Just started a job? Learn how to up your chances of getting approved.
If you just started a new job, it can be tough to find a lender that’s willing to invest in you. Many consider new employees risky, especially if you’ve been at the job for only a month or two. While you still have options, be prepared to pay a little bit extra in interest.
What are the minimum employment requirements set by lenders?
Every lender has its own minimum income requirement. It can vary from a few months’ employment to simply having proof of regular income. The table below contains some of our top options, but when you’re looking for a personal loan, don’t be afraid to spend time doing research so you can find the best loan for your needs.
| Lender | Minimum time employed (full-time) | Minimum income | Learn more |
|---|---|---|---|
| Even Financial | Varies by lender | No minimum | |
| Prosper | No minimum | No minimum, must have proof of taxable income | |
| SoFi | Must be employed, have sufficient income from other sources or have an offer of employment to start within the next 90 days | No minimum | |
| LendingPoint | No minimum, but at least 12 months at your current job will help | $25,000 annually | |
| LendingClub | No minimum | Must have a low debt to income ratio | |
| Laurel Road | No minimum | Debt to income ratio under 43% | |
| NetCredit | No minimum | No minimum | |
| Bank of America | No minimum | No minimum but income is a factor of approval | |
| BBVA | Typically requires paystubs from the previous 30 days to verify income | No minimum income, but it is considered | |
| Chase | N/A | Debt to income ratio under 43% | |
| Citibank | None | $10,500 annually | |
| TD Bank | Must provide proof of income for the previous 2 years | Income is a factor in the approved loan amount, must have a debt to income ratio of under 49% and a credit score of 680+ | |
| US Bank | No minimum, just a factor in approval | No minimum, just a factor in approval | |
| USAA | N/A | N/A | |
| Wells Fargo | No minimum but requires all employer details for the past 3 years | No minimum |
8 tips to increase your chances of approval as a new employee
If you’ve just started a new job or are about to start working, keep these eight tips in mind to help improve your ability to borrow a personal loan.
- Apply for a lower amount. Beyond saving you money, only requesting the minimum amount you need to borrow will help increase your chances of approval. Lenders tend to be less hesitant to lend if you can prove you’ll be able to return on their investment.
- Offer security. Rather than opting for an unsecured personal loan, a secured loan is less risky for a lender. It does mean offering up some collateral, but it might make it easier to get that approval notice.
- Wait to apply. Consider if you really need a personal loan at this moment. If you can wait a few months, your chances of being approved increase. By waiting until your probationary period is up — usually three to six months — you show the lender that you have a steady source of income.
- Meet the other minimum requirements. Lenders have a range of minimum requirements you need to meet that extend beyond employment. Before you fill out an application, make sure you meet these.
- Check your credit. If you aren’t sure what’s on your credit file or what your credit score is, check before you apply. This will also give you the chance to correct any mistakes that may be listed on your credit report.
- Let your employer know. Lenders may want to confirm your employment with your current employer. Give your employer a heads up beforehand to help speed up the process.
- Provide supporting documentation. If you have any assets or savings, you should provide that information with your application. This may increase the lender’s trust that you can repay your loan. And if you don’t qualify for that unsecured option, a lender may be willing to discuss using these as security.
- Contact your lender. Don’t hesitate when it comes to calling the lender’s customer support line to discuss exact requirements. You may be able to get an idea of what the lender expects in addition to the application, which could improve your chances.
What else do lenders consider?
These factors may also impact your ability to borrow a personal loan. Be sure you meet a lender’s basic eligibility requirements before applying to save yourself time — and a potential dip in your credit score.
- Employment type. Some lenders will accept a regular source of income, including income from other sources besides employment. Others may accept any employment, including part-time hours or self-employment. And still others may not accept anything besides a full-time job.
- Debt-to-income ratio (DTI).A general rule of thumb is that your debt should take up no more than 43% of your income, though it varies by lender. The lower your DTI, the better — for your and for your lender.
- Credit history. Banks and credit unions will normally require that you have good to excellent credit when you apply. However, there are bad credit personal loans available from nontraditional lenders.
- Citizenship status. The majority of lenders require that you be a US citizen or a legal resident of the US in order to qualify for a loan. If you aren’t, there are still some lenders that consider nonresidents for personal loans.
- Age. Lenders don’t base credit decisions on your age, but you need to be at least 18 years old in most states to be eligible for a loan. Some states, like Alabama, require you to be 19.
Bottom line
Finding a personal loan is only made more difficult when you’ve just started a new job. While not all lenders accept those who have been employed for less than six months, there are lenders out there that will consider you for a loan.
It might be a little more costly — and you might have to accept slightly less competitive terms — but you should be able to browse your personal loan options and find a lender that fits your needs.
