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Getting an Emergency Loan Without a Job

Unemployed and looking for ways to borrow money? Here are some ideas.

Can I qualify for a loan if I’m unemployed?

The chances of being approved for a personal loan, even if you don’t have a job, depends on two factors: alternative income and your credit.

Emergency Loans With No Job: Options for the Unemployed

Alternative Income as a Loan Factor

If you have no proof of employment due to a layoff or furlough, you can provide your lender with alternative income options to show you’re able to pay back what you borrow. Here are some alternative income sources you may be able to use when applying for an emergency personal loan without employment.

Alternative Income Sources

  • Unemployment benefits
  • Retirement benefits/pension
  • Disability
  • Social Security benefit payments
  • Alimony/child support
  • Spousal income
  • Freelance work

If you already have money in your savings account, or a pending job offer, those can also count as income for some lenders.  

Credit is Key

Credit can be a huge factor in whether you can get approved for an emergency loan with no job. Lenders will want to look at your credit history and credit score to see how reliable you are when it comes to managing your debt and paying back what you borrow. 

The higher your score, the better for lenders. Typically, a good credit score is 670 or above. In the end, it depends on the scoring model used: FICO or VantageScore.  

Credit scores are calculated using data from your credit reports, which you can check free every 12 months. If your history is in good shape, odds are so is your score. It’s important to check your credit and fix any inaccuracies immediately to get your score up where it needs to be.

Everybody starts somewhere. If your credit score is under 600, you might not qualify for a personal loan through Prosper. The good news is, we’ve partnered with AmOne, a financial services search resource. You might qualify for a personal loan through AmOne based on your financial situation. Click here to visit AmOne and learn more.

Important note: Every past-due account that is more than 30 days old can cost you at least 100 points on your credit score. Make sure to stay on top of your bills and correct any wrong information ASAP.

Emergency loans with no job: Three Options If You Don’t Qualify for a Personal Loan.

If you just don’t have the income to make a personal loan happen, there are alternatives for emergency financing if you don’t have a job. Here are three.

1. Apply with a co-signer

If your credit score is keeping you from being approved for a personal loan while unemployed, using a co-signer may help. A co-signer can be a friend or family member who has a good credit score. The advantages to using a co-signer include a higher probability for approval, better potential for a lower interest rate and possible access to a higher amount.

Just remember: Both you and your co-signer are responsible for payments, so if you miss or skip one, you’re both on the hook financially.

2. Get a joint personal loan

Like a co-signer, a joint personal loan allows you to apply with someone who has financial security and good credit. The difference? Both applicants own the loan, whereas the co-signer in the scenario above only shares the responsibility, not the ownership. This can benefit friends, families and couples in which one person is unemployed while the other has steady income. 

3. Apply for a home equity line of credit (HELOC)

If the above options don’t fit your current situation and you’re a homeowner, a home equity line of credit, or HELOC, may be able to provide you with the emergency cash you need while you search for a job. A HELOC allows you to borrow against the equity in your home, so it‘s not based on your income. It’s a revolving line of credit from which you can borrow as much or little as you need.

While a HELOC isn’t backed by your income, it does use your home as collateral. If you cannot keep up with payments, be very careful and consider choosing another route for financial assistance.

Everybody starts somewhere. If your credit score is under 600, you might not qualify for a personal loan through Prosper. The good news is, we’ve partnered with AmOne, a financial services search resource. You might qualify for a personal loan through AmOne based on your financial situation. Click here to visit AmOne and learn more.

Additional Finance Help For The Unemployed.

Sometimes circumstances don’t allow for emergency loans when you have no job. You may not have a cosigner, or home, or additional income. It’s important to know what financial relief is available at this time, from temporary assistance with your bills to federal aid specifically set up for COVID-19. 

Read more

All personal loans through Prosper made by WebBank. 

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