When you need a little cash, you might apply for a personal loan, hoping you can pay it in a reasonable amount of time. There are several types of loans on the market, and no-income loans should be a consideration — especially because they make the application, underwriting and approval process easier for you.
Read further to learn how a no-income loan can improve your finances and push you that much closer to financial independence.
What Is a No-Income Loan?
A no-income loan can come to you in several forms. While you might be thinking of a personal loan, there are a few other loan types to consider:
- Lines of credit
- Credit-builder loans
- Buy-now, pay-later loans
- Cash advances
Remember, however, that the notion of a “loan” has been distorted by the American financial industry. When most Americans — maybe even you — think of a loan, they imagine outrageous closing costs, high interest rates, massive monthly payments, additional fees and poor customer service.
That’s not always the case. You can take out personal loans with no income reporting, provided you agree to the repayment terms. Lines of credit work the same way, but they function more like credit cards.
Credit-builder loans help you report good credit usage to the bureaus. Plus, you might try a buy-now, pay-later loan that simply breaks up larger purchases into smaller payments (generally every two weeks.)
Finally, cash advances are loans — of a sort. They once came exclusively from credit card issuers but now are common among digital financial platforms.
While each of these options is unique, a traditional personal loan that has no income requirements can net the most cash. Simply compare your situation to each financial product to determine what works best for you.
Who Needs a No-Income Loan?
Everyone! There’s nothing stopping you from taking out a no-income loan, especially when you have a financial need. You can use these loans to pay for:
- Large purchases
- Unexpected purchases
- Medical bills
- School expenses
These loans are not exclusive to one job, lifestyle or socioeconomic group. In fact, the beauty of these loans is that they are accessible to just about anyone.
If you’re a member of a particular digital financial platform, you can obtain one of these loans quite easily. In other cases, platforms welcome all borrowers as long as they agree to the repayment schedule.
How To Prepare for a No-Income Loan
There’s not much to do when there are no income requirements hovering over your loan, but you should consider how these loans impact your monthly budget. You need to pay them back, and you should add those payments to your obligations.
No-income loans are easy to apply for, manage and repay. If you’re working with a digital financial platform, that platform likely will withdraw the payments from your account in regular intervals.
MoneyLion (NYSE: ML) is a unique digital financial platform that helps “the 99% feel 100%” about their finances. This platform places all the financial tools you need right at your fingertips with:
- A powerful mobile app
- Financial calculators
- Mobile banking
- Buy-now, pay-later options
- Get paid early with RoarMoney
- Cash advances
- Credit-builder loans
- No hidden fees
- Cashback rewards
- Investment and crypto accounts
Try No-Income Loans To Improve Your Finances
You can try no-income loans today to help improve your finances. You should review your options before assuming that you must borrow elsewhere, use credit cards or apply for predatory loans from more expensive platforms.
Frequently Asked Questions
Can you get a loan if you have no income?
Yes! There are loans designed for those with no income, and there are some that simply require you to apply and agree to a payment plan without any proof of income. For example, the credit builder-loans from MoneyLion allow you to improve your credit and don’t require additional documentation.
What kind of loan can you get with no proof of income?
Personal loans are often provided with no proof of income, and there are even mortgages designed to ask for as little documentation as possible. Credit-builder loans, like those offered by MoneyLion, are quite helpful when you need a personal loan, and they do not require any documentation at all.