Sometimes you run into situations where you need to get a loan, but you don’t have a job or other proven way to pay it back. Maybe you only need a small amount of money or you have something you need to finance quickly, and this seems like the easiest way to manage that.
Is it possible to get a personal loan with no income? Contrary to what you’re normally led to believe, the answer is yes. More consumers turn to personal loans than ever before
Check out these methods that can help you get the loan you need, even if you don’t work a normal job.
1. Choosing to Use Collateral
If you’re looking for a loan but don’t have a steady job (or any job), consider forms of collateral that a bank would find useful. These generally come in the form of houses, property, and cars, to name a few. This is often called a secured loan.
Provided you own these resources and they’re in your name, lenders usually accept these with no problems. Talk with your lender and find out if they’re willing to accept any of these options if you seek a personal loan.
2. Showing Alternative Income as Proof
While paycheck stubs are the most common way to get a loan, there are other ways you can prove you have the means to pay back a loan.
Some of these include:
- Child support payments
- Income from your spouse
- Savings, including cash savings
If you work on a freelance basis, know what methods you can use to verify your income. These typically involve using your income tax returns and bank statements. If you get paid via PayPal or a similar method on a recurring basis, you can use this to help make your case.
3. Get a Personal Loan With No Income By Having a Cosigner
Sometimes if you have an urgent situation that requires a quick loan, you can get one, even without a job or bad credit, as long as you have a cosigner. Essentially, this individual promises to pay on your behalf if you don’t make payments on the loan.
Obviously, this is not something you want to do. Neglecting to pay what you’ve promised can wreck your credit and damage your relationship with the person who cosigned on your behalf.
Usually, a family member or close friend is the best candidate for a cosigner. It’s important to talk with them and make sure they feel comfortable doing this first. You can even offer to give your friend or family member an item as collateral if you’re worried about them hesitating to help. Sometimes, this is what you must do to get a personal loan.
There’s a variety of ways to get a personal loan with no income if you know how to approach the situation. Having the right paperwork in order and knowing what banks are looking for is half the battle when seeking to get a loan quickly.
Are you curious to learn more about loans but you have bad credit and think there’s no hope? Check out our post on how to get lenders to say yes, no matter what your credit score.
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