Unemployment is the highest it’s been in over two years, according to 2024 unemployment data from the Bureau of Labor Statistics. While this might be a good sign for taming inflation, it can be tough to make ends meet when you don’t have a job. If you need to take on debt to do so, consider other options besides the credit cards in your wallet. Personal loans, for instance, have much lower interest rates, on average, and can be a lifeline if you’re short on funds.

It's possible to get a loan while unemployed.

While personal loan lenders require borrowers to have income, it doesn’t have to come from a full-time job. Each lender has different rules for what counts as income, but you may be able to qualify with unemployment income, especially if you have other income sources, such as rental income, child support and alimony, and self-employment income.

You may also be eligible if you receive income from a trust or pension, payouts from a disability insurance policy, or Social Security income. It may also be possible to qualify for a loan with an offer of future employment.

Some lenders have minimum income requirements, while others do not. A good or excellent credit score may help you get approved if your income is limited, but it won’t suffice if you don’t have any money coming in. If the lender allows cosigners or joint applicants, they’ll typically consider your cosigner’s or co-borrower’s income along with your own when evaluating your application. A secured personal loan can also help you get a loan or lower your rate.

Tip

A secured loan requires collateral, like a savings account, that the lender can seize if you default. Because you take on more risk with this type of loan, it often translates to a lower interest rate, relative to an unsecured loan.

Some lenders are more accessible to unemployed people than others. They may have lower minimum income requirements, allow cosigners, or offer secured loans that may be easier to qualify for. Based on those metrics, these are our top picks.

Fox Money rating

Fixed (APR)

7.80% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

Overview

Upstart has one of the lowest available APRs of Credible partner lenders and of all non-partners we reviewed, making it a good choice for well-qualified applicants. However, it's also is one of few lenders that doesn't have a minimum credit score requirement (if you apply on the lender's website), which makes it an option if you have bad credit or no credit history. Upstart may charge an origination fee as high as 12%, but good-credit borrowers may not be charged one at all.

Trustpilot gives Upstart 4.9 stars, which is the highest of all lenders we reviewed.

Loan amount

$1,000 to $50,000

Fees

Origination fee

Eligibility

Available nationwide

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 3 business days

Loan uses

Pay off credit cards, consolidate debt, relocate, make a large purchase, and other purposes

Fox Money rating

Fixed (APR)

8.98% - 35.99%

Loan Amounts

$1000 to $40000

Min. Credit Score

Overview

LendingClub is a solid lender for good credit borrowers and some fair credit borrowers that apply directly on its website. It's easy to prequalify with LendingClub, especially if you're uncomfortable providing your Social Security number, as the company doesn't require it at the prequalification stage. (You will need to provide it if you move forward with a full application.)

While prequalification is not a guarantee that you'll be approved for a loan, LendingClub does a better job than most other Credible partner lenders at approving applicants that have successfully prequalified. In other words, you're less likely to have your application declined once you apply (if you've already prequalified). LendingClub may charge an origination fee between 3% and 8%.

Loan amount

$1,000 to $40,000

Fees

Origination fee

Eligibility

Available in all 50 states

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

Within 3 days

Loan uses

Debt consolidation, paying off credit cards

Fox Money rating

Fixed (APR)

8.99% - 35.99%

Loan Amounts

$2000 to $50000

Min. Credit Score

Overview

Best Egg is a solid lender for a wide range of borrowers and, notably, scored second for personal loan satisfaction in J.D. Power's Consumer Lending Study. It offers competitive rates, reasonable loan terms and amounts, and personal loans for fair credit. You'll need a FICO score of at least 600 to qualify, but the lower your score, the higher your APR may be. The APR includes the interest rate and origination fees, which range from 0.99% to 9.99% with Best Egg.

Note that if you successfully prequalify with Best Egg, you may be more likely to be approved for the loan relative to other lenders you prequalify with. Based on Credible data, borrowers who chose to apply for a loan with Best Egg were more than twice as likely to be approved (relative to most other Credible partners). 

