The Best Personal Loans for the Unemployed

A personal loan can help you finance a big purchase or pay off your credit card debt. Getting a personal loan may seem difficult if you are unemployed, but this is not always the case.

If you are unemployed or do not have traditional proof of income, you may still obtain a personal loan for a large expense or to help you pay off your debt. Your credit history, credit score, and debt-to-income ratio will be determining factors in approving your loan application. 

What are the best personal loans for unemployed people? Below, we will look at the best personal loans available when you are unemployed.

Updated on: December 11, 2025. This article has been reviewed and updated with the most current information available as of 2025. Financial assistance programs and lending rules vary by state and may change, so always check official sources for the latest eligibility and requirements.

Disclaimer: This content is for informational purposes only and does not constitute financial, legal, or tax advice. Loan approval is never guaranteed. Borrowing while unemployed carries meaningful risks—explore grants, assistance programs, and non-loan options first.

Key Takeaways

• You can get a personal loan while unemployed by showing alternative income sources like benefits, freelance work, or spousal income.
• Lenders consider more than employment, including your credit score, credit history, and debt-to-income ratio.
• Income-based loans focus on your ability to repay, not just your credit score, making them ideal for non-traditional earners.
• Simple Fast Loans offers quick, online personal loans from $200 to $3,000—even without traditional income or perfect credit.
• Loan decisions are fast, with same-day or next-day funding and no hidden fees.
• Explore all options carefully, including credit cards or alternative loans, and choose what fits your financial situation best.

Assistance Options Before Considering Loans

Many unemployed individuals qualify for programs that reduce the need for borrowing.

Unemployment Insurance (UI)

Weekly income replacement; apply immediately after job loss.

SNAP, TANF, WIC, and LIHEAP

Help with food, childcare, and utilities—reducing financial pressure.

211.org

Connects you with emergency cash assistance, nonprofits, rent relief, and transportation support.

Credit Counseling (Nonprofit)

Can help negotiate lower payments or create a debt plan without adding new debt.

Using these supports first may prevent the need for a loan altogether or reduce the amount you’d need to borrow.

Personal Loans Defined

A personal loan is a loan provided by a bank or other financial institution that is repaid through a set number of payments made over a set period of time. You can obtain a personal loan for any reason. For example, they can be used for bill consolidation, large purchases, or emergency expenses. Most personal loans do not require any collateral to receive them.

With a personal loan, you can access a set amount of money with a set payment schedule. With a set schedule, you won't have to worry about the revolving payments that come with credit cards.

Getting a Personal Loan If You Are Unemployed

You can get a personal loan when you are unemployed or do not have traditional proof of employment. However, it can limit your options and the amount of money you can obtain.

You can use alternative income as proof you can repay the loan. For example, unemployment benefits, retirement benefits, your spouse's income, and freelance income can all be used as proof you can repay a personal loan. Other income sources include interest from stocks, bonds, or other investments and any monthly alimony or child support you receive.

How To Get a Loan Without Proof of Income

Some lenders will accept applicants without traditional W-2 employment.
However, the amount you qualify for—and whether you qualify at all—depends on your credit, debts, and ability to repay. A low credit score does not automatically disqualify you, but it may limit your loan options or increase the cost.

Other Factors for Getting a Personal Loan  

Aside from proof of employment, other factors are considered when applying for a personal loan. For example, lenders will also review your ability to repay the loan, your credit score, and your credit history.

Credit Score

Your credit score will be the most significant determining factor when you apply for a loan. It will give the lender a look at the current state of your credit. The higher your credit score, the better your chances of securing a loan. However, getting a loan with bad credit or no credit is still possible.

If you are unemployed and have been turned down for credit in the past, you may still be able to get a personal loan.

Credit History

A good portion of your credit score consists of your credit history. Therefore, it will be a large factor when qualifying for a personal loan. In addition, your payment history on other credit cards and other loans will be considered when you attempt to qualify for new lines of credit.

Having a history of late or missed payments will not disqualify you from obtaining a personal loan. However, if you have had past credit issues, you will need to contact a loan officer to find a personal loan that will fit your needs.

Debt-to-Income Ratio

Your debt-to-income ratio may also be a factor when you are applying for a personal loan. It calculates your monthly debt payments divided by your gross income. Your gross income is the amount you make before any taxes or deductions are taken out. It is used to determine your ability to repay the loan.

A high debt-to-income ratio may show you lack the income to repay the debts you have or wish to take on. It would be an indication that you have taken on too much debt. A loan officer may decline your loan if you have a high debt-to-income ratio.

Alternatives to Personal Loans

If you need fast cash for an emergency, there may be other options to consider to get you the money you need. For example, you might be able to get a personal loan or a credit card.

Personal loans are similar to personal loans, with set amounts to borrow, but flexible loan repayment terms. You are not required to spend the entire personal loan amount. They are more flexible than traditional loans.

Opening a new credit card may help relieve your financial burden when you are unemployed. It can provide you with the immediate funding you need, with the option to pay it back over time. However, you should consider all your options to make the best financial decision before taking out any loan or credit card.

Income-Based Loans

Income-based personal loans are ideal for individuals with low or no credit or those without traditional employment.

Instead of focusing heavily on your credit report, these loans are approved based on your ability to repay, primarily your income. That income may come from employment, benefits, self-employment, or other sources.

How Do Income-Based Loans Work?

The concept is simple: If you have income—even non-traditional—you may qualify.

• Approval is based on your income, not just your credit score
• No collateral is needed
• Fast decisions and funding, often within 24 hours

This makes them a practical option if you're between jobs or need cash fast.

Simple Fast Loans for Unemployed Loans

If, after reviewing all assistance options, you decide a loan is still necessary, Simple Fast Loans offers installment loans ranging from $200 to $3,000, depending on state availability and applicant eligibility. Approval is not guaranteed.

The loan process is conducted online, and their decisions are immediate. They offer same-day funding for loans completed before 2 p.m. and funding for loans completed after 2 p.m. the following business day.

To apply with Simple Fast Loans, you will need your name, address, an active checking account, and proof of ID. Simple Fast Loans offers loans to anyone over 18. Income statements and Social Security numbers may also be required, depending on the loan you are applying for.

All the terms and conditions are disclosed upfront when applying for a loan with us. There are never any hidden fees. All of the repayment schedules are disclosed before the loan is finalized.

Obtaining an online personal loan when you are unemployed or do not have proof of income is more complex, but it is still possible. There are many options to obtain a personal loan for emergencies and large purchases, even if your credit is poor.