Compare personal loans for new employees

Have you recently started a new job but need extra cash? See if you can get a personal loan here.

Check your eligibility with multiple lenders

Find lenders that can approve you

No impact on your credit score

Fast funding with no hidden costs

Getting a loan when you’re newly employed won’t always be easy. However, the good news is there are still options out there for you.

Name Product Ratings Customer rating Finder score Total Payable Monthly Repayment Representative APR Link
Everyday Loans Personal Loan
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Representative example: Borrow Β£10,000.00 over 3 years at a rate of 99.9% p.a. (fixed). Representative APR 99.9% and total payable Β£24,451.56 in monthly repayments of Β£679.21.
Admiral Personal Loan
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Representative example: Borrow Β£10,000.00 over 3 years at a rate of 16.9% p.a. (fixed). Representative APR 16.9% and total payable Β£12,606.12 in monthly repayments of Β£350.17.
Novuna Personal Loan
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Representative example: Borrow Β£10,000.00 over 3 years at a rate of 7.4% p.a. (fixed). Representative APR 7.4% and total payable Β£11,142.00 in monthly repayments of Β£309.50.
M&S Bank Personal Loan
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Representative example: Borrow Β£10,000.00 over 3 years at a rate of 6.2% p.a. (fixed). Representative APR 6.2% and total payable Β£10,956.96 in monthly repayments of Β£304.36.
Finio Loans Personal Loan
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Representative example: Borrow Β£10,000.00 over 3 years at a rate of 39.9% p.a. (fixed). Representative APR 39.9% and total payable Β£16,091.64 in monthly repayments of Β£446.99.

Please note: You should always refer to your loan agreement for exact repayment amounts as they may vary from our results.

Late repayments can cause you serious money problems. See our debt help guides.

Can I get a loan if I just started a new job?

It is possible to get a loan as a new employee, but it will be harder compared to someone who has been in the same job for several years. This is simply because you won’t have the evidence of steady, dependable income and employment in your current role that lenders prefer to see before they’ll approve you for a loan.

While lenders look at a range of factors when considering your loan application, your employment situation will be high on the list. Many banks and loan providers will require you to be employed full-time, meet a minimum income threshold and to have been in your job for a certain length of time to be eligible for a loan.

However, if you recently started a new job, it doesn’t necessarily mean that you won’t be approved for a personal loan. Some lenders will say “no”, but if you check your eligibility with a large pool of diverse lenders, then you stand a better chance of finding one that’ll say “yes”. Even better, you can do this without impacting your credit score (thanks to “soft searching”) and you don’t necessarily have to go to each lender one at a time, if you use a good loan matching service.

How can I get approved for a loan as a new employee?

If you need a personal loan but have only recently started a new job, the following tips can improve your chances of getting accepted:

  • Wait to apply. Every month that you are in your new job will help to improve your chances of being approved for a loan. At the very least, try to wait until your probationary period is over, which is usually 1 to 6 months. This will show the lender that you are less likely to lose your employment and that you have a secure source of income.
  • Start small, start short. Borrowing smaller amounts – ideally over a short period – may help increase your chances of getting accepted. Work out the lowest amount you need to get by and don’t apply for more. Aim to pay it back in as short a time as possible – that’ll usually work out cheapest for you, and from the lender’s point of view, a shorter loan means fewer repayments that you might miss.
  • Check your credit history. Before applying for a loan, use a fee-free online credit score checker to find out how likely you are to get accepted. If your credit score is low, take steps to improve it, such as paying bills on time, correcting mistakes on your credit report and getting yourself on the electoral roll.
  • Check your eligibility before you apply. Pretty much all lenders now provide a “soft search” facility to give you an indication of whether you’re likely to be accepted for a loan. This avoids any impact on your credit score, and although it does get recorded in your credit file, only you can see it. When you go on to formally apply for credit, the lender then performs a “hard search”. This has a small negative impact on your credit score and is recorded on your credit file, visible to future prospective lenders. Too many of these in a short space of time can look like financial desperation to prospective lenders.
  • Check multiple lenders in one go. There are plenty of brokers out there (including Finder!) that can perform soft searches with a panel of lenders for you in one fell swoop. This saves you time and effectively means you’re hedging your bets – rather than trying one lender (who might turn you down), you’re trying several and finding out which one can offer you a loan and what each will charge you for the privilege.

Occasionally, talking directly to the loan provider before you apply can help you get to grips with the criteria they’re using (realistically, we all know it can be hard to get sense out of a big bank, *sigh*). In a few edge cases, such as particularly large loans or unusual employment circumstances, a lender might reach out to you for a discussion or to request supporting documentation. Providing this can help to reassure the lender that you’ll be able to repay a loan.

Sometimes a lender may want to confirm your employment details, in which case letting your employer know beforehand can help to make this process go smoothly.

Secured loans

You might also consider securing your loan – that means using an asset (typically a property or car) as collateral against the loan. Lenders usually see a secured loan as less of a risk than a regular personal loan and therefore you’re more likely to get approved.

However, be aware that if you fail to make repayments, you’re at risk of losing the item you secured your loan against. Be particularly cautious when securing a loan against your home – it will be at risk of repossession if your circumstances change and you can no longer afford to make repayments.