Loan amount

$2,000 to $50,000

Fees

Origination fee, late fee, unsuccessful payment fee, check processing fee

Eligibility

Available in all states except DC, IA, VT, and WV

Min. income

Customer service

Phone, email 

Soft credit check

Time to get funds

As soon as 1 to 3 business days after successful verification

Loan uses

Credit card refinancing, debt consolidation, home improvement, and other purposes

Fox Money rating

Fixed (APR)

9.99% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

Overview

Upgrade has a suite of features that make it a very attractive lender: competitive interest rates, discounts for direct pay and autopay, as soon as same-day funding, up to seven-year repayment terms, and nationwide availability. Plus, loans are available to fair-credit borrowers, and you don't need to input your Social Security number to prequalify on the website. Upgrade even offers secured personal loans, which is not common among lenders.

However, Upgrade does charge an origination fee of 1.85% to 9.99%. You must have a FICO score of at least 600 and a minimum income of $25,000 annually to qualify.

Loan amount

$1,000 to $50,000 ($3,005 minimum in GA; $6,600 minimum in MA)

Repayment terms

2 to 7 years

Fees

Origination fee

Discounts

Autopay and direct pay

Eligibility

Available in all states

Min. income

Does not disclose

Customer service

Soft credit check

Time to get funds

1 business day

Loan uses

Credit card refinancing, debt consolidation, home improvement, major purchase, other

Fox Money rating

Fixed (APR)

11.69% - 35.99%

Loan Amounts

$1000 to $50000

Min. Credit Score

Overview

Universal Credit is one of a handful of lenders that offers personal loans for bad credit. If your FICO credit score is at least 560, you may be eligible for a Universal Credit personal loan. It offers loan amounts up to $50,000, repayment terms up to seven years, and discounts for direct pay and autopay. Funds are available as soon as the next business day after loan approval.

Note that rates and fees can be relatively high — you may pay an origination fee from 5.25% to 9.99%, and APRs start at 11.69%. If you get a loan with a high interest rate, consider refinancing your personal loan at a lower rate once you've improved your credit score.

Loan amount

$1,000 - $50,000

Repayment terms

3, 5, or 7 years

Fees

Origination fee

Discounts

Autopay and direct pay

Eligibility

A U.S. citizen or permanent resident; not available in DC, IA, SC, WV

Min. income

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 business day after acceptance

Loan uses

Debt consolidation, pay off credit cards, home improvements, unexpected expenses, home and auto repairs, weddings, and other major purchases

Fox Money rating

Fixed (APR)

12.95% - 30.00%

Loan Amounts

$1000 to $35000

Min. Credit Score

Overview

Zable offers relatively small loan amounts — ranging from $1,000 to $35,000 — that can be deposited in your account as soon as the same day you are approved, if it is by the lender's deadline. It’s an option for fair-credit borrowers, with a minimum credit score of 600, as well as those with lower incomes. 

Its origination fees range from 5% to 9%, however, and it does not offer discounts, secured loans, nor the option to add a cosigner to your application. Zable also currently does not offer loans in 21 states.

Loan amount

$1,000 to $35,000

Repayment terms

1 to 5 years

Fees

Origination fees (5% to 9%)

Eligibility

Not available in CO, CT, IN, KS, LA, ME, ND, NE, NH, NJ, NV, OK, OR, PA, RI, SC, SD, VT, WV, WI, or WY

Min. income

$1,000 per month

Customer service

Email, phone

Soft credit check

Time to get funds

As soon as the same day

Loan uses

Debt consolidation, credit card refinancing, home improvement, major purchase, car financing

Fox Money rating

Fixed (APR)

18.00% - 35.99%

Loan Amounts

$1500 to $20000

Min. Credit Score

Overview

OneMain Financial has multiple options for bad-credit personal loans. There is no minimum credit score required (if you apply directly with OneMain), which means you could get a loan with bad credit (FICO below 580). Plus, cosigners are allowed — a cosigner is someone (ideally, with good credit) who promises to repay the loan if you can't, which can make it easier to qualify or lower your rate. And, secured personal loans are available. You secure a loan with collateral, which may also help you qualify or lower your rate.

