How to Get a Loan With No Job

In 2024, 211 million people were unemployed across the world. So if you find yourself out of a job, you’re far from alone.

But being unemployed affects more parts of your life than what you do all day. It puts you in a precarious financial situation, especially if you don’t have interviews lined up. You might start to wonder if you can get a loan without a job to cover expenses or debts — and thankfully, you can.

Unemployment loans are handy financial tools that can help households through difficult periods. Here’s a guide to how they work and possible alternatives.

Everyone has a unique financial situation, so there’s no concrete answer to this question. The important thing is to know if you can handle the loan and if it’s actually necessary for your situation.

Taking on an emergency loan with no job has risks, and those risks are amplified when you don’t have an income. The loan is another monthly payment on top of rent, bills, and other debts, and your credit and financial health could take hits if you can’t repay.

Whether you have a job or not, avoid taking out a loan if you don’t have to. Don’t make non-essential purchases with borrowed money. It’s a recipe for debt, and if you’re unemployed, you might not have the capital to pay back the cash in time.

But life doesn’t stop when you don’t have a job. And loans can be worth it if you need the funds for essential expenses like housing, utilities, or food. Sometimes, people also take out loans to cover emergency expenses, like a car repair or pet surgery. If you wouldn’t otherwise be able to pay for these necessities, taking out a loan might be your answer.

Keep in mind that many loan providers may be willing to work with you on alternative payment plans. Explain the situation while applying and let them know what you can afford. An unemployment loan is less risky if it’s short-term and there's a clear plan to repay it quickly.

If you decide getting a loan is the best choice for you, there are three factors to consider before applying:

You might need to prove you're receiving some form of consistent income. And this money doesn't have to be from a job. It could come from investments, spousal or child support, or unemployment benefits. Lenders just want reasonable belief that you’ll repay them, so many won’t give you a loan without proof of income, unless it’s an unemployment-specific loan.

Lenders are likely to check your credit score during a loan application, especially if you don’t have solid employment records to show them. Ask the lender what their minimum score is and cross-reference it with your own. The higher your score, the better your terms.

If you're unsure of your credit score, use EarnIn's Credit Monitoring tool. It allows you to check your score, view credit usage, and receive alerts to mitigate the risk of fraud — all while giving you the info you need to have a sense of your loan approval chances.

Debt-to-income ratio is the calculation of how much debt you're using compared to the amount available to you. Lenders like to see low debt utilization, typically around 25%. When a person uses a large amount of their available credit, it can signal to the lender that they're financially stretched and less likely to grant a new loan.

Before applying for a loan without a job, you should know what you’re signing up for. Here are three risks to be aware of:

If you’re unemployed, there’s a chance you’re already overwhelmed by bills and commitments. Loans are just another on the list. Payments are usually monthly but can also be weekly or biweekly, depending on the lender.

Before you apply, review your monthly budget and consider if you can handle another regular payment. Failing to pay can cause you to default on the loan and risk your financial health.

Interest rates often vary from person to person, but lenders usually charge more interest if you don’t have proof of a steady income. There’s a risk that upon reviewing your financial situation, a lender might decide to charge a higher interest rate than you were prepared for, along with additional fees to account for the risk of defaulting. Again, review your budget to figure out how much you can afford to pay.

The unfortunate reality of borrowing money under financial stress is the risk of falling into a cycle of debt. This happens when you can’t pay a debt, take out more debt to cover it, and then repeat the cycle again — and it can happen faster than you think. The cycle of debt can make you pay a lot more in interest than expected, especially if your financial situation doesn’t improve.

Unemployment loans aren’t the right choice for everyone. Here are five ways to get money without as much risk:

Credit cards can be a quick and accessible way to pay for expenses in the short term. But in exchange for their flexibility, credit cards are also some of the most expensive forms of debt when you can’t pay them back.

If possible, get a credit card with a generous grace period. This means you don’t have to pay interest for a certain number of days, weeks, or even months. While within your grace period, credit cards can act as no-interest loans, helping you smooth out your cash flow and pay for necessities. Just keep in mind that once it’s over, you have to pay off the balance along with interest, which adds up fast.

Individuals or families who own a house may be able to take out a HELOC, which is a secured form of credit that borrows against a home’s equity. You can get access to credit quickly, but if you can’t pay it back fast enough, the lender could seize and sell your home to recover their losses. A HELOC can be a somewhat low-cost alternative to unemployment loans, but as you can imagine, it’s highly risky. The extra money is likely not worth your home.

Mixing family and money can be risky business. But still, family members are likely to be the most inexpensive, flexible, and accessible lenders you can find.

Family loans are best for borrowing small amounts of money for a brief period. Be reasonable and kind, and set clear repayment terms from the get-go. Decide when you’ll pay them back and with how much interest. You don’t want to end up damaging your relationships for a few hundred dollars.

While you may not be employed traditionally, looking around your neighborhood and social media for side gigs or freelance work can be a way to generate some extra cash. Apps like DoorDash, Uber, and TaskRabbit offer flexible income-boosting opportunities for those who can work to some degree but may need more flexibility than a traditional job.

Do you have some items lying around that you never use? Sell them for extra cash. Go through your home, pick up every item, and ask yourself: Have you used this in the past year, and does it bring you joy? If the answer to both of those questions is no, then consider selling it to raise some extra cash. Focus on high-value items first, like electronics and jewelry, to make the most out of the experience.

You don’t have to take out a loan when you’re in a pinch. EarnIn’s Cash Out is here to help.

EarnIn’s Cash Out tool lets you access your pay as you work — up to $100 a day and up to $750 every pay period — so you have what you need to keep moving forward, whatever life sends your way.

Download EarnIn and start making the most of your money.