Loans for the Unemployed - Emergency Options for Anyone

Loans for the Unemployed - Emergency Options for Anyone

Updated: March 20, 2023

8 Min Read

Table of Contents

What Most Lenders Consider when Assessing a Loan Request
Income Sources to Qualify for a Loan
Emergency Loan Options for the Unemployed
Alternative Options
Things to Consider Before Taking a Loan

Nobody is insured against unexpected financial distress. Matters get more complicated if you are unemployed when it happens. Emergency cash loans for the unemployed are not among the services lending companies offer very often. Nonetheless, it is possible to qualify for a loan from a direct lender, even without having a job. No loan provider can guarantee it without first examining the case, but it is a possibility. It usually involves bringing proof of alternative recurring sources of income. Lenders analyze such cases more in-depth and run a more serious check.

What Most Lenders Consider when Assessing a Loan Request?

When looking into your loan application, lenders consider several factors before making a final decision.

Income. One of the leading factors determining your eligibility for a loan is your income source. People who have a steady job and a decent salary are more likely to be approved for a loan. Lenders have more arguments to trust a borrower with a recurring income source since they will use a part of the money to repay the loan. Without a job, some lenders may consider alternative sources of income as an equivalent of a salary. 

Debt-to-income ratio. When assessing an applicant’s eligibility, the debt-to-income ratio is one of the most important values. Lenders use it to estimate your ability to repay them while also covering your basic living expenses, such as rent and bills. The calculation consists of dividing all your monthly debts by your gross monthly income. If the lender estimates that you will have more debt than you can afford to repay after taking the loan, they will most likely reject your application.

Credit history. Most lenders look into your credit history to establish your creditworthiness. Your credit score is an indicator of your trustworthiness as a borrower. A high score is critical when you apply for unsecured personal loans. Besides your credit history, lenders tend to look into your payment history, which is why paying your bills on time is to your advantage. Loan providers may also be interested in your past bankruptcy cases if there were any. Even for the companies that say your credit score is not essential to them, having a good credit history will always count as an advantage when you’re applying for a loan.

Income Sources to Qualify for a Loan

unemployment loans with no job verification

If you are unemployed when applying for a loan, lenders may count alternative options as your income sources. For example, if you regularly receive a fixed amount of money, such as social security, unemployment, alimony, etc., it can functionally substitute a salary on a loan application. Unemployment loans with no job verification are possible due to alternatives to employment income.

Interest. If you don’t have an official job but receive recurring monthly or annual interest, you can declare it an income source to qualify for a loan. For instance, if you earn interest from a savings account and you cannot tap into it to solve a financial emergency, it can serve as an income source on your loan application.

Social security. If you are unemployed because of reasons beyond your control (e.g., a medical condition preventing you from keeping a job), you may qualify for social security benefits. That, in turn, could help you qualify for a loan. Social security counts as a regular income source.

Unemployment benefits. The money withdrawn from your paycheck for unemployment insurance has a particular purpose. If you lose your job because of circumstances beyond your control, the money is redirected to you as unemployment benefits. And while it may not be enough to cover all your living expenses, the sum could be enough to help you qualify for a loan in times you need it the most.

Disability benefits. Just like any other sources of monthly income, if you’re on benefits because of disability, you may declare the funds you receive as income that you will use to repay the loan.

Your spouse’s income. If you need to apply for a personal loan, but your chances are slim due to unemployment, you can ask your wife or husband to be a cosigner for your loan. The only condition is for them to be employed at the time. As a result, your spouse’s income helps you get a loan.

Alimony, child support. A fixed sum of money received monthly as child support or alimony can also count as a regular income source. These sources can help unemployed people and single mothers qualify for emergency loans.

Retirement income. When you are retired, you are technically unemployed. That makes it more difficult for you to take a loan. However, if you receive a recurring amount of money as a retiree, either from your company, from your 401(k), or IRA, the odds of being approved for a loan are in your favor.

