Yes, you would typically need some sort of regular income to qualify for a short-term loan.
The eligibility requirements for a loan aren’t particularly tricky, you just need to show proof of identification, be over 18 years of age, have some sort of income and a bank account for the loan to be paid into.
The good news is that your income doesn’t necessarily need to be in the form of a pay-stub from a company. Unemployed borrowers can, for instance, include the following as income sources in their loan applications:
- Unemployment benefits.
- Veteran benefits.
- Trust benefits.
- Alimony benefits.
- Government annuity payments.
- Disability income.
- Pension funds.
- Social Security benefits.
Do I Need a Regular Income to get a Payday Loan?
As mentioned above, you do need some form of income to qualify for a payday loan with Dime Alley.
The good news is, however, that we only perform a soft credit search when you apply, and this income doesn’t need to come in the form of an employee pay-stub. You could qualify with other forms of income, such as unemployment benefits, social security, pension funds and more.
Payday lenders need to be able to see some form of income coming into your account because they need to be safe in the knowledge that you’ll be able to repay your loan.
A payday lender will confirm your income and checking account information and could deliver your cash in as quickly as 24 hours.
In exchange, the lender will ask for a signed check or permission to electronically withdraw money from your bank account. The loan is due immediately after your next payday, typically in two weeks, but sometimes in one month.
Can I Get a Loan Whilst Unemployed?
While traditional financial institutions, such as banks, would ordinarily reject loan applications from unemployed people, payday loan lenders open their doors to everyone.
You just need to demonstrate that you have a regular source of income, depending on your state’s regulations.
Other Loan Options for Unemployed People
A payday loan is not the only financial product that you could have access to whilst unemployed. There are plenty of other options for you to consider, such as:
Personal loans are a great alternative to payday loans to consider if you’re currently unemployed.
They are not only less risky, but also give you the chance to borrow more — and the funds, if approved, are usually released within hours after application.
And while payday loans come with short-term repayment terms — usually the next payday — personal loans are much more flexible. Lenders allow their borrowers to repay the loans in as long as years later.
Borrowing from Family and Friends
Another reasonable option is to simply borrow a soft loan from family or friends. Such loans are pretty straightforward, as the terms depend on the parties involved.
However, it is important to agree with your lenders, regardless of whether they’re someone you know, on how the loan will be repaid, the interest rates to be applied, and the loan repayment period, as this is the way to avoid any breakdown of relationships.