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Can I Get a Personal Loan With No Income?


If you need to borrow money, it may be possible to get a personal loan with no income from a lender that does not have a minimum income requirement.

In spite of this, not all lenders will offer a personal loan to borrowers who have no income and it is always important to consider if you will be able to make the repayments on your loan if you do not have money coming into your account on a regular basis.

All lenders will naturally prefer borrowers who have a stable and regular source of income, as being employed, or in a position of having regular cashflow reduces the risk to the lender that the borrower will be unable to make their loan repayments.

Typically, lenders will have a minimum income requirement; often $800 per month, but they may still consider you if you need a personal loan and earn less, or even if you don’t earn anything at all. If you have low or insufficient income though, it will be less likely that you will be accepted for any loan from any lender.

Here, we have detailed what you might want to consider if you are likely to be turned down for a personal loan based on your income.

Can I Get a Personal Loan With Low Income?

You are more likely to be able to get a personal loan if you have low income than if you have no income at all. Lenders will consider various factors alongside your income before deciding whether or not they are going to offer you a loan, and at what interest rate.

As well as assessing your income, lenders will consider your credit history and credit score, your monthly debt and your debt-to-income ratio. This is to see how much debt you have left to pay off as well as how reliable you appear to be when it comes to repayments.

These checks form part of the affordability assessments lenders will undertake to determine your creditworthiness for the loan amount you wish to borrow. Whether you need to borrow $500 or if you need a $5000 loan, lenders will carry out the same checks for the same reasons.

What is Considered Low Income?

Although different lenders will have slightly different lending criteria and conditions for borrowers to adhere to when applying for any loan, typically, you will be considered to have low income if you earn less than $800 per month.

Different states across the USA have different rules and regulations when it comes to payday lending. For example, getting a payday loan in Texas will differ in its process when compared to say, getting payday loans in Tennessee or Florida. Also, the amount of money you apply to borrow will be taken into account when lenders look to calculate your affordability.

If you earn less than $800 per month, you may struggle to find personal loan lenders who will let you borrow money

Does My Income Source Matter?

Lenders will not discriminate based on where you get your monthly income from. This could be from welfare benefits, full time employment, child support and various other places.

When applying for a personal loan, it is important you are able to make it clear where your income comes from each month and exactly how much money comes into your account from each source.

This is so a lender can clearly see how much money comes into your account every month, and use it to calculate when you will be likely to make a full repayment of any money borrowed. In addition to this, lenders will use your monthly income alongside your credit score to decide which rates they can offer you on a potential loan.

What Should I Do If I Am Turned Down For a Loan Based on My Income?

There are a few things you can consider if you think that you might be turned down for any loan based on your monthly income.

Firstly, you may be able to add a co-signer or co-borrower to your loan application, who will act as a guarantor for you and the loan. This means that the lender will be able to consider both of your incomes, credit and debts when they assess your application to borrow money from them.

You may then be offered a loan with more favourable terms, and you can halve the responsibility of repaying the money borrowed because both credit scores will be impacted by a failure to repay or defaulting on payments.

In addition to this, you may be able to get a new job or negotiate an increase in salary at the job you are currently at. This is because increasing your monthly income might help you to qualify for a loan and also get a better rate.

What If I Can’t Prove My Income?

If for example, you haven’t received your paycheck from a new job but you are looking to apply for a loan, a lender might accept a letter confirming your new salary instead of proof of receipt of payment to help you access the money faster.

You could also consider alternative options to a personal loan, such as using a credit card or asking for some help from family and friends.

If you plan to pay off the credit card bill at the end of each month, this can actually be beneficial for your credit score. You may also be eligible to apply for a payday loan, however these are high risk and short term loans.

You will also be unable to apply for a payday loan from most lenders if you have no monthly income, as one of the only requirements for a payday loan is that you receive some form of income every month with which you can repay the loan.