If your income has suddenly halted, or you have an unexpected expense and your money is simply running low, there are options to keep you moving forward — regardless of whether you have conventional income.
Most lenders require proof of income when applying for a loan, but there are no-income personal loans available to borrowers. Below are two examples of options available for individuals trying to get a personal loan without any income.
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CashUSA.com helps connect borrowers with the right lender for their personal situation. They have a quick and easy online form that uses industry-standard encryption and security measures to keep your personal information safe — and it is free of charge to apply.
According to their website, they accept all credit types, cash is electronically deposited in as early as one business day, and their loan terms are as follows:
- Loan amount: $500 to $10,000;
- Annual percentage rate (APR): 5.99% to 35.99%;
- Loan term: Three months to 72 months;
- Application requirements: At least 18 years of age, U.S. citizen/permanent resident, checking account, valid email address, and valid phone number.
BadCreditLoans.com refers consumers to reliable lenders and financial service providers to help match potential borrowers with a loan that meets their unique needs. You can get started by filling out a loan request at no cost.
They use advanced encryption technology so that all of your sensitive information remains safe. They offer loans to individuals with bad credit, and their loan terms are as follows:
- Loan amount: $500 to $5,000;
- APR: 5.99% to 35.99%;
- Loan term: Three months to 60 months;
- Application requirements: At least 18 years of age, proof of citizenship, checking account, valid email address, valid phone number.
How Do No-Income Personal Loans Work?
Even though the phrase “no-income personal loan” makes it sound like you don’t need any income, you need to prove to lenders that you have some method in place for paying back the loan plus interest.
No-income personal loans function similarly to traditional personal loans. Lenders will take a look at your current credit score as well as your credit history, and then verify any alternative sources of income.
If you have no primary source of income or alternative source of income, your likelihood of being approved for a loan — even a no-income loan — is slim. No-income loans generally require some form of collateral. This collateral can be valuable assets such as a vehicle, or alternative income like under-the-table work.
Lenders will offer their perceived value of your assets, combine this with your credit score/history, and determine if the risk is worth extending a loan offer. The loan offer will include the loan amount, the interest rate, the loan term, and any lender-specific information you may need.
Like all loans, if you do not pay your monthly bill, you’ll default on your loan and you are at risk for late fees and potentially losing your collateral.
Types of No-Income Loans
There are different types of no-income loan options available and it is important to know how they differ, who is eligible, and what type of income/asset collateral you may need. There are three primary types of no-income loans — these include:
- No-income, verified assets (NIVA) loans: NIVA loans require assets — that are verified by the lender — to be placed as collateral. A NIVA loan is traditionally the option available to most consumers incapable of verifying their income;
- No-income, no assets (NINA) loans: NINA loans are generally used for gig workers, self-employed workers, or other individuals who have a less-consistent verified income. They require no collateral and generally come with higher interest rates as a result;
- Stated income, verified assets (SIVA) loans: SIVA loans are good options for individuals with minimal income who have enough verified assets to cushion the risk for the lender.
Acceptable Income or Assets
There are a variety of different ways to show that you are able to make payments. Borrowers typically offer assets or non-traditional income as collateral. Some examples of acceptable non-traditional income that can be used for a no-income loan are:
- Retirement account;
- Unemployment benefits;
- Side gigs;
- Social Security benefits;
- Child support;
- Income from a partner;
- Royalty income;
- Investment dividends;
- Job offer/acceptance letter;
- VA benefits;
- Tip income.
Some examples of acceptable assets that can be used for a no-income loan include:
- Valuables that have been appraised (e.g. diamonds);
No-Income Personal Loan Scams
The phrase “no-income personal loan” creates the perfect breeding ground for scammers to take advantage of unknowing consumers. Individuals with minimal income may be more at risk for these types of scams because they could be in an uncomfortable financial situation, and because they may be having a hard time finding loans through conventional means.
Finding loans with minimal or no income is more difficult than getting traditional loans, so it is important for you to know how to detect and avoid personal loan scams. Below are situations that should raise some red flags:
- If the lender isn’t registered within your state;
- If the lender’s website is not secured;
- If the lender does not have an HQ or physical address;
- If the lender is pressuring you to make a decision ASAP;
- If the lender promises/guarantees approval;
- If the lender is not clear about terms or fees;
- If the lender is asking for an upfront out-of-pocket fee;
- If the lender is not worried about your credit score, or credit history;
- If the rates are too good to be true (e.g. low interest, no collateral needed, and whatever loan term you would like).
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