Can you get a personal loan without a job?

Yes, you may be able to get a personal loan even if you don’t have a job. While many people work a traditional nine to five job, there are many others who don’t, but still have income! 

A few examples include, business owners/entrepreneurs, retirees, those who have won financial awards for their work, or contract workers. Although all these people may not have a job in the traditional sense, they definitely will have some sort of income. And that is what most lenders will focus on for personal loan eligibility. 

Lenders want to make sure that you will be able to repay the loan each month, on time until it is repaid in full—and job titles may not be a good predictor of that. Instead they will ask to see proof of income.

There are a few different types of documents you can use to prove your income. Bank statements, pay stubs, letters of income, tax returns, and invoices are some of the most common documentation. If you have something different from this list, do not hesitate to ask your lender about it. 

Income is not the only factor that impacts personal loan eligibility. Your credit score is another important variable for approval. 

Your credit score is a number that encompasses many of your financial actions, including things like:

  • Bill payments.
  • The amount of debt you have.
  • How much debt you have paid off. 

All this information is listed on your credit reports which lenders look at before approving your personal loan application.

A low credit score will come from things like late payments, default accounts, and lots of debt. Having a low score may make it harder to qualify for personal loan funding. But even with a poor credit score, it is not impossible to get a personal loan, there are many lenders out there that can still make it happen. 

With a lower credit score expect higher interest rates and lower loan amounts. Fixing your credit score, no matter what it is, is definitely possible, and there are several strategies that can help!

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