Can You Get a Loan with No Proof of Income?

Getting a loan without proof of income is a viable option.

Many people seem to think that you can’t get a loan if you don’t have a job, but many lenders will loan to the unemployed. In many cases, those that are seeking a loan have run into financial hardship, even if they’re employed.

Fortunately, lenders have introduced a type of loan referred to as a “no income loan.” These are the best loans for anyone that can’t prove their income, but there are other options for you, as well.

Read on to learn everything you need to know about getting a loan with no income or low credit.

What Are No Income Loans?

Put simply, no income loans are loans that you can apply for that don’t require you to prove your income. Most lenders require you to prove your income so they can decide if you’re trustworthy. However, no income loans exist to help those that are financially struggling.

Lenders want to know that you’ll be able to pay the loan back. When you don’t have an income, it can be difficult to prove that. Providing that you have good credit and little to no debt, there’s a good chance you can apply for a loan without income.

Qualifying for a No Income Loan

Qualifying for a no income loan requires you to do the same things that you would with any other loan. Lenders will interview you to learn more about you. They’ll want to know why you’re seeking a loan, why you don’t have an income, and how you plan to repay it.

You will need to bring any documents relating to your financial history. This will include loan history, past income, and current debt.

Alternative Income Sources

Although you can’t show them current employment, you may have alternative sources of income that could help you.

  • Retirement/Savings Account

  • Child Support

  • Alimony Payments

  • Unemployment Benefits

  • Partner Income

Any of these will be beneficial because it will show the lender that you do have some form of income. While it isn’t income from a job, it’s steady enough to show that you can make payments.

The Power of Collateral

One thing that many people fail to do when seeking a loan with no credit or income is offer collateral. When it comes to large loans, most lenders take some form of collateral because it allows them to have a cushion if the borrower doesn’t make payments.

Collateral is when you temporarily give the lender something that they will hold on to until you’ve completely paid them back. When you fail to make payments, the lender has the right to sell whatever you gave them so they can make their money back.

In the case of getting a loan without income, your best bet is to offer collateral no matter the size of the loan. Even if the loan is only $1k, providing collateral will greatly increase your chances of getting approved. You can use a car, jewelry, property, etc., anything worth a large sum of cash.

Bringing a Cosigner

Similar to offering collateral, getting a cosigner will increase your chances of getting approved because it gives the lender a cushion. Cosigners are people that sign the loan with you, making it a part of their responsibility if you don’t make payments.

If you’re negligent and don’t make a payment, your cosigner will be responsible for paying. This will help you get a loan because the lender will know they can fall back on someone else. However, your cosigner’s credit score can also decrease if you don’t make payments.

Building Credit

Credit will be your best friend when trying to get personal loans without an income. Lenders primarily look at credit scores to determine if someone’s financially eligible. With a bad credit score, there’s a good chance that you’ll be denied because you have a history of not paying things on time.

If you already have a high credit score, you’re off to a great start. For anyone that needs to build credit, you can do a variety of things:

Make Payments on Time

Paying debt on time is one of the best ways to raise your credit score, and it will ensure lenders that you won’t miss payments. Try to make payments as early as possible and do not pay anything late.

Don’t Hold On to Debt

While many people think that making minimum payments will help them increase their score, it won’t do much for you. You’re better off paying the debt as soon as possible so that you can show you don’t need to rely on borrowing money.

Look for Low Credit Loans

A no credit check loan would be a good option for anyone with low credit because you won’t have to rely on a good credit score to borrow. You can check out these personal loan options if you’re having a hard time finding some.

Now You Know How to Get a Loan with No Credit and Proof of Income

Getting a loan without showing proof of income is as simple as looking for a lender that offers no income loans. Even if a lender offers no income loans, you’ll want to increase your credit score to ensure you’re approved for a loan.

We recommend that you start seeking employment if your finances aren’t in a good place because you’ll be able to start saving money. After increasing your credit score and cash flow, you’ll have no problem getting a loan in the future.

Browse our articles to learn more about everything related to personal finance.

About RJ Frometa

Head Honcho, Editor in Chief and writer here on VENTS. I don't like walking on the beach, but I love playing the guitar and geeking out about music. I am also a movie maniac and 6 hours sleeper.

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