Compare personal loans for part-time employees

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

• Personal loans
• Short-term loans

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.

Frequently asked questions

• Can I get a car loan if I only work part time?

  You can, as long as you meet your lender’s income or DTI requirements. Check our car loans page to learn more about what you’ll need to apply.

• Can I get a mortgage with a part-time job?

  It’s possible, but you might not get the best deal. With such a hefty, long-term loan, lenders are typically want to see full-time employment. You might have more luck if you take on more than one job or have spent at least two years with the same employer.

• Can I qualify for student loan forgiveness if I'm a part-time worker?

  It depends, though probably not. If you’re applying for public student loan forgiveness, you’re only allowed to count jobs where you worked at least 30 hours a week if you’re not a salaried employee.

  You might want to read our guide to student loan forgiveness programs to learn more about how it works.