Getting Loans Without a Job Near You – A Complete Guide

Losing a job can be an incredibly stressful experience. Suddenly, your main source of income is gone and you are left wondering how you’ll pay your bills or handle emergencies. You may find yourself needing extra money during this difficult period. Thankfully, there are options for getting loans without steady employment if you know where to look.

In this comprehensive guide, we’ll explain how you can qualify for loans when you’re currently unemployed. We’ll also provide tips for finding lenders willing to work with you even without a regular paycheck. By the end, you’ll understand the loan types available and how to position yourself to get approved.

Can You Still Get Approved for a Loan Without a Job?

The first question you probably have is whether you can realistically get any kind of loan if you’re out of work. The short answer is yes, it is possible to get approved, but it may be more challenging.

Lenders will mainly look at these three factors when reviewing your application

• Credit score – Having a good credit score plays a big role in qualifying and securing decent interest rates. The higher your score, the better your chances.

• Income – Proof of income is required, but it doesn’t necessarily have to come from an employer. Lenders may look at other sources.

• Existing debt – Too much existing debt can make approval difficult Lenders want to see you can manage additional payments

Even without steady employment, you can still strengthen your case in these areas. Doing so will open up more loan options nearby.

Alternative Forms of Income to Use for Loan Applications

When applying for a personal loan without a job, the key is showing lenders you still have reliable income coming in each month to make payments. Here are some examples of alternative income sources you can provide proof of:

• Unemployment benefits
• Spousal income or partner’s income
• Retirement/pension payments
• Disability benefits
• Child support/alimony
• Social Security benefits
• Investment account distributions
• Rental property income
• Freelance work/side jobs

Savings accounts and pending job offers can also help demonstrate you are financially stable enough for a loan. Discuss all your current income sources with potential lenders.

How to Check Your Credit Score and Report

Since credit score plays a big role, make sure to check your score and review your full reports from the three bureaus before applying for loans. Having inaccuracies or errors on your report can significantly impact your score.

Here are quick tips for checking your credit:

• Request free annual credit reports from AnnualCreditReport.com to view your history.

• Check your FICO score from myFICO.com and your VantageScore through Credit Karma.

• Dispute any mistakes by submitting documentation to the credit bureaus.

• Consider taking steps to improve your credit, like paying down debts and consistently making payments on time.

Monitoring your credit is crucial when trying to get approved for loans without steady work. The higher your scores, the better.

Types of Loans to Consider Based on Your Situation

Depending on your unique circumstances, certain loans may be easier to qualify for than others. Here is an overview of loan types to consider:

Unsecured Personal Loans

• Overview: Unsecured loans don’t require collateral. Approval is based on credit, income, and debts.

• Ideal if: You have solid credit and some income but no assets to leverage.

• Where to get them: Banks, credit unions, online lenders like Prosper and Upstart.

Secured Loans

• Overview: Secured loans require an asset like a car or home equity as collateral.

• Ideal if: You have valuable assets but little/no income. The assets back the loan.

• Where to get them: Banks and some online lenders offer secured installment loans.

Credit Card Cash Advances

• Overview: Borrow against existing credit card limits for short term loans.

• Ideal if: You need smaller amounts of cash quickly and already have credit card accounts open.

• Where to get them: Directly through your credit card issuers.

Payday Alternative Loans (PALs)

• Overview: Provided by credit unions as an affordable alternative to payday loans.

• Ideal if: You have poor/no credit and need small loans for short periods.

• Where to get them: Application process through local credit unions.

Evaluate these options to see which loans fit your financial and employment situation right now. Having assets, credit, or some income are all helpful in securing approval.

Tips for Qualifying for Loans When Unemployed

If you’re currently out of work, use these tips to strengthen your loan applications:

• Lower your requested loan amount – Asking for less money can sometimes help with approval odds.

• Apply with a cosigner – Adding a cosigner with good credit and income will make approval easier.

• Tell lenders about pending job offers – Solid offers can help if you’re between jobs. Provide proof.

• Shop around – Compare rates and approval requirements between multiple nearby lenders.

• Talk to lenders – If denied, find out specifically why and what you can do to qualify.

• Avoid payday loans – Payday and title loans seem easy but have astronomical fees. Only use as an absolute last resort.

Taking these proactive steps improves your chances of getting funds you need.

Finding the Best Lenders Willing to Work With the Unemployed

These types of lenders are often the most open to approving loans for those without traditional jobs:

• Online lenders – Online lenders like Prosper, Upstart and SoFi use more than just credit scores to approve borrowers. Many consider alternative income sources.

• Credit unions – Member-focused credit unions may offer more flexibility, including payday alternative loans.

• Banks – Big banks like Citi and Wells Fargo can be options for personal loans and also offer secured loans. Shop around locally for the most accommodating terms.

• Peer-to-peer lenders – P2P platforms like LendingClub connect you directly with investors for personal loans. Flexible for non-traditional income.

Casting a wide net and comparing multiple lender options is key to getting approved without full-time employment.

Questions to Ask Lenders When You Don’t Have a Job

Any lenders you speak with should be able to answer these questions:

• Do you require traditional employment income or can I use alternative income sources?
• How much income do I need to qualify and what documents do I provide as proof?
• If I don’t meet income requirements, do you offer secured loan alternatives?
• How and when will I need to provide evidence of income?
• How much will my credit scores factor into your approval decision?
• How quickly can I get funded once approved?

Asking these questions upfront saves you time and helps identify the lenders most able to accommodate your situation.

What to Do If You Are Denied for Loans When Unemployed

If you apply and get turned down, don’t get discouraged. Here are some tips:

• Ask the lender why you were denied – Knowing the reason helps you improve your case.
• Work on boosting your credit – Increase your score by paying down debts and making timely payments.
• Lower the requested loan amount – Asking for less money may help get approved.
• Find a cosigner – Adding someone with income and good credit helps your odds.
• Wait to apply – In some cases, waiting until you have a new job offer helps.

Understanding why you didn’t qualify guides your next steps. Improving your credit and income stability opens more doors.

Alternatives to Explore If Loans Aren’t an Option

If you’ve tried all loan options and still cannot secure approval, here are a few alternate ideas to generate funds in the short-term:

• Ask family or friends for a loan – Set clear terms for repayment just like with a bank.
• Cash out retirement savings – Withdrawals from IRA/401(k) should be a last resort but can provide funds.
• Sell assets – Selling valuables, equipment, RV’s, etc can raise cash quickly.
• Rent out living space – Taking on a roommate(s) can provide rental income.
• Get a credit limit increase – Ask issuers to raise your card limits to access more cash advance availability.
• Look into hardship assistance programs – Churches/non-profits may have special loans or grants for those in need.

Explore these other potential sources of emergency funding when unemployed.

Final Thoughts on Getting Loans Without a Job

Losing your job doesn’t automatically disqualify you from getting a personal loan these days. Lenders are increasingly willing to consider factors beyond employment.

Focus on maintaining strong credit, minimizing existing debts, and documenting any alternative income streams. With healthy credit scores and some monthly income to speak of