Just starting at a new job? A personal loan may not be out of your reach.
When reviewing a loan application, lenders check a range of factors to make sure you aren’t too risky, and a major part of the assessment is your employment. Most will require you to be employed, meet a minimum income requirement and have been employed for a certain amount of time. This doesn’t mean you can’t get a loan, but your options will depend on a few different factors.
What lenders require minimum employment?
|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||A minimum of 12 months at your current job is a plus||$25,000 annually|
|LendingClub||No minimum||Must have a low debt to income ratio to be considered|
|Laurel Road||No minimum||Debt to income ratio under 43%|
|NetCredit||No minimum||No minimum|
|Bank of America||No minimum||No minimum, income is one of many factors for approval|
|BBVA||Typically requires paystubs from the previous 30 days to verify income||No minimum, one of many factors that determines the approved loan amount|
|Chase||N/A||Debt to income ratio under 43%|
|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 of loan amount|
|Wells Fargo||No minimum, but requires all employer details for the past 3 years||No minimum|
How can I get approved for a personal loan as a new employee?
If you’ve just started or are about to start a new job, try to keep these points in mind when filling out your 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.
- 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 — usually three to six months — to show 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.
- Check your credit history. If you aren’t sure what’s on your credit file or how good your credit score is, it’s worth checking before you apply.
- Let your employer know. Lenders may want to confirm your employment with your current employer, so giving them a heads-up before this happens can help speed up the process.
- 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 factors, which can include any of the following:
- Age of majority in your state. Lenders don’t base credit decisions on your age, but you need to be at least 18 years old 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 43% of your income, although lower is better.
- Credit history. Banks and credit unions will normally require that you have good credit. However, there are bad credit personal loans available.
- Residence. You will usually need to be a US citizen or permanent resident to be eligible, but some lenders do consider nonresidents for personal loans. In addition, some lenders may not operate in a few states based on licensing.
Getting a personal loan is tough, and the process is only made more 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 six months, there are plenty of online lenders out there that can finance your loan. Browse your personal loan options to find a lender that suits you.