How to Get Personal Loans With No Income Verification

Read our Advertiser Disclosure.
Contributor, Benzinga
June 26, 2024

You may be able to get a personal loan with no income verification by providing collateral or having excellent credit.

Dollar,Money.,Bankrupt,Man,Counting,Money,Cash.,Business,Crisis,Finance

Based on the most recent industry data, an estimated 23.5 million Americans collectively hold $245 billion in personal loan debt, as of the first quarter of 2024. Seeking a personal loan may be necessary for a variety of reasons. But what if you cannot provide a proof of income? Probably because you are starting a new self-employment venture, have recently been laid off from your job, or are experiencing major changes within your family or household. Can you get a personal loan without proof of income? While it may be more challenging, it is not impossible.

Many outstanding lenders offer bad credit loans with no income verification. However, you should know that these loans often have unfavorable terms and greater risks for you. Plus, they’ll cost you far more over the course of the loan. Learn more about your financing options when you can’t get a loan with income verification.

What Are Personal Loans With No Income Verification?

Personal loans with no income verification are a type of loan that does not require you to provide proof of your income in order to qualify. These loans are often seen as a convenient option for individuals who may not have a steady income or who may have difficulty providing traditional income verification documents.

Most personal loan types are unsecured, where the lender doesn’t require collateral to agree to give you the loan. The lender uses your income and credit score to provide the loan. But that means going through a credit check. When you can’t qualify for an unsecured personal loan, you might need to look for alternatives.

Income verification is the process where the lender reviews your proof of income, including tax documents or pay stubs, and requests copies of bank statements to ensure you will be able to pay back the loan.

Types of Personal Loans With No Income Verification

Loans with no proof of income often include higher interest rates so the lender can protect its interests in the process given that you are a more risky borrower. Here are a few options to consider when looking for personal loans that do not require income verification.

Personal Loans for Excellent Credit

If you have excellent credit, you may have access to a variety of financial products, including personal loans that do not require income verification. Some lenders offer loans based solely on credit without looking at your income. To get one of these loans you’ll need a credit score of 740 or above. Lenders might take your credit score as a sign that you are not a risky borrower. But you’ll have to shop around to find these.

Secured Loans

Another way to get a loan without supplying proof of income is to put down collateral for the loan. A car title is the most common form of collateral, though some will accept a property deed. Secured loans are risky because if you can’t pay back the full amount, you lose the collateral you put forth to get the loan. You can also only borrow as much as the collateral is worth. So if you’ve been driving around in a beater, you might only be able to get a loan for a few thousand dollars.

Pawn Shop Loans

Another type of secured loan is a pawnshop loan. These loans can provide emergency cash immediately using your personal items as collateral. However, you’ll need to be comfortable parting with your personal item because the pawn shop will hold the item until you pay off the loan. And if you don’t pay the loan on time, the pawn shop will sell the collateral to recoup expenses. Review rules and regulations for pawn shop loans in your state to see whether this might be an option for you. Most loans are short-term, such as 30 days. They’ll also have set interest that they can charge you per month based on your state laws.

How to Get a Personal Loan with No Income Verification

Before getting started with no income verification personal loans, review the steps to getting one to ensure you’re ready to complete the process and know what you’re committing to. 

  1. Review income sources: Before you sign on the dotted line for a loan without income verification, evaluate whether you have an income source that might qualify you, such as Social Security benefits, alimony, side gigs or workers’ comp. Some lenders will accept these nontraditional sources of income to provide you with a traditional loan.
  2. Request a credit report: Your credit report is a good way to understand your credit score. The higher your credit score, the easier it will be to obtain a loan from a more reputable lender. Go to AnnualCreditReport.com to request your report from one of the three credit bureaus.
  3. Compare loans: Now that you know where you stand financially and in relation to your creditworthiness, you can compare your personal loan options. Review all available options, including unsecured loans, secured loans and pawn shop loans before deciding what’s best for you.
  4. Pull together the required documents: Regardless of the loan you select, you’ll need documentation, such as an ID and proof of collateral ownership. Make sure you have those ready to make the process move swiftly.
  5. Complete the loan application: Many lenders now allow you to apply online, making the process simple and quick. Others require you to be in person to complete the application process.

