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A personal loan can come in handy when an unexpected expense pops up, but lenders typically look for borrowers with good credit and steady incomes. If you aren’t working, were recently laid off, or recently started working for yourself, finding a personal loan with no income verification can be difficult.
There are loan options that don’t require proof of income, but they can be risky and expensive. Before taking out no-income loans, exhaust your alternative financing options.
What Are Personal Loans With No Income Verification?
A traditional personal loan is unsecured, meaning it’s not backed by collateral. Instead, the lender decides whether to approve you for a loan based on your income and creditworthiness. If you don’t meet lenders’ credit or income requirements, you won’t qualify for a loan.
However, there are some lenders that offer loans without requiring income verification. These loans tend to fall into three main categories: loans for excellent credit, secured loans, and pawnshop loans.
Personal Loans for Excellent Credit
If you have very good or excellent credit—meaning a credit score of 740 to 850—you may be able to qualify for a personal loan even if you don’t have a steady income. Some lenders, such as Upgrade and Universal Credit, don’t have minimum income requirements, so it’s possible to get a loan based on your creditworthiness.
If you have excellent credit, you’re in a great position to take out a loan with low rates. Check out the best personal loans for excellent credit, but take note that some of these lenders may require income verification.
Secured Loans
Unlike unsecured personal loans, secured loans require collateral. You have to provide property, money, or some other asset to secure the loan; if you don’t keep up with the payments, the lender can sell the collateral to recoup the money lent to you.
For those looking for personal loans with no income verification, the most likely option is a car title loan. With car title loans, lenders look at the value of your vehicle rather than your employment. Auto title loans tend to have short terms and low loan maximums, but they’re an option when you’re in a bind and need money quickly. But beware: If you can’t pay the loan back, you run the risk of losing your car title.
A secured loan may be one of your only options if you’re trying to borrow money.
Pawnshop Loans
If you have an emergency and need cash right away, another option is to pawn personal items you can live without for a time at a local pawnshop. Pawning can work like a loan; the loans are secured by your property. But pawnshop loans work differently than other secured loans since the pawnshop takes physical possession of the item until the loan is repaid or your term ends. If the loan is not paid off on time, the pawnshop can sell the item to recoup its investment.
Pawnshops are highly regulated, and they have loan maximums and interest rate caps that are set by the state in which they operate. For example:
- Alaska: Pawnshops in Alaska are limited to transactions of $750 or less, and the maximum amount of interest and fees they can charge is 20% of the amount financed per 30-day period.
- Florida: In Florida, pawnshops cannot charge more than 25% of the amount financed in interest or service charges for each 30-day period in a pawn transaction.
- Nevada: Paw shops in Nevada cannot charge more than 13% interest per month with an initial $5 charge.
Pawnshops don’t look at customer credit reports and they don’t require income verification, so they can be an appealing option for those who are unemployed or unbanked. However, they typically come with very high interest rates and extra fees, like storage fees, so they’re not a great choice.
How to Get Loans With No Income Verification
To take out a loan with no income verification, follow these steps:
- Consider all sources of income: If you’re unemployed, there may be other sources of income that can help you qualify for a personal loan. Social Security benefits, side gigs, alimony, and worker’s compensation payments can all be included as income on your loan application.
- Check your credit: Even if you don’t have any income, a high credit score can make you more attractive to lenders. Check your credit scores and review your credit reports at AnnualCreditReport.com.
- Compare options: Next, see what options are available. If you have a strong credit history, you may qualify for an unsecured personal loan. Otherwise, you may be limited to car title loans or pawnshop loans.
- Collect documentation: If you apply for a secured or pawnshop loan, you’ll need to provide documentation, such as your driver’s license, car title, or proof of ownership.
- Submit loan application: Unsecured personal loans allow you to apply online. But for other loan types with no income verification, you may have to visit the lender in person to fill out and submit the application.
