Many lenders consider new employees risky, especially if you've only been working a month or two. While you still have options, be prepared to pay a little bit extra in interest.
10 lenders that offer loans for new employees
These lenders have minimal requirements for how long you've worked with your current employer. Some might even accept you if you aren't employed but can prove you'll be starting a job soon.
How long do I have to work to get a loan?
You technically don't need a job at to get a personal loan as long as you receive benefits or have a creditworthy cosigner or coapplicant who's employed. Otherwise, it depends on the lender's employment requirements. In a handful of cases, you might be required to work for your current employer for a certain amount of time — usually six months to a year.
Other lenders like LendingPoint might require you to have a job for at least a year, regardless of where you worked. Even if a lender doesn't advertise employment requirements, it typically still considers it when evaluating your application. Generally, you need to be able to provide three recent pay stubs as proof of income if your lender requires you to have a job.
Can I get a loan with a job offer letter?
It might be possible with a lender like SoFi, which just requires you to have a start date in the next 90 days, 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 emergency personal 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.
Consider a pay advance app
There are apps that you can use to get an advance on your paycheck based on your hours worked. While some do require you to have been with a single employer for a few months, they are generally more flexible than personal loans. Some even offer flexible tipping options or low monthly membership fees to make it more affordable than other short-term options.
You can learn more about pay advance apps before downloading one. Keep in mind that you may need to turn on your phone's location and give the app access to your bank account information to qualify.
What if I've lost my job because of the coronavirus?
A lender may still consider you if you've temporarily or permanently lost your job because of the COVID-19 pandemic. However, you will need to show proof that you still have income — unemployment benefits count. You may also want to apply for temporary employment to help boost your chances of approval.
7 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.
- 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.
Alternate forms of income
Not all income has to be from employment. If you have a regular source of income, a lender may still consider you for a loan. This can include:
- Unemployment benefits
- Public assistance
- Social Security benefits
- Tips or royalty payments
- Child support
- VA benefits
- Pensions or retirement accounts
- Dividend payments
Income from your spouse may also be eligible, although it depends on your lender. If you're unsure, check its requirements before you apply.
What other factors 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.
- Profession. Some lenders are more lenient with certain high-earning fields — like medicine or law — even if you just started a 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.
It might be a little more costly — and you might have to accept slightly less competitive terms — but you should be able to find a lender that fits your needs even if you've only been employed for a few months.
Frequently asked questions
Our answers to common questions about getting a loan as a new employee.
How do I get a personal loan without pay stubs?
You can get a personal loan if you don't have pay stubs by looking for a lender that accepts bank statements or other proof of employment instead. Pay stubs are the easiest proof of income, but most lenders are willing to accept other documents.
However, it might take longer — and there's a chance your lender might not consider it enough proof that you can afford repayments.
What should I do if I'm denied for a personal loan?
First, you should identify the reason you were denied. Check your credit report, wait to have a longer employment history and look into other lenders before applying again.
Should I take out a payday loan?
Payday loans are a risky form of credit, and many often require you to have been employed for at least a few months. Because of the high cost, it may not be a wise decision to borrow a payday loan if you're a new employee. However, they are an option if you need to cover an emergency expense.