There are so many reasons why you might need to take out a loan at some point in your life. Maybe your car broke down right before you were supposed to get paid or you’re just a little short on covering your entire rent amount this month. Whatever your reasons for a shortfall of money, loans are available to help bail you out.
But what if you don’t have a steady job that provides you with regular pay? What if you only do some side jobs right now that only pay you in cash and therefore leave you with no pay stubs to verify your income? Or what if you’re simply unemployed at the moment? Is it still possible to get a loan when your employment situation is uncommon?
Can You Get A Loan Without Employment Verification?
Yes, you can. There are actually loans without employment verification available that allow borrowers with no documentation to support a steady job to get access to the cash they need to cover a pressing expense. While taking out an unsecured income loan with little to no income might not necessarily be the ideal thing to do, but it may be the only way out if you find yourself needing the money right away.
Are you on employment insurance benefits? Read this.
What Is A Loan Without Employment Verification?
Simply put, these types of loans do not require that you submit any sort of documentation or proof of employment. There’s no need to supply pay stubs or employment letters from your boss in order to apply.
Borrowers who seek out loan options like these are obviously those who don’t have a standard 9-5 job or who are currently unemployed. There are several online lending companies that offer these types of loans to borrowers who are in an uncommon employment situation.
Types Of Loans You Can Get Without A Job
As mentioned, many of those who want a loan without employment verification are those who are unemployed or those who don’t have a regular income. Some may be living on government benefits such as the child tax benefit, maternity benefits, employment insurance, and other non-traditional forms of income like RRSP withdrawals. Luckily, there are many lenders who don’t require you to have a job, so long as you have some sort of income coming in.
However, those with non-traditional income and bad credit are likely to been seen as high-risk borrowers. This, in turn, will lead to high-interest loans with short repayment periods. As such, you may get the loan you want, however, you’ll be paying a much higher cost for it.
- Payday Loans Without Employment Verification – Payday loans are small loans with very short terms and high-interest rates. You can usually borrow up to $1,000 to $1,500 with Payday lenders. These loans are repaid within 1 to 4 weeks and have an APR that ranges between 300% to 600%.
- Personal (Installment) Loans Without Employment Verification – Personal loans are usually a better option than payday loans as they come with lower rates, higher loan amounts and longer terms.
- Guarantor Loans With Employment Verification – Another way you could qualify for a loan without employment verification is by getting a guarantor loan. A guarantor loan is basically a loan that you add a cosigner to. A cosigner is someone who agrees to take responsibility for your loan in the event that you default on it.
Step 1. Check Your Finances
When applying for any loan, it’s recommended that you review your finances and credit score to see how creditworthy you are as a borrower. If your credit score is really low and your debt is really high, it may be worth improving your situation before applying for a loan. This will not only increase your chances of approval but can also lead to lower rates of interest.
Step 2. Compare Lenders
To find the best lender for you, it’s essential that you do your research and find lenders whose minimum requirements you meet. You could also use a loan comparison platform to help you find a lender who would be willing to extend credit to you. These services provide multiple loan quotes from different lenders with a single application. You can then review your offers and choose one that best meets your needs.
Step 3. Submit Your Application
The application process for these types of loans is rather quick and simple. Once you know who you want to apply with, all you really need is to supply your personal information, contact information, proof that you’re the age of majority, and the amount of money that you’re looking to borrow. There’s no collateral to put down since these are unsecured loans. While you won’t need to prove employment, you will still need to prove to your lender that you can afford to repay the loan. Typically, this is done by providing proof of income (ex: EI, CCB, CPP, etc) or through a credit check. If approved, you will be given a due date for loan repayment and will be charged a specific interest rate that will have to be paid back along with your original principal amount.
Cost Of Borrowing A Loan Without Employment Verification
If you are currently unemployed and are looking to apply for a loan that does not require employment verification, you should be aware of the risks of doing so.
- High-interest rates: Due to the nature of the loan, you as the borrower pose more risks than normal. As such, the lender will have higher than usual rates to compensate for the added risk they are taking on by lending to you.
- Smaller loans: Since the lender cannot verify your employment, they will feel less secure in providing you with big loans.
- Shorter-terms: Lenders will often have shorter repayment periods due to the added risks involved with no employment verification. These loans will often have a repayment period of a few months, making payments less affordable.
- High fees: The risker the loan, the more expensive the loan will be.
Can I get a loan if I’m living on social disability benefits?
Can I get a loan without employment verification with bad credit?
Can I get a personal loan while unemployed?
Can I get a personal loan while on Employment Insurance (EI)?
Can I get a loan with a credit check or employment verification?
It’s definitely possible to apply and get approved for a loan even if you do not have any proof of employment or income. Sometimes desperate situations call for desperate measures, and taking out a short-term loan may be your best bet.
That being said, it’s important that you completely understand the responsibility that you will be taking on since you will be obligated to repay your loan at some point in the future. If you are unable to make good on your loan, you could be putting yourself in an even more vulnerable situation. Make sure you assess your financials and the loan products out there before you sign on the dotted line.
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