How to get a loan as a part-time employee | finder.com

Compare personal loans for part-time employees

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If you only work part-time and want a personal loan, this is what you need to explore your options.

At some point or another, you may find you need a personal loan to tackle a kitchen renovation or pay for a child’s wedding. Unfortunately, if you’re a part-time worker, you’ll have a tough time finding lenders that accept your employment — especially if you’ve been looking at bank loans.

If you’ve been having trouble finding a lender that accepts part-time employment, consider your online loan options while you work on building your credit and making your application stand out.

Am I considered a part-time employee?

While there’s no official definition for what lenders consider a part-time employee, generally speaking, a part-time employee is someone who works less than 40 hours a week. And that’s a pretty big range: it can be someone who works 10 hours a week or someone who works 39. Both are considered part-time employees in a lender’s eyes.

Part-time employees typically work on contracts and bill their employers by the hour. They also might not be able to take advantage of benefits that full-time employees enjoy, like health insurance. If you aren’t salaried and work less than 40 hours a week, then it’s likely you’re a part-time employee.

Loan options for part-time workers

You can typically get a personal loan in an amount between $1,000 and $35,000 — though some lenders offer amounts as high as $100,000 for those with excellent credit profiles. Personal loans are typically repaid in three to seven years and are best for those with good to excellent credit scores.

Click over to short-term loans if you only need to borrow a smaller amount, want to repay your loan in a few weeks or months or have bad credit.

ProviderLoans offeredMinimum incomeOther requirementsLearn more
Even FinancialPersonal loanNo minimum, credit requirements applyMust have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.
ProsperUnsecured personal loanNo minimum, must have proof of taxable incomeMust be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.
SoFiPersonal loanNo minimum, must have steady employment and good to excellent creditYou must be a US citizen or permanent resident, and 18 years or older.
LendingPointUnsecured Personal Loan$25,000 annuallyMust have a fair credit score of 600 or better and a minimum annual income of $20,000. Must live in a state where LendingPoint services.
LendingClubUnsecured personal loanNo minimum, must have a low debt-to-income ratio to be consideredYou must be over 18 years of age, a permanent resident of the US or an American citizen, have a verifiable bank account and have a steady source of income.
Bank of AmericaAuto loansNo minimumMust have good credit and a low debt-to-income ratio
BBVA CompassExpress personal LoanNo minimumMust have good credit and a low debt-to-income ratio
ChaseAuto loan, mortgage loanNo minimumMust have a debt-to-income ratio under 43%
CitibankPersonal Loan$10,500 annuallyMust have a Citibank account
TD BankUnsecured and secured personal loansNo set minimum, though income is a factor in the approved loan amountMust have a debt to income ratio of under 49%
U.S. BankPersonal loans, unsecured lines of creditNo minimum, one of several factors considered in approval of loan amountMust have excellent credit, verifiable income and a U.S. Bank account
Wells FargoPersonal loanNo minimumMust have good to excellent credit

Short-term loans are typically available for amounts between $250 and $1,000 — though some go up as high as $5,000. These small-dollar credit products are designed to be repaid within a few weeks to months and typically don’t have credit requirements.

Be sure to check if the provider operates in your state before applying.

LenderLoan typeMinimum incomeLearn more
LendUpPayday loanNo minimum
CashNetUSAPayday loan, installment loanNo minimum, must have been employed for at least one month
Check into CashPayday loanNo minimum
ACE Cash ExpressPayday Loan, installment loan, title loanNo minimum, requires a steady source of recurring income payments
Blue TrustInstallment loanNo minimum, must provide a verifiable source of income
Slam Dunk loansShort term loan$800 per month
HonestLoansInstallment loan$800 per month
MaxLendInstallment loanNo minimum, income is one of many factors (such as pay schedule, method of payment)
OppLoansInstallment loanVaries by state

Do you really need a loan?

It can be expensive to borrow small amounts of money, and borrowing may not solve your money problems if you’re stuck in a debt cycle. If you need help managing bills and other debts, such as monthly credit card payments, contact your collector to see if you can work out a payment plan or reach out to a free financial counselor.

How can part-time employees increase their chances for approval?

While it may be a little bit tougher to get approved for a loan when you’re not a full-time employee, you still have a few ways that you can make your application stand out to a lender.

  • Check the minimum income. You’ll need to make sure you meet the lender’s minimum income requirement. As long as you have the cash flow to support a loan payment, a lender may be more likely to approve your application.
  • Maintain a low debt-to-income ratio. Some lenders care more about your debt-to-income ratio. This number shows how much disposable income you have each month after you pay off your debts, giving lenders a clear picture of what you can afford.
  • Stick with your employer. The longer you’ve been employed, the more stable your finances will appear to a lender, even if you’re only doing part-time work.
  • Sign up for direct deposit. Along with physical pay stubs, this will be a way for lenders to verify your income through your bank account. Stable part-time work will look good to a potential lender.
  • Get in touch with the lender. This is the best way to check everything before submitting your application, and it reduces the risk of rejection if you can identify any other areas that might need working on.

More tips to help your personal loan application

7 ways to appear less risky to lenders

Although part-time workers are generally considered to be a bigger risk when it comes to borrowing a personal loan, there are still ways to tip the scale in your favor.

  1. Work for a year, then apply. If you’ve been employed at the same place for at least 12 months, you’ll be considered much less of a risk. Better yet, some lenders only need to see three or six months of steady employment when you apply.
  2. Get a letter from your employer. It could help your application if you provide a letter from your employer that confirms your employment and future work schedule.
  3. Make your current payments on time. Lenders want to see a strong credit report with little to no negative spots. Make sure you stay on top of your finances by paying your bills on time and keeping your credit score high.
  4. Don’t apply for multiple loans. Lenders are able to see any credit accounts and loans that you apply for. If you apply for multiple loans, your credit score may lower a few points, making you appear as more of a risk.
  5. Build your savings. If you can show evidence of savings to a lender, it may be more inclined to give you a loan, especially if it’s a car loan or another secured loan that requires a down payment.
  6. Apply with your bank. Your bank will have more concrete evidence of your financial history than your credit file. If this history is positive, you’re more likely to be approved.
  7. Consult an accountant. When you apply for personal loans, an accountant can help you keep track of your tax returns, savings and spending. In addition, having an overview of your finances can help you decide if a loan is the right move.

Bottom line

While not all lenders are willing to work with part-time workers, most care more about the fact that you have a steady income and have a low debt-to-income ratio. Check the minimum rates before you apply for a loan to make sure you’re eligible. If the lender’s terms are unclear, reach out to customer service for a more solid answer.

And if you’d like to learn more about personal loans before you start filling out applications, you can read up on your options and the common documents you’ll need to apply on our personal loans page.

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