Best Loans With No Income Verification or Low Income Required
| Lender | Minimum Annual Income Required | Loan Amounts | Loan Terms |
|---|---|---|---|
| Upgrade | No verification | $1,000–$50,000 | 24–84 months |
| Universal Credit | No verification | $1,000–$50,000 | 36–60 months |
| Best Egg | $3,500 | $2,000–$50,000 | 36–60 months |
| Happy Money | 300% of monthly income in bank account | $5,000–$40,000 | 24–60 months |
| Citibank | $10,500 | $2,000–$30,000 | 12–60 months |
| Upstart | $12,000 | $1,000–$50,000 | 36 or 60 months |
| Avant | $14,400 | $2,000–$35,000 | 12–60 months |
Pros and Cons of No-Income Loans
Pros
- Quick access to cash: No-income loans, such as car title or pawnshop loans, give you a lump sum of cash on the spot, so you can get the money you need right away.
- No credit needed in some cases: These loans may not take your credit history or credit score into consideration, so you can borrow money even if you have poor credit or haven’t yet established a credit profile.
Cons
- High rates: Depending on the type of loan and the lender you choose, expect to pay high rates and fees. For example, the rates and fees on typical car title loans are equivalent to an annual percentage rate (APR) of about 300%.
- Short repayment terms: While traditional personal loans can be repaid over several years, no-income loans tend to have much shorter terms. Car title loans and pawnshop loans are typically repaid in 30 days or less.
- Can cause a cycle of debt: Because of how short the repayment terms are for loans that don’t require income verification, many borrowers have to roll over the debt into a new loan, leading to a cycle of debt.
Alternative Sources of Financing for Low/No Income
Loans that don’t require income verification tend to have short repayment terms and high rates and fees, so they should only be used as a last resort. Before turning to those forms of debt, consider these alternatives.
Co-Signed Loans
If you don’t meet a lender’s income requirements, you may qualify for a traditional unsecured personal loan if you have a creditworthy co-signer apply with you. A co-signer is usually a relative or friend with a high credit score and a reliable source of income. By co-signing the loan they act as a guarantor, and they’re responsible for making payments if you fall behind.
Adding a co-signer improves your chances of getting a loan since the lender will consider your co-signer’s income and credit, too. And co-signed personal loans may allow you to borrow more money at a lower rate than you could get elsewhere. (Co-borrowing is similar to co-signing; with co-borrowed loans, each borrower is responsible for the debt from the start.)
Asking someone to co-sign a loan is a big favor since the loan will appear on their credit reports, and late payments can damage their credit. Co-signing a loan can limit their eligibility for other forms of credit, so proceed with caution.
Credit Union Emergency Loans
Some credit unions have emergency loans specifically designed for low-income borrowers. You can find a local credit union near you through the National Credit Union Administration locator tool.
Loans and Grants From Non-Profit Organizations
Many non-profit organizations have grants and loan programs for those who are unemployed or have low incomes. For example:
- Jewish Free Loan Association (JFLA): Through the JFLA, borrowers can take out interest-free emergency loans to cover medical expenses, rent, mortgage payments, utilities, or transportation.
- HFLA of Northeast Ohio: HFLA of Northeast Ohio offers interest-free loans to cover unexpected expenses, such as funeral costs or car repairs.
- Modest Needs: Modest Needs issues grants—not loans—to pay for unexpected emergency expenses.
You can contact 2-1-1, a free resource, to find organizations and programs in your area.
Can You Get a Personal Loan With No Income?
It’s often possible to get a traditional personal loan without a source of income if you have a co-signer or are willing to use property or other assets as collateral for a secured loan.
Can You Get a Personal Loan Without a Job?
You can get a loan even if you’re unemployed. Lenders look at multiple sources of income, including government benefits, alimony, and worker’s compensation payments.
If you have no income at all, you may be eligible for a secured loan using some form of property as collateral.
Which Personal Loans Don’t Require Proof of Income?
Most personal loan lenders will require proof of income, even if they don’t disclose their minimum income requirements. Only a few lenders, like Upgrade and Universal Credit, offer unsecured loans for a single borrower with no income verification.
Secured loan lenders, car title loan lenders, and pawnshops may issue loans without considering your income or credit.
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