  • Warning: Late repayments can cause you serious money problems. For help, contact the government’s free money advice website, MoneyHelper.

What do lenders consider when you apply for a loan?

As well as looking at how long you’ve worked with your current employer, lenders will look at factors such as the following:

  • Your age. Lenders don’t base credit decisions on your age, but you do need to be at least 18 years old, and sometimes 21, to be eligible to apply. Some lenders will also have an upper age limit, which is usually around 70. A lender will want to know how close you are to retirement, and therefore, how long you’re likely to remain employed.
  • Type of employment. Some lenders will require you to have full-time employment and to earn over a certain amount. You may also need to have your salary paid into the bank account that you use to make loan repayments. Some lenders don’t accept applications from those who are in part-time or self-employed work. If a lender does accept self-employment, you will be asked to prove your income by providing recent tax returns and bank statements.
  • Credit score. Mainstream banks and credit unions will usually require you to have a good credit rating with no major recent slip-ups. If you have a history of successfully repaying loans and/or credit cards, you’re more likely to be approved for credit. Bad credit personal loans are available, but are likely to charge a higher interest rate.
  • Your income, debt and credit usage – or current account turnover. Lenders will also assess your income, outstanding debt and credit usage to determine whether you would be able to afford your loan repayments. This will be based on information in your application and credit file. The more disposable income you have, the less risky a lender will view you. A general rule is that your debt should take up no more than 43% of your income, although the lower the better.
  • Residence. You will typically need to be a permanent UK resident. Some lenders will consider non-residents, but the interest rates on these loans are likely to be higher.
  • Type of housing. Lenders will consider whether you own or rent your home when determining your financial stability. They will also take into account how long you have been at your current address. The longer you have lived there, the better.
  • Your bank. You should always shop around to make sure you’re getting the best deal. However, it can sometimes be easier to get approved for a loan from the same bank you hold your current account with.

What are the alternatives to personal loans for new employees?

Personal loans are not the only way to borrow if you’re newly employed. You could also consider the following:

  • Credit cards.

    A 0% purchase or money transfer credit card will allow you to spread the cost of your spending interest-free over a number of months. You’ll often be able to borrow around £3,000 to £4,000 (the better your credit score, the more you’ll be able to borrow), and you then make monthly payments to repay the amount borrowed.

    The downside is that should you fail to have cleared your balance before the 0% deal ends, interest will kick in (potentially at a higher rate than your average personal loan). You need a good credit score to qualify for the longest 0% offers on the market.

    Alternatively, you could apply for a credit card that offers a low rate of interest for the life of the debt. Should you be unable to pay off your balance in full each month, a low interest credit card could save you a lot of money. Low rate cards can also be easier to get accepted for than the top 0% purchase cards, so it’s worth checking the eligibility criteria of both options before applying.

  • Employee loans and salary advance services.

    Many companies are willing to offer advances on your salary payment, although asking for this in your first few months on the job could feel awkward.

    If you’re lucky enough, your employer may have signed up to a salary advance scheme. These allow you to access some of your salary early each month rather than having to wait until payday.

    You’ll usually need to download an app that will tell you how much of your salary you have already earned and how much you can borrow. You can request a salary advance via the app but note that you’ll have to pay a fee.

    Services include Wagestream, Salary Finance, Hastee and Neyber – you can read more about these in our guide to salary advance services.

    Of course, the downside is that your employer may not have signed up to such a scheme. They also shouldn’t be seen as a long term solution.

  • Short term loans and credit lines.

    If you’re unable to get a regular personal loan, you should be eligible for a payday or short-term loan. This is an option if you’re experiencing short term financial difficulty and need a fast cash injection to get through it, but should only be considered as a last resort.

    There are lots of short term loan options available, but you should be aware that this type of loan will typically charge a much higher rate of interest than a personal loan. Also, because the repayment terms are obviously much shorter, the amounts available to borrowers are significantly lower.

    Bottom line

    It is still possible to get accepted for a personal loan if you have recently started a new job. However, you’ll need to do a little extra checking before you submit an application to be sure that the lender you have in mind will consider you. While some lenders will automatically refuse those who have been employed for under 6 months, there are also plenty who will be willing to lend to this section of the market.

    Frequently asked questions

    We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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    2 Responses

      Default Gravatar
      AmandaDecember 7, 2018

      Dear sir/madam I am about to start my new job. I have a contract. But will be starting next week. We need a bit of help with bills at the moment. As we have not long moved to Devon and it has been a very expensive time if there is someone who can help us until we get back on our feet will be so grateful kind regards.

        JoshuaDecember 12, 2018Finder

        Hi Amanda,

        Thanks for getting in touch with finder. I hope all is well with you. :)

        I’m sorry to hear about your financial situation. While you can still apply for a loan even if you are just starting work, it will just be more of a challenge to get approved. You can obtain some quick tips on how you can get approved by reading the details found below the subheading, “How can I get approved for a loan as a new employee?”

        After reading our guide, you can then check our table above. It’s a list of lenders who can potentially help you. Use our table to compare your options and then click on the “Go to site” green button of your chosen lender to learn more.

        Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.

        I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

        Have a wonderful day!


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