A guide to finding a loan when you’re working part-time hours.
Working irregular hours is common if you’re in college, a parent, a gig-worker or in a position where your hours change week to week. Lenders tend to see part-time workers as more of a risk because there is no guarantee of consistent work.
If you have part-time employment — don’t fret — it’s important to know that there are loan options out there for you.
Am I considered a part-time employee?
What constitutes a part-time employee is really up to the employer — there is no official definition in the Fair Labor Standards Act. Generally speaking, a part-time employee is one that works for a portion of the regular business day or week. Since the line is blurred, an employee could work 10 hours per week or 30 hours per week and still be considered a part-time employee. Part-time employees are generally contracted and are either offered benefits at a pro-rate or sometimes not at all.
Part-time workers: What are your loan options?
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.
They’re 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 want to borrow a smaller amount, want to repay your loan in a few weeks or months or have bad credit.
|Provider||Loans offered||Minimum income||Other requirements||Learn more|
|Even Financial||Personal loan||No minimum, credit requirements apply||Must have a minimum credit score of 580+. Must be 18+ years old and be an American citizen or permanent resident.|
|Prosper||Unsecured personal loan||No minimum, must have proof of taxable income||Must be 18+ years old, an American citizen or US permanent resident and have a 640+ credit score.|
|SoFi||Personal loan||No minimum, must have steady employment and good to excellent credit||You must be a US citizen or permanent resident, and 18 years or older.|
|LendingPoint||Unsecured Personal Loan||$25,000 annually||Must 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.|
|LendingClub||Unsecured personal loan||No minimum, must have a low debt-to-income ratio to be considered||You 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 America||Auto loans||No minimum||Must have good credit and a low debt-to-income ratio|
|BBVA Compass||Express personal Loan||No minimum||Must have good credit and a low debt-to-income ratio|
|Chase||Auto loan, mortgage loan||No minimum||Must have a debt-to-income ratio under 43%|
|Citibank||Personal Loan||$10,500 annually||Must have a Citibank account|
|TD Bank||Unsecured and secured personal loans||No set minimum, though income is a factor in the approved loan amount||Must have a debt to income ratio of under 49%|
|U.S. Bank||Personal loans, unsecured lines of credit||No minimum, one of several factors considered in approval of loan amount||Must have excellent credit, verifiable income and a U.S. Bank account|
|Wells Fargo||Personal loan||No minimum||Must have good to excellent credit|
Short-term loans are typically available in 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.
|Lender||Loan type||Minimum income||Learn more|
|LendUp||Payday loan||No minimum|
|CashNetUSA||Payday loan, installment loan||No minimum, must have been employed for at least one month|
|Check into Cash||Payday loan||No minimum|
|ACE Cash Express||Payday Loan, installment loan, title loan||No minimum, requires a steady source of recurring income payments|
|Blue Trust||Installment loan||No minimum, must provide a verifiable source of income|
|Slam Dunk loans||Short term loan||$800 per month|
|HonestLoans||Installment loan||$800 per month|
|MaxLend||Installment loan||No minimum, income is one of many factors (such as pay schedule, method of payment)|
|OppLoans||Installment loan||Varies by state|
It can be expensive to borrow small amounts of money and borrowing may not solve your money problems if you’re in a debt cycle. If you need help managing bill and debts, 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 get approved for loans?
Here are some tips to increase the chances of getting your application green-lighted:
- Check the minimum income. You’ll need to ensure you meet the minimum income criteria with regards to employment requirements. Some lenders have set minimums while others care more about your debt-to-income ratio.
- Duration of employment. The longer you’ve been employed, the more stable your finances will appear to a lender.
- Direct deposit. Along with physical pay stubs, this will be a way for lenders to verify your income through your bank account.
- Get in touch with the lender. This is the best way to check anything before submitting your application and reduces the risk of rejection if you can identify any things that might make you not be approved.
Seven ways to appear as less of a risk to lenders
Part-time workers aren’t on the outside looking in when it comes to borrowing money. To tip the approval scale in your favor when applying for a loan, there a few things you can do:
- 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. However, some lenders will only want to see three or six months of steady employment in order for approval.
- Get a letter from your employer. It could help your application by providing a letter from your employer that confirms your employment and future work schedule.
- Make your current repayments on time. By making sure you have all of your ducks in a row when it comes your finances, stay on top of your bills to build a strong reputation as a responsible borrower.
- Don’t apply for multiple loans. Lenders are able to see any credit accounts and loans that you apply for and if you make multiple applications, you may appear desperate and as more of a risk.
- Save. If you can show evidence of your savings to a lender, they may be more inclined to give you a loan. For example, if you are looking to buy a car and need a $5,000 loan and have $2,000 saved, the lender may see you as less of a risk.
- Apply with your own bank. Your own bank will have more concrete evidence of your financial history than your credit file and if this history is positive, you’re more likely to be approved.
- Consult an accountant. When you apply for personal loans, an accountant can help you keep track of your tax returns, savings and spending.