If you only work part-time and want a personal loan, this is what you need to explore your options.
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.
|Provider||Loans offered||Minimum income||Other requirements||Learn more|
|Even Financial||Personal loan||No minimum, credit requirements apply||Credit score of 550+, American citizen or permanent resident and ages 21+|
|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||Ages 18+, US citizen or permanent resident|
|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||US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.|
|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 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.
|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|
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.
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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.