference in their lifestyle. Money just seems almost magically to be there when they need it.

Step 3: Pay Down Your Debt

This is where it all comes together! Because of your financial fitness and your new levels of awareness, the no income loan you’ve taken out has been successful. If we can add, it is relatively easy and straightforward to pay off. 

You’ve assessed what monthly payments you’re able to make, and you’ve borrowed responsibly, so at this point, all there is left to do is repay the financing fees incurred by borrowing the money in the first place!

So can I actually get a loan with no income?

In short. It depends on your circumstances and your current debt load, credit score, and potential of getting income.

How old do I have to be to get a loan?

To get a loan in the US you must be at least 18 years of age. Some states such as Alabama and Nebraska you have to be 19 years old and in Mississipi, you cannot get a personal loan in your name until 21 years old. 

Are No Income Mortgage Loans a Possibility?

The answer to this question is a simple yes and no.
Before the 2008 financial crisis, no-doc mortgages (now referred to as liar loans), were part of the recipe of what caused the housing market bubble. Banks were offering affordable interest rates to virtually anybody, even those who didn’t have prime credit scores.
Imagine this: you walk into a bank with just Good or even Poor credit and end up walking away with interest rates as if you had a perfect score. When the other shoe dropped in 2008, the repercussions were ugly for many banks, and a lot of real estate investors as renegotiations and bank buyouts were happening every day. So it’s safe to say the “Wild West-Esque” days of 2008 are gone. However, some lenders are still providing no doc/ no income loans but at higher rates than you would’ve expected in the “golden ages.” No-doc mortgages may not be as relevant as they once were. However, if you’re self-employed or have highly variable income depending on the type of work you do, they are still accessible.
As we’ve mentioned above, there are a few more standards to meet if you hope to qualify. Still, inversely because of the financial crisis of 2008, you’re now more protected than ever from predatory lending practices.

Author Financer.com

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Last Updated: July 20, 2020