by Ben Sweiry ·
Modified on 20 October, 2023
Yes, you can get a loan if you have recently started a job, but it may be more of a challenge to get your application accepted.
Many lenders consider new employees risky, especially if you’ve only been working a month or two. While you still have options, be prepared to pay a little bit extra in interest on your loan.
Key Points:
- It is possible to get a loan if you are in a new job, but it is easier if you have been with your employer for a while, usually over six months.
- If you haven’t yet started your new position, providing a lender with your job offer may make it easier to secure a loan.
- Applying for a smaller loan amount may make your application more likely. The average loan amount in 2021 was $375, so applying for substantially more than may lower your chance of success.
- If you’re struggling to secure a loan because of your employment status, you could consider alternative loans, such as a guarantor loan, or asking friends or family for support.
Can I Get a Loan If I Just Started Working?
Although it is technically possible to get a payday loan with a new job, it is certainly more difficult than if you are in long-term employment. Ultimately, the length of time you should’ve been working for to qualify for a loan depends on the lender’s employment requirements.
In a handful of cases, you might be required to work for your current employer for a certain amount of time — usually six months to a year.
Other lenders like might require you to have a job for at least a year, regardless of where you worked. Even if a lender doesn’t advertise employment requirements, it typically still considers it when evaluating your application.
Generally, you need to be able to provide three recent pay stubs as proof of income if your lender requires you to have a job.
Can I Get a Personal Loan with a Job Offer Letter?
It might be possible to get a loan using your job offer letter as proof of employment, and this will likely require you to have a start date in the next 90 days.
However, this will most likely be as long as you have another source of income.
This could help you get approved for a larger loan amount, since you have proof that your salary will increase. However, it likely won’t help you get a loan if you currently don’t have any regular income.
Can I Get a Loan If I’m Working Part-time?
If you need to borrow money today, it is possible to get a loan if you’re working a temporary job. However, some lenders might not be willing to work with you unless you have another job lined up or another source of income.
It can help if you’ve consistently worked in the same field for at least a few years. This shows that you can consistently bring in income, even if you don’t have a traditional full-time job.
How to Get a Personal Loan with a New Job
Apply For a Lower Amount
Beyond saving you money, only requesting the minimum amount you need to borrow will help increase your chances of approval. The average borrower in 2021 took out a loan of $375, so applying for a loan of around that is more likely to be approved than if you apply for a larger sum.
Lenders tend to be less hesitant to lend if you can prove you’ll be able to return on their investment.
Wait To Apply
Consider if you really need a personal loan at this moment. If you can wait a few months, your chances of being approved increase.
By waiting until your probationary period is up — usually three to six months — you show the lender that you have a steady source of income.
Meet The Other Minimum Requirements
Lenders have a range of minimum requirements you need to meet that extend beyond employment. Before you fill out an application, make sure you meet these.
If you aren’t sure what’s on your credit file or what your credit score is, check before you apply. This will also give you the chance to correct any mistakes that may be listed on your credit report.
Provide Supporting Documentation
If you have any assets or savings, you should provide that information with your application. This may increase the lender’s trust that you can repay your loan.
If you don’t qualify for that unsecured option, a lender may be willing to discuss using these as security.
Overall, it is possible to get accepted for a payday loan if you have just started a new job, but lenders will be more likely to accept your application if you have been employed for a longer period of time.
If you can wait to apply, then your chances of being accepted will definitely go up!