How to Get Loan with Bad Credit and No Job- Complete Guide

When you are unemployed, getting a loan from a registered financial institution is so hard, and having a bad credit record makes it even worse. The financial institution is looking at not just your ability to pay the principal loan and the accrued interest, they look at your credit records to ascertain the chances of you defaulting.

With a bad history, creditors will not be willing to lend your money to cover your financial needs, unless you prove beyond a reasonable doubt that you can repay the loan and its interests. Employment in most cases can help you access loans since you have a stable source of income, unemployment loans with no job verification are hard to get but possible, and you have to go an extra mile to convince lenders to fund your financial needs.

Getting a bank loan, bad credit combined with an unverified job isn’t just a thorny factor: it’s an obstacle that needs lots of knowledge to maneuver through.  Are you jobless with a bad credit score and in need of a loan? Here is a complete guide on how to get loan with bad credit and no job.

How to Get Loan with Bad Credit and No Job

Get Loan with Bad Credit and No Job

1. Consider Using Assets as Collateral for Secured Loans

Being unemployed and having bad debts does not mean you don’t own valuable assets such as motors and homes. A financial institution can offer you bad credit no job loans and have the assets as collateral in case you default on your loans. Although it is not advisable to use them as security to obtain loans, some financial needs might force you to overlook this. It is essential to know that, using your assets to secure loans puts your belongings at risk if you default. Always ensure that you are in a position to pay back the loan with its interests. What securities does bank accept?

Auto Title Loan

For an auto title loan, your car will act as a collateral to secure a loan. They are usually short-term loans lasting for a period of two to four weeks. Unfortunately, a lender will always give you a loan way below the value of your car. These loans might have outrageous interest rates, and they rarely have proper guidelines to protect consumers. If you are unable to repay, they can extend the given period with additional interest making them one of the most expensive loans.

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House Equity Loan

Using your house to secure a loan is one of the fastest ways to fix your financial needs but comes with its challenges in case you are unable to repay. A home equity allows you to obtain a better amount with long period to pay back. If you need unemployment loans, using your house to get a loan will not only offer you low-interest loan but also guarantees immediate approvals. Over-borrowing and misuse of the borrowed funds with house loans can lead to losing your home, putting you in a worse scenario. Interest rates are known to fluctuate depending on a lender, always go for a fixed interest rate to avoid paying more.


involves depositing your valuable item with a pawnbroker to obtain small quick loans. Expensive belongings such as watches and necklaces can bail you out when you are in need of quick loans. Pawnbrokers will only look at your collateral and not your credit score. Pawnshops are ideal when you require small loans to fund some emergencies. It is, however, recommendable to compare their terms and interest to avoid being ripped off.

2. Consider Online Based Lenders

Being in a bad credit no job situation can affect your ability to be considered for loans in different financial institutions. Online lenders such as Cashloans usually give the same consideration on loan application regardless of being employed or having a bad credit score. If you have a good business or a pressing need, online lenders will be of great help. All you have to do is submit an online application, and you can quickly get same day loans with no credit history checks and job verification. Their interest rates are usually competitive, and there are several companies to choose from. You can as well use online comparing tools to help you decide the right lender for you.

Traditional banks are placed on high scrutiny with sophisticated regulations; hence, they have to employ stringent loaning standard that might close you out if you have a bad credit score or unemployed. Online lenders are less strict and very flexible. They are more concern with your capacity to pay back the borrowed amount and not your credit history.

To avoid damaging your already punctured credit score, always borrow what you can easily manage to pay back comfortably. Online lending has its challenges, since you won’t be in a physical office where you engage one on one with bank officials, frauds are rampant, and you should be fully knowledgeable of the requirements. Here is how to know when the lender is not genuine:

  • Guarantees you loans without checking anything
  • Ask for registration or upfront fees.
  • Unnecessary contacts with a pushy request for sensitive information.
  • Weird company name.

Be alert and take your time to check out on the company reviews and don’t fall for unauthentic positive reviews. Being upbeat from the word go will help you avert impending risks that come with sharing personal details with strangers.

3. Consider P2P Lending

Getting bad credit no job loans can be challenging but very possible when you employ peer to peer lending.  Also referred to as crowdleoding, P2P lending involves lending funds to people or business by online services that link lenders with borrowers who have matching needs. Being online based, peer to peer lending has fewer operation expenditures and more affordable loans compared to banks. Cutting of operation expenditures gives better returns to lenders hence lower interest rates to the borrowers.

However, they also check your credit score, crowdleoding considers your purpose of the loan and can be willing to overlook the shortcoming of having a bad credit score with no job. P2P commonly offers unsecured loans after reviewing your purpose and credit score; in rare cases, they provide more funds to businesses that are willing to deposit collateral such as expensive assets with them. They also offer student loans, payday loans, as well as real estate loans. The loaning mediators make their money by applying a one-time payment on the provided funds and evaluating checking fee to investors.

4. You Can Borrow from Family and Friends

Anyone can have an adverse financial issue even when employed or with a good credit score. If you have supportive relatives or friends, you are lucky. Friends and relatives can save you a lot of trouble when you are trying to get a loan with bad credit and no job. These are people who are more sympathetic and supportive to you; they understand your struggles when you share with them what you are going through. After all, what are friends and family for, to help each other through hard times, right?

Borrowing for family and friends has its advantages and disadvantages. When a friend or relative loans you, you might negotiate a better period for you to pay back with minimal or no interest. If you are borrowing the money for the right course, you will most probably be able to pay in time without struggle. Failure to repay the funds can lead to rankles or breaking friendship. Some friends and relatives could also not be comfortable lending you.

5. Consider Having a co-signer.

A co-signer is a person that agrees to shoulder your loan responsibility if you default. A co-signer should be able to cover the requirement to get a loan that the borrower is unable to meet. If you can convince a friend or a relative to be your guarantor when applying for a loan and you have no job or bad credit score, lenders will use their credit score to offer you a loan.

Worst case scenario, if you fall behind on repayment, you will not only be damaging you already dented credit score, but also the creditability of your co-signer. If you are borrowing the funds for business, do an extensive research about it to avoid bad debts. Have in place the necessary plans on how to repay the principal loan with all the accrued interests.

If you are unemployed and you have a bad credit score, lenders can be unwilling to offer you loans when in a bad financial situation. Lenders usually have to ascertain your repayment abilities and chances of defaulting. Always try to maintain healthy financial records to avoid being denied loans. In case you already have a messed up a credit score, it is possible to secure a personal or business loan through the means mentioned above.


Bad credit no job loans can be secured from online lenders who base their terms more on the ability to pay back and not financial records. Borrowing from supportive and willing friends and relative is also a way of obtaining unemployment loans.  Having someone with a good credit score ready to be your co-signer is also another way of getting a loan with bad credit and no job. It is not advisable to use your assets such as your house and car as collateral to secure a loan, but if you are out of options, assets can quickly help you get a loan with bad credit and no job.