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Yes, you can receive a payday loan even if you are unemployed! There’s no need to worry; unemployment will not prevent you from getting a payday loan. In the US, there are many options for short-term finance for those without jobs. However, you do need to have a consistent type of income in order to be eligible for payday loans in the US. 

What type of income do I need to get a payday loan?

If you are unemployed, lenders will still consider your loan application if you have another form of regular income. A payday lending company can consider your application so long as your income meets the following requirements.

Steady Income

You will need a steady income to get a payday loan, meaning that you receive it consistently and at regular intervals. 

Earning more than $800

Your income must be a minimum of $800 a month. A lender will decide if they will approve your loan based on whether your income is sufficient to afford the repayments.

Remember, you do not need to have a job to get a payday loan. Your income can come from employment, or benefits, or another steady income source!

Can I receive a payday loan if I am on benefits?

Yes, you can receive a payday loan on benefits. Benefits are considered a steady source of income, and if you are receiving at least $800 per month, you are eligible for a payday loan. 

Will I be treated differently by payday loan lenders if I am unemployed?

You don’t need to worry about being treated differently by lenders for being unemployed. The loans provided for people on benefits are exactly the same as for those in employment. Lenders will consider your loan request equally, and you’ll still have access to all the best perks of payday loans, including quick approval and same-day cash!

Am I eligible for a payday loan? 

To be eligible for a payday loan in the US, there are only a few simple requirements. You must:

  • Be a US citizen
  • Be over the age of 18
  • Have a steady minimum income of $800 a month (through employment, benefits, or another regular source)
  • Have a checking account

Is a payday loan the right choice if I am unemployed?

IF you are thinking about getting a payday loan, you should first carefully weigh all of your options. Anyone applying for payday credit, whether employed or not, should look at alternative ways to source the funds needed. Before applying, you should first consider:

1. Am I applying for a loan for the right reasons?

Anyone requesting a payday loan should think about if this is the appropriate source of credit for their financial circumstances. A payday loan is an emergency short-term credit option designed to be used in one-off events. 

If you encounter an urgent situation that requires funds that you don’t have, a payday loan may be right for you. For example, an emergency home repair that you didn’t anticipate or a new boiler. Payday loans can also be considered for paying off hospital or veterinary bills.

Customers should never use a payday loan to address long-term financial difficulties, repay off other loans or pay rent or monthly bills. They are also not intended for frivolous spending or as extra cash for a holiday or shopping trip. 

2. Do I have an alternative way to find the money?

Before approaching a payday lending company, you should consider other options to source the funding you require. It may be possible for you to borrow money from family or friends, which could save you money in fees. 

3. Will I be able to repay the loan?

You should never enter into a payday loan that you are not sure if you’ll be able to repay. It would be best to have a good plan of how you will meet the repayments and, ideally, a budget that ensures this will be possible.

Will I get a payday loan if I am unemployed?

You aren’t guaranteed a loan if you are unemployed, but you will be considered equally by payday lending companies. All responsible lenders make checks before accepting loan requests in the interest of ensuring customers can afford a loan. If you are unemployed, a lender will review your alternative income to see if you can meet repayments on time before accepting your request.