Yes, it is possible to get a loan with no income. If you have some income coming from some places whether it is welfare, alimony, pension or interest, this can be used as eligibility for some loans. You may also have something that can be used as collateral, such as your car or some equity in your home that can be used as a secured loan.
If you have none of these above, you may look at some products such as Universal Credit or credit union.
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What Can Be Used If I Need a Loan With No Income?
- Alimony from divorce payments
- A pension or annuity
- Child support
- Disability benefits
- Dividends from a company
- Income from your spouse, partner, wife, husband, parents
- Interest from savings products
- Pensions
- Rent
- Social security benefits
- Welfare
Why Might You Have No Income?
At Pheabs, we appreciate that you may need money for an emergency, but at this present moment you have no income or job. But depending on the product and your history, you could still be eligible for a loan.
You may have no income because:
- You are unemployed
- You are between jobs
- You are starting a new job soon
- You are divorced
- You are retired
- You are new to a country
- You are young or a student
- You are unable to work for health reasons
What Type of Loans Require No Income Verification?
| Borrowing from family and friends | Asking for money from a parent, sibling or close friend can be the most simplest and fastest way to get money, regardless of whether you have a job or an income. This can be a great option if you need money, just make sure that you have clear terms to avoid any falling out. |
| Title loans | With title loans, you can sell the ‘title’ of your car to a lender temporarily – so you can get 25% to 50% of the car’s value upfront as a loan. You just need to make repayments on time, otherwise your can can be repossessed |
| Secured loans | This is where your loan is secured against something valuable you own, such as your car, home or valuable item. The rates are low because you have something with value to back it up. Just note that if you cannot pay the loan back, you could risk losing the asset part or in whole. |
| Collateral loans | Using collateral that you own is a common way to borrow money, including any art, jewellery, vehicles, inventory, property or similar. The rates can be low and income may not be considered in the mix, but you can lose the collateral if you do not pay back the loan on time. |
| Pawn shops | You can go to a pawn shop and sell household items or valuable things. The lender simply looks at the item, values it and gives you money in hand. |
| Co-signer loans | Get someone you know with a good stable income and credit score to ‘co sign’ your loan agreement, ideally a parent, sibling or friend. It is essential that they know the responsibilities involved and how they may be required to make repayment on your behalf. |
| Credit unions | For people with low incomes or no incomes and very bad credit scores, credit unions are not for profit organisations that seek to help people of all backgrounds. You can get a loan and the interest rates are low too, but just note that the loan can take a few days or weeks to process. |
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Does Having an Income Help You To Get a Loan?
Yes, in most cases, for mainstream products such as personal loans, credit cards and mortgages, having a stable employment and income is key to accessing products. And this can help you to borrow $500 or $50,000 at affordable rates.
Without an income, you are maybe looking at quite alternative products which could mean using valuable collateral (secured loans), selling items (pawn) that you don’t necessarily want to sell or paying higher rates of interest than if you need to (payday loans).
Can You Get a Loan With No Income and No Job?
Yes, it is possible to get a loan with no income and no job, but you may be limited to some products that require you to use collateral and you may have to find alternative forms of income to prove that you can repay your loan on time.
After all, loan companies are just businesses. They want to know that if they lend out money, will they get the funds returned and interest on top, so having any value or proof that you can afford a loan and repay it is essential.
For someone people, it means having a history of good credit, a spouse or income through other means such as a pension, welfare, benefits and more.
However, having a job (part-time or full-time) and an income, ideally with a good credit score, will only open you up to more opportunities when looking to get finance, whether it is credit cards, loans, mortgages, car finance and everything else in between.
How to Avoid Predatory Loans
You may find a number of lenders or companies try to advertise or offer you loans with no income. Whilst some of these might be valid, there are predatory lenders that you have to be aware of.
Some things to look out for and therefore avoid include:
- When a company promises you guaranteed loans or 100% approval – every loan out there in the US and Canada is subject to checks
- If it is a lender, they should have a license to trade legally in the US or Canada, check the DFPI website here for validation
- The interest rates should be realistic and within the regulatory guidelines. Payday loans can charge up to 600% APR depending on the state, but all lenders should present clear terms.
What Will Help Boost My Chances of a Loan With No Income?
If you have no income, there are some lenders who will take a view, especially if you are retired or married but without a job.
Certainly, being a joint homeowner on a property can help your application because the lender believes that you could sell this property, use its equity or get a loan against the property to fulfil any repayments.
By having a good credit score will always help, since this is a best indication of how well you have paid other forms of debt, loans or credit cards in the past. You may have a huge financial history which is very positive, but it is just at this current moment that you have no income or job for a loan.