Rates are higher than competitors and OneMain charges origination fees as either a flat fee up to $500, or a percentage from 1% to 10% (depending on your state of residence). Note that even if you prequalify for a personal loan with OneMain, getting approved isn't a given. 

Loan amount

$1,500 to $20,000

Fees

Origination fee, unsuccessful payment fee, late fee

Eligibility

Must have photo I.D. issued by U.S. federal, state or local government

Min. income

Does not disclose

Customer service

Phone, email

Soft credit check

Time to get funds

As soon as 1 to 2 days after acceptance

Loan use

All except business, and education

Fox Business does not make or arrange loans.

Good to know

A cosigner is equally responsible for the loan, but does not have access to loan funds. If you miss payments, the lender will likely go after the cosigner for payment, and late or missed payments will hurt their credit (as well as your own).

When calculating your income, consider any regular payments you receive from government programs (like unemployment), investments, rental income, disability insurance policies, alimony and child support, and retirement income, along with any self-employment income.

Look for lenders that accept the forms of income you receive. If you plan to rely on your spouse’s income, you’ll need to find a lender that allows cosigners or joint applications with a co-borrower. Also pay attention to lender reputation, annual percentage rate (APR) ranges, and available repayment terms.

Most lenders allow you to prequalify for a personal loan without hurting your credit. The lender will run a soft credit check to get an overview of your credit, and will evaluate basic financial information you’ve supplied. If you’re likely to qualify, the lender will provide you with an estimated rate. 

Just note that prequalification isn’t a guarantee that the lender will offer a loan. If you go through the process with a handful of lenders, you can better compare personal loan rates and terms.

If you don’t earn enough income to qualify on your own, consider applying jointly with your spouse or asking a friend or family member who has good credit and steady income to cosign the loan. In either case, whoever helps you qualify will be on the hook for repayment. 

To avoid damaging their credit, make sure you can afford to make your monthly payments on time. Once you apply, the lender will conduct a hard credit pull, which could ding your credit score (and your cosigner’s) by a few points.

Check out: Best personal loans with a coisgner

Providing collateral for a loan lowers the risk to the lender, which can make it easier to qualify with a lower income or credit score. Collateral is an asset, like a savings account, vehicle, or your home, that you give the lender permission to take if you stop making payments. Most secured personal loans require a source of income, with the exception of some loans secured with your savings account.

Tip

If you’re a homeowner with sufficient home equity, you may want to consider a home equity loan. The interest rate and monthly payments will likely be lower relative to a personal loan, but you risk losing your home if you can’t make payments.

You may already have tools at your disposal to make monthly expenses more affordable. For instance:

• 0% APR credit card: Do you have a 0% APR promotion on an existing credit card? If so, you could potentially use it to transfer high-interest debt to lower your payments, or use it for new purchases (if they’re eligible for the 0% rate). It’s crucial, though, to know when the low rate expires.
• Tax refund advance: Or, if it’s near tax time and you’re due a refund, consider a tax refund advance, which can get you early access to your refund.
• Cash value life insurance: If you have a cash value life insurance plan, such as a whole life or universal life insurance policy, you may have a cash value that you can withdraw or borrow from. Since the money belongs to you, you won’t need to qualify with income or good-enough credit. But make sure you understand how a withdrawal or loan impacts the policy to avoid potential tax consequences or lapsation.
• Roth IRA and 401(k) contributions: If you’ve made Roth contributions (after-tax) to a 401(k) or IRA, you can withdraw them at any time without penalty, even if you’re under 59 ½.
• IRA or 401(k) emergency personal expense: Note that you’re allowed to withdraw up to $1,000 from an IRA or 401(k) annually, for an emergency personal expense. You’ll owe income tax for withdrawals from non-Roth accounts, but can avoid the 10% penalty tax for early distributions.

