How to get a loan if you just started a new job

When reviewing your loan application, lenders check a range of factors to make sure you aren’t too risky of a borrower, and a major part of the assessment is your employment. Most lenders require that you be employed for at least 3 months and meet their minimum income. They do this because they want to make sure you have the means to pay back what you borrow.

Can I get a loan if I just started working?

Yes, it’s possible to get a loan if you just started a new job. While many lenders consider new employees risky, especially if you’ve only been working a month or two, you still have options. Just be prepared to pay extra in interest.

Every lender has its own minimum income requirement. The table below shows a few options for new employment loans with little-to-no employment length requirements.

Compare loans for new employees

Emergency loan	Interest rate	Loan amount	Loan term	Key features	Link
Personal Loan	8.00% - 46.96%	$500 – $50,000	4 - 60 months	Must have an income	Go to site
Personal Loan	9.90% - 46.96%	$500 – $35,000	6 - 60 months	Need steady income for at least 30 days	Go to site
Early Pay	0%	$20 – $250	Next pay cycle (61 days max.)	Approval is based on zero NSF fees in your bank account and having an income	Go to site
Credit Line	0%	$30 – $150	30 days, extendable	Approval is based on having an income	Go to site
Personal Loan	32.00%	$500 – $2,500	9 - 36 months	Must have an income	Go to site
Payday Loan	Varies by province	$100 – $1,500	7 - 62 days	Minimum income of $800	Go to site
Car Title Loan	9.95% - 29.00%	$1,000 – $50,000	12 - 72 months	No job or income requirements but you must use your paid off car (10 years old or newer) as collateral	Go to site

How long do I have to work to get a loan?

Lenders usually want to see at least 3 months at a new job because this is the typical length of a probationary period. However, some lenders are more flexible than others when evaluating applications. Your employment history is just one of several factors that they look at, and if you’re less than 3 months at a new job, then lenders may place more weight on other factors. If you have a good credit score and a low debt-to-income ratio, these can help you get approved.

Payday loans for new employees

A type of loan you can take out with a new job is a payday loan. With a payday loan, you borrow between $100 and $1,500, which you pay back by your next payday. Payday loans overall have more lenient requirements than personal loans, which means it’s easier to get one with a new job, but they are also much more expensive and should only be a last resort.

Can I get a loan with a job offer letter?

It might be possible as long as you have another source of income. This could help you qualify for a larger loan amount, since you have proof that your salary will increase. However, it likely won’t help you get a loan if you currently don’t have any regular income.

Can I get a loan if I’m temporarily employed?

It’s possible to get a loan if you’re working a temporary job. However, some lenders might not be willing to work with you unless you have another job lined up or another source of income. It can help if you’ve consistently worked in the same field for at least a few years. This shows that you can consistently bring in income, even if you don’t have a traditional full-time job.

You may also want to consider urgent emergency loans if you need money quickly for something like rent. While many of the options you’ll have available to you are expensive short-term options, if you know you’ll be employed soon, they can be useful.

How can I get approved for a loan with a new job?

If you’ve just started or are about to start a new job, try to keep these factors in mind when filling out your loan application.

• Apply for a lower amount. Lenders may be more hesitant to approve you if you haven’t been at your job long. Calculate how much you need and borrow the minimum amount.
• Offer security. A secured loan is less risky for a lender and you may be more likely to be approved. Keep in mind you may lose your collateral if you can’t make your repayments.
• Wait to apply. Even a few months of work could give you a better chance of being approved. Wait until your probationary period is up to show you have a steady source of income.
• Meet the other minimum requirements. Lenders have a range of basic eligibility requirements you need to meet that extend beyond employment.
• Check your credit history. If you aren’t sure what’s on your credit file or what your credit score is, it’s worth checking before you apply.
• Provide as much supporting documentation as possible. If you have any assets or savings, you should provide that information with your application as this increases the lender’s trust that you can repay your loan.
• Talk directly with the lender. Contacting your lender before you apply can help you understand the specific criteria you’ll need to meet if you want to have a good chance at approval.

What else do lenders consider?

Lenders look at a variety of eligibility factors, which can include any of the following:

• Your age. Lenders don’t base credit decisions on your age, but you usually need to be at least 18 years old, or the age of majority in your province or territory, in order to be eligible to apply.
• Employment type. You may need to be employed full-time and you may need to earn a certain amount of income to be eligible. Some lenders don’t accept part-time or freelance work as sufficient employment.
• Debt-to-income ratio. Lenders like to see that you have a steady stream of cash coming in. A general rule of thumb is that your debt should take up no more than 40% of your income, although lower is better.
• Job title. Lenders may use your job title to cross-reference with your salary and to also predict how likely you are to default on loan repayments.
• Credit history. Banks and credit unions will normally require that you have good credit. However, there are bad credit personal loans available.
• Housing situation. Many lenders tend to prefer homeowners over renters.

How to apply for a loan with a new job

Once you’ve compared your loan options and decided on the best fit for you, head to the lender’s website to apply online via its secure application page. You’ll need to provide personal information, like your contact, employment and income details.

Before you apply, make sure you meet the eligibility requirements and have the necessary documents on hand to streamline the application process.

Required documents

You will usually need to provide the following:

• Your personal details. This includes your full name, date of birth, address, email address, phone number and Social Insurance Number (SIN).
• Your employment details. You may need to provide your employer’s name and contact information.
• Your income details. You may need to submit pay stubs or bank statements to provide proof of your income.
• Your banking details. You will need to provide the name of your bank, the branch address and transit number and your own personal bank account number.

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Bottom line

Getting a personal loan is difficult when you need a loan but have only just started a new job. While not all lenders accept those who have been employed for less than 3 months, there are plenty of online lenders out there that can finance your loan.

Frequently asked questions

• What should I do if I get denied for a personal loan?

  You should first identify the reason why you think you've been denied for the personal loan. Check your credit report, research other lenders and then apply for another personal loan when you think you'll be approved.

  Try not to apply for too many loan products in the same time frame as this can negatively affect your credit score and raise red flags with lenders if they see you've been applying for too many loans.

• Should I take out a payday loan with a new job?

  You could. There are many different payday loan options available, but be aware that this option will typically cost more than a personal loan and maximum borrowing amounts are rather low. With a payday loan, you will face excruciatingly high interest rates and short repayment terms.

• What if I have assets I can offer as security?

  Having an asset as security could lower the interest rate you're offered because the lender is taking on less risk. Keep in mind if you fail to repay the loan your asset will no longer be your property.

• Can I get a loan if I have a new job and bad credit?

  Yes, it's possible to get a loan if you're newly employed and have bad credit, but you'll only get approved for higher interest loans.