Best Personal Loans of Feb. 2023

You can get a personal loan with no income by getting a loan with a cosigner or by getting a secured personal loan. You could also get a loan from a trusted friend or family member or list an alternative form of income on your application if you don't have income from a job.

Ways to Get a Personal Loan with No Income

Get a loan with a cosigner

A cosigner who has a high income can help improve your chances of getting approved for a loan. However, the cosigner will be responsible for the loan if you cannot make the payments.

Apply for a secured personal loan

A secured personal loan requires you to put up something as collateral, such as a vehicle or money in a savings account. The lender can keep the collateral if you don't repay the loan. These loans are much less risky to lenders, which makes them easier to get.

Get a loan from a friend or family member

A friend or family member may be willing to loan you money if you don't currently have income. However, if you don't repay what you borrow, you risk damaging your relationship.

Use alternative forms of income on the loan application

If you don't have a primary income from a job, most lenders allow you to add alternative forms of income on your personal loan application. Some alternative forms of income include unemployment benefits, child support, alimony or disability benefits.

If you think a personal loan is right for you, you can estimate your approval odds with the free pre-qualification tool on WalletHub.

Improve your credit score                                  

Having a high credit score may make up for having low income, but not if you have no income at all. If you have excellent credit, you may be able to get a loan with a low APR, as well. You can get customized credit score improvement advice when you sign up for a free WalletHub account.

Additionally, you do not need a primary income to get a credit card. You can use alternative forms of income on a credit card application, such as alimony or disability benefits. Using a credit card to get a cash advance is also an option, but cash advances have an expensive fee and high APR.

Auto title loans may be advertised as loans for people with no income, too. These loans should be avoided since they often have very expensive fees and short repayment periods. You also risk losing your vehicle.

Yes, you can borrow money if you are unemployed by using an alternate source of income on a loan or credit card application, getting a cosigner, or borrowing from a friend or family member. Borrowing money while unemployed is more difficult than borrowing when you have a job, but it is possible.

Ways to Borrow Money If You're Unemployed

Use alternate sources of income on a loan application

Many lenders let you use an alternative form of income on a personal loan application, such as child support, alimony, retirement benefits and rental property proceeds. You will still need to meet the credit score requirement and other general requirements, though.

Use other sources of income on a credit card application

You can use alternate forms of income on credit card applications if you don't have a job. Some other sources of income you can use include disability benefits, alimony, and income from a rental property.

Get a cosigner

Getting a cosigner allows you to take advantage of their higher credit score and income to boost your approval odds. However, the cosigner must promise to pay off the loan if you are unable to.

Borrow from friends or family members

Borrowing from friends or family members may provide better terms than a conventional loan. Keep in mind that if you don't repay the loan, you may strain your relationship.

Get a cash advance

A cash advance lets you borrow a portion of your credit card limit via ATM withdrawal or a check that's provided by the card issuer. This borrowing method is not worth it due to the expensive fees.

Take out a payday loan or auto title loan

Taking out a payday loan or auto title loan works in a pinch, but it's not smart to do so. These loans often have high fees and short repayment periods.

You can get a personal loan for almost anything, such as consolidating debt, improving your home or making a large purchase. The short list of things you cannot use a personal loan for includes illegal activities, gambling, investments and, sometimes, post-secondary education expenses.

10 Ways to Use a Personal Loan

1. Debt consolidation
2. Home improvements
3. Medical bills
4. Emergency expenses
5. Large purchases
6. Starting a small business
7. Car repairs
8. Veterinary costs
9. Weddings
10. Vacations

Using a personal loan for a wedding or a vacation is possible, but it's best to save your money to pay for these fun events. It's not smart to go into debt for these expenses.

If you think getting a personal loan is right for you, check out WalletHub's picks for the best personal loans. Then, you can estimate your potential rates with our free pre-qualification tool.