Learn more: How to get a personal loan

To be eligible for a loan, you generally must:

• Be an adult with an SSN and a bank account: Most lenders require that you be the age of majority in your state, be a citizen or permanent resident with a Social Security number (SSN), and have a bank account and email address.
• Have fair credit, with some exceptions: Most lenders require good credit, but some are welcoming to fair-credit borrowers. Some lenders, like Upstart, even offer personal loans to students with no credit history. It’s possible to get a loan with no credit check, but those options often have sky-high interest rates, and are best avoided.
• Have sufficient income to cover your debts: Most lenders check your debt-to-income ratio, which is the share of your monthly income that you put toward making your minimum payments, and some lenders also have minimum income requirements. However, you don’t necessarily need to be employed to get a loan — you can qualify with the alternative sources of income listed below.

Depending on the loan type, there may be additional requirements. For example, a home equity loan requires sufficient equity in your home.

Check out: Best loans for no credit history

• Self-employment income: If you work as an independent contractor, you can usually use the income to qualify for a loan, but you may have to show a track record of consistent earnings, such as your previous year’s tax return.
• Offer of employment: Some lenders will issue a loan if you have an offer of employment that will begin soon, even if you’re not earning income now.
• Social Security: If you receive benefits from a Social Security Administration program, including Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you can include your monthly benefit as income on most loan applications. If you receive SSI, be aware that any loan funds you don’t spend will count toward your resource limit in the following month.
• Unemployment benefits: Some lenders accept unemployment insurance benefits as a source of income, but they may require proof that you’ll receive the benefits for a certain length of time.
• Alimony or child support: To use alimony or child support as a source of income, you’ll generally need to provide a copy of the court order or agreement.
• Spouse’s income: You can’t typically include your spouse’s income on a personal loan application unless they’re applying with you as a co-borrower or cosigner.
• Pension or retirement income: With the right documentation, you can list your retirement income on a personal loan application with most lenders.
• Recurring interest: If you earn consistent income as a shareholder or investor, you can often use that income to qualify for a loan. Unrealized gains, inconsistent income, and dividends don’t typically count, however.
• Rental income: If you rent an investment property to tenants, you can often list the rent payments as income, but you may have to prove a steady history of rental income.
• Royalties: Some lenders may accept royalties from intellectual property as income, but you’ll likely need to show a consistent history of earnings.
• Income from a trust: If you get regular income from a trust fund and can document future payments, that may count as income.
• Foster care and adoption subsidies: Some lenders may accept foster care or adoption subsidies as income, though this is less commonly accepted than other sources.
• Regular gift money: If your family gives you money every month and you can document the recurring deposits, you can typically list the gift money as income.

Yes. While you’ll need to show proof of income to qualify for a loan, the money doesn’t need to come from a salary or wages. Self-employment income, government benefits, retirement income, alimony, and other sources of income may count as well. You can also get a boost from someone else’s income if they apply with you as a cosigner or co-borrower.

Most lenders offer loans for unemployed people who have an alternative source of income, including the lenders listed on this page. The best option for you will depend on your personal finances. Prequalify with multilevel lenders to get a sense of the rates you might get.

It depends on your financial situation. You should never take out a loan if you won’t be able to afford the monthly payments. If you’re still receiving regular income from another source or you already have a future job offer, you’re more likely to be approved for a personal loan while unemployed.

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Lindsay Frankel

Lindsay Frankel has been covering personal finance for six years, with particular expertise in loans, insurance, and real estate. She’s written hundreds of articles across a range of well-known outlets, including LendingTree, Investopedia, SFGate, and more. Outside of writing, she enjoys playing music and exploring nature with her rescue dog, Lucy.

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