Best Loans with No Income Verification

Once you’re ready to compare your loan options, review these leading lenders who won’t require income verification.

  • Upgrade Personal Loans
    Best For:
    Home Improvement Loans
    VIEW PROS & CONS:
  • SoFi Personal Loans
    Best For:
    No origination fees
    VIEW PROS & CONS:
    securely through SoFi Personal Loans's website

    Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors. Loan amounts range from $5,000– $100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.

    Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.

    Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.

  • Happy Money
    Best For:
    Credit Card Debt Consolidation
    VIEW PROS & CONS:

Pros and Cons of No Income Verification Personal Loans

While most borrowers are eligible for personal loans where the lender does not request income verification, it’s wise to get started knowing the pros and cons of accepting such a loan.

Pros

  • Fast cash: When you encounter unexpected expenses or are down on your luck, you might need money fast to help make ends meet. Personal loans without income verification can do that because they move through the process quickly without underwriting holdups. Many lenders can offer same-day cash once you apply and are approved.
  • Loans with limited or no credit: You can secure a personal loan without a strong credit history or good credit score using these loan types. That means you can get money even if your credit score is poor or you’re young and don’t have an established credit profile yet.
  • Borrow funds with less traditional income sources: When your income comes mostly from your investments or other nontraditional income sources, a loan without income verification can be a good option.

Cons

  • Rates are high: You’ll pay a great deal in fees and interest throughout the loan term.
  • Short terms: The lender will require you to repay the loan within a few months. Many pawn shop loans are only 30 days. Car title or secured loans are also often only good for a month.
  • Often leads to debt cycles: Taking out a loan without the income to pay it off can lead to falling deeper and deeper into debt. You start maxing out credit cards to meet daily expenses or take out an additional loan to make payments on an existing loan. 

Personal Loans With No Income vs. No Income Verification

The biggest difference between personal loans with no income versus no income verification is that you’re more likely to have the funds to repay the loan when you’re simply seeking no income verification. When you have no income, you won’t have the means to repay the loan at the time of requesting it. People seeking no income verification loans might be doing so because other lenders have denied them a loan because their income is complex, such as in the case of self-employment or contractors. 

Alternatives to Personal Loans With No Income Verification

Before you take a personal loan, consider these alternative financing options to help you make ends meet or get an influx of cash quickly.

  • Home equity loan or home equity line of credit (HELOC): If you own a home, you likely have built equity in it over the years. That means you’ve paid off part of your mortgage or your home has appreciated above the price you paid for it. You can get a loan for the value of your home that exceeds your mortgage. These loans generally have better terms because the lender knows you have an asset that it could claim if you don’t repay the loan.
  • Withdrawal from a retirement account: You can take a hardship withdrawal from your retirement accounts to help make ends meet. Just know that the withdrawal will be subject to income tax and an additional 10% penalty tax in most cases.
  • Credit cards: While credit card debt is serious and something you don’t want to take on if you don’t have to, it can offer a stop-gap to help you get by when you need to. And while interest rates are high on credit cards, carrying a small balance won’t cause too much harm so long as you pay it off quickly once you rebound financially.
  • Borrowing from friends or family: Borrowing funds from friends and family can be a better option than a traditional loan for small amounts of cash, as they often offer funds without interest and with lower interest rates if charged. This can help avoid getting into a debt cycle and can be helpful during challenging circumstances.

Get Cash During Hard Times

Personal loans can help bridge the gap between jobs or help pay off other commitments when you fall on hard times. So long as you approach these loans conservatively and with a plan for paying them back, they can be a good financial tool for helping you get by. Just be aware of predatory loans and avoid falling into a cycle of debt by taking on more than you can pay off.

Rebekah Brately

About Rebekah Brately

Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.