Emergency Loan Options for the Unemployed

When looking for a quick loan to deal with unexpected expenses, you have two main choices: secured and unsecured loans. The difference is that the first one implies using collateral, while the second one doesn’t. It is easier to qualify for a secured loan, especially if you have bad credit. Collateral offers lenders extra protection in case a borrower fails to repay the debt. Consequently, they are more likely to approve the loan request. You can apply for secured or unsecured loans with banks or credit unions. Direct payday lenders specialize in instant unsecured loans.

Banks. If you have been a bank customer for several years, you will enjoy more credibility when applying for a loan. For that reason, if you are considering borrowing money from a bank, think of a financial institution that you are familiar with. If you have a savings account with the same establishment, they may grant you more convenient interest rates. Banks will pull your credit report to check your credit score.

Credit unions. To apply for a loan with a credit union, you must be an active member. Having an account with a credit union will qualify you for low interest and convenient pay-off terms. To both banks and credit unions, the applicants’ credit scores play a leading role in establishing their creditworthiness. Secured loans have more relaxed conditions.

Direct lenders. Thousands of online lenders are ready to work directly with you without any involvement from third parties. Finding direct lenders and applying to each of them requires a decent investment of time on your side. On the bright side, the research could result in better terms and lower fees. 

Referral services. When running an online search, you will inevitably stumble upon referral services, also known as loan aggregators. These companies don’t provide loans, but they connect you with direct lenders who do. The main advantage is that you reach a large number of direct lenders with only one application. Some loan aggregators may ask for a one-time fee for their services.

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Alternative Options

If you don’t qualify for a personal loan on the first go, it may be because of your credit score. However, you can still access emergency loans for unemployed people with no income, even if you have bad credit.

Apply with a cosigner. If your credit score and income are not enough to qualify for a loan, you may ask someone to share your responsibilities by being your cosigner. Their credit score, employment details, and steady income can help you get approval. You can make it even online through a borrow money app that allows you to apply via your smartphone. Such apps are available for Android and iOS. Just choose your amount and loan term. This option could work for unemployed students who need quick loans. Bear in mind that failing to repay the loan will affect your cosigner’s credit score. Make sure they are informed about their risks. 

Get a joint loan. A joint personal loan is similar to applying with a cosigner. It means that you benefit from someone else’s good credit and overall eligibility. However, with a joint loan, both of you own the loan and are equally responsible for repaying it. A joint loan is recommended for couples, family members, and close friends.

Use a home equity line of credit. As a house owner, a home equity line of credit (HELOC) enables you to take a loan using your equity as collateral. This works as an alternative option for unemployed people. 

Apply for a car title loan. Accessing emergency cash is possible with a car title loan. It uses your vehicle’s title as collateral, and it’s relatively easy to qualify for such a loan. The downside is the high rates and short repayment terms.

Lower the loan amount. Sometimes, if you are denied a loan because of the amount, it makes sense to apply one more time, requesting a smaller sum.

Things to Consider Before Taking a Loan

Before applying for a loan, make sure you evaluate your risks, especially when you don’t have a steady job. If you don’t pay back the loan on time, debt can accrue, and you risk entering a debt cycle. You risk losing the collateral you use for secured loans. Consider both the short-term and long-term effects of a loan. Think about best-case and worst-case scenarios. Financial assistance is available in many forms, and there’s the right loan to help you deal with unexpected expenses. 


  1. Can unemployed people get a loan?
    Yes, unemployed people can get no job loans if they qualify. Their most accessible choices are secured personal loans and payday loans. Lenders may accept alternative income sources.
  2. How can I get a loan fast with no job?
    To get a loan fast with no job, consider applying for a secured loan involving a cosigner or apply for payday loans online.
  3. Could I get a loan without proof of income?
    You can get a loan without proof of traditional income. For instance, if you are on social or disability benefits or have another source of income, such as alimony or child support, you could be eligible for a loan.
  4. How to get an instant loan near me without documents?
    Apply for an urgent cash advance online to avoid paperwork and submit minimum required information. Payday loans are some of the most accessible loan types.
  5. Can I get an easy unemployment loan with no bank account?
    It’s not impossible to borrow money from a lender without an active bank account, but it is more difficult, and it often involves higher fees. For personal unemployment loans, consider secured loans. Alternatively, open a bank account and expand your possibilities.

  • Mandy Green December 8 2021, 04:18

    Trying get some help