5 Simple Ways to Get a Loan If You Have Bad Credit and No Job

Apr 13, 2020 General

5 Simple Ways to Get a Loan If You Have Bad Credit and No Job

Having a bad credit score is always a disadvantage when it comes to borrowing money from a bank, however, most will agree to let you borrow the money if you either provide collateral or have a stable source of income that proves the fact that you will be able to make the monthly payments on time. In this situation, the main disadvantage will be that the bank will want more control over how you repay the money, and you may have to deal with slightly higher interest rates.

This having been said, what happens when you have bad credit and are also unemployed? Most banks will require you to have a job before they agree to lend you the money that you need. Luckily, there are several ways to circumvent this issue. Here is what you need to know:

There are 5 ways to get a loan if you are unemployed and have bad credit:

  • Have an alternative source of income

Regardless of where you borrow the money from, you will need to have a stable source of income. For some loans, you will be asked to have a job, but there are also some that you can access by having an alternative source of income.

These sources include a wide variety of income sources, such as unemployment, retirement, and child support or disability benefits. In extreme cases, you will also be able to include the income of a spouse or partner, as long as you can prove that you do have access to the funds.

  • Find a co-signer to help you

Most banks will agree to give you a loan, as long as you find someone to co-sign the agreement. This person will have to agree to vouch for you and repay the loan if you are unable to. Keep in mind that it is usually better to find a co-signer that has a great credit score and a high income. The creditors will look at these details when considering if you are eligible or not for the loan, however, they will also affect what interest rates you will have to pay.

  • Provide collateral for your loan

Even if you do not have a job, you will be able to get a secured account that is guaranteed with your property. Depending on the amount of money that you need to borrow, you can put up your car, your home, or other objects that have value to the bank that you work with. If you provide enough collateral, it will not matter to the creditors if you are unemployed or not.

As a working, keep in mind that if you are unable to repay the loan on time, the creditors will be entitled to take the property that you put up as collateral.

  • Get a cash advance

If you only need a small amount of money, it is possible to get a cash advance loan from an ATM. However, this type of loan does have certain disadvantages. First of all, there is a limit to how much money you can borrow. This makes this type of loan useful in certain situations where you need money to pay a utility bill or to get groceries.

Secondly, cash advances do not fall under a credit card’s grace period. This means that it will start accruing interest the instant you take out the money.

  • Use an online service to get a short-term loan

If you need under $1000, you should be able to get a short-term loan from a P2P lending website or an online commercial lending company. Both of these types of platforms can be used to take out small loans without having to worry about credit score. Some do not even require you to have a source of constant income, however, they will limit the amount of money that you can borrow.

The most important thing to remember when it comes to using online lending platforms is the fact that their evaluation process is streamlined when compared to the ones that banks have. This makes it possible to get a short-term loan in under 24 hours.

The downside is that the interest rates are typically higher than the ones offered by banks.


Each one of these 5 methods will help you get a loan regardless of how bad your credit score is. The fact that you are unemployed will not matter either. This having been said, keep in mind that getting a loan by putting up collateral, or having someone co-sign for it may not help you improve your credit score. Using online platforms to get a short-term loan may not even be registered in your permanent financial records due to the fact that most companies do not report these transactions to credit registers.

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