What Are My Options If I Just Started My Job But Need a Loan?

What Are My Options If I Just Started My Job But Need a Loan?

If you just started your new job but suddenly need a loan, it may be challenging for you to qualify. However, some options still exist. Several services may provide financial assistance even to borrowers with just a job offer letter on hand. Below are some basics to know, along with the products available to those who just started their new job.

Can You Get a Loan When You Just Started a Job?

The short answer is yes. It's quite possible to get a loan when you just started a job. There are multiple factors lenders assess when you apply for financial assistance, and your employment is just one of them.

Loan providers have no legal right to reject your application based solely on the type of earnings you receive. However, they still want to ensure you have a steady income that is enough to cover your loan payments.

Where Can I Get a Loan As a New Employee?


The process of finding a lender that is friendly to new employees is not that difficult. You can use the website BadCredify.com to compare personal loan options for those with a limited employment history and choose the lender that meets your needs. While the website provides detailed information along with lender reviews, interest rates, and loan terms, we will tell you about the available options in the outline.

Online Lenders

Online lenders are more flexible than traditional financial institutions. As they have more lenient eligibility requirements, many of them don't look at how long you've been at the same job. Some online lenders even lend money to recent graduates with a set start date and a job offer letter on hand.

Many online loan providers also offer borrowing options till your next paycheck that should be repaid in 2 to 4 weeks. They know there's a low risk of your dismissal within such a short timeframe. Thus, you're most likely to repay the funds on time, provided that you have no relevant violations in your credit history.

Community Development Financial Institutions (CDFIs)

Community development financial institutions are financial institutions that provide loans to underbanked communities and low-income borrowers. They are typically local banks that partner with underserved businesses and individuals and offer small personal loans at discounted rates. Before submitting an application for a CDFI loan, make sure you're eligible. Their programs might not be available until several months have passed since you started working for your current employer.

Your Employer

Many employers offer various perks to their workers. Some companies may give you a paycheck advance, meaning that you will get a portion of your future paycheck upfront. This cash advance doesn't need to be repaid. The sum you receive will be deducted from your next salary. Ask your boss whether you have such an option if you face an emergency.

Cash Advance Apps

Cash advance apps may work for situations when you need just a few hundred dollars to overcome financial emergencies till your next paycheck. They typically allow you to obtain the sum you've already earned but haven't yet received. The amounts are typically small and range from $50 to $250. Many apps offer interest-free loans or charge an optional subscription fee. 

What Are Requirements for Personal Loans for New Employees?

Actually, each lender may set its own requirements for personal loans for new employees. Most of them look at the following factors yet set their specific passing levels:

  • Age (no less than 18 in most states);

  • Income confirmation;

  • Debt-to-income ratio (35% to 43% is usually acceptable);

  • Credit score (at least 670 for most traditional personal loans);

  • Proof of citizenship and address.

You will also be asked to provide your Social Security number, routing number, and bank account details, along with supporting documentation.

How to Increase a Chance of Getting a Personal Loan as a New Employee?

Knowing what lenders prefer to see in your personal loan application will help you improve your chances of getting a loan. Here are a few tips for those who just started a new job:

  • Review a lender's terms thoroughly. Explore the information on the website or contact its customer support line and ask about the requirements;

  • Check your credit. Having a strong credit score can play into your hands if you lack a work history. Request a copy of your credit report from each credit bureau to make sure they contain accurate information;

  • Keep track of your credit utilization and debt-to-income ratio. Besides having a good credit score, you also need to demonstrate your responsible spending habits. A low DTI shows that you're not overburdened with debt, while low credit utilization indicates that you know how to handle debt properly.

  • Request a lower loan amount. Getting a small personal loan is much easier than a big one. Requesting a lower amount will increase your chances of approval;

  • Provide collateral. While an unsecured loan carries more risk to lenders, a secured one is much safer. Therefore, a loan provider may be more relaxed regarding your income and work history;

  • Inform your employer. As many lenders contact applicants' employers to make sure potential borrowers really work at the stated jobs, it will be better to inform your boss beforehand.


How Long Do I Need to Have a Job to Get a Loan?

Most lenders typically require a borrower to have at least a 6-month employment history in their current workplace. Some of them may set strict requirements and ask for at least a 2-year work history with a stable or rising income. However, online loan providers, CDFIs, or your employer programs, including employee loans, may have no minimum employment history requirement or set a more relaxed one.

Can I Get a Loan Without a Pay Stub?

Although pay stubs are the easiest way to verify your income, they are not always required to get a loan. However, proof of income is still needed. Online loan providers and cash advance apps are most likely to connect to your bank account and verify your funds directly. Some lenders may ask you to provide bank statements or other documents instead of your recent pay stubs.

Alternative Forms of Income to Get a Personal Loan

Employment is not the only way to get income, and lenders know that. Here are a few more forms of regular income that personal loan providers can accept:

  • Part-time jobs;

  • Side hustles;

  • Social Security benefits;

  • Alimony;

  • Child support;

  • Pension;

  • Retirement account balance;

  • Dividend payments;

  • Unemployment benefits;

  • Public assistance;

Some lenders may also offer co-signed loans. This way, your spouse's or family member's income can also be included in your application. Just keep in mind that they are most likely to share the responsibility of repaying the loan with you, especially if you default on your loan.

Editorial Team
This article was written by Editorial a Consultant at Industrial Psychology Consultants (Pvt) Ltd

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