Getting a personal loan without income can be challenging. You need to have proof of income to show that you are in a position to repay the loan. There are several strategies you can use to increase your chances of having your loan application approved even if you don’t have an income. The following are some of the tips to get a personal loan without income.
Requirements to Get a Personal Loan without Income
You may need to meet the following requirements to get a personal loan without income:
1. Provide KYC documents like passport or ID
2. Provide bank account statements for the previous 3 months
3. Meet the minimum credit score requirement
The requirements vary from one lender to the other. Make sure to check with your specific lender before borrowing a personal loan.
Tips for Getting a Personal Loan without Income
If you don’t have an income, it may be challenging to have your personal loan application approved. However, you can take the following measures to have the loan approved.
Credit History
To have a personal loan application approved without income, you need to have a good credit history. You need to have a credit history of 750 and above. If you have poor credit scores, then you would need to first improve your credit ratings. You can do this by repaying your other personal loans and credit card loans on time.
Become Credit Worthy
One of the things lenders check before approving a loan application is one’s creditworthiness. The lender needs to have solid ground to trust that you can repay the loan. Establish good relations with your lenders and make sure to pay all your loans on time. If you have several loans, you can consider debt consolidation to make it easy to repay them.
Provide Alternative to Income Proof
To get a personal loan without income, you would need to provide an alternative to income. Also, if you are self-employed, it would be difficult to provide proof of income. If you have an asset like a car that you can provide as collateral, you can increase your chances of getting a personal loan without income.
Apply for a Loan with a Co-Applicant
You can increase your chances of having your loan application without income approved. Your co-applicant ought to have good credit scores so that you can get a loan with better terms. However, if you default on loan repayment, your co-applicant would have to repay it for you. Besides, it would also affect their credit score.
Look for a Lender with Simple Requirements
Loan application requirements vary from one lender to the other. When applying for a loan, you need to find a lender with simple requirements you can meet especially when you have no income. You can shop around and compare loan requirements from different lenders.
Get a Guarantor
You may need to consider getting a guarantor if you want to have your personal loan without an income application approved. A guarantor is a person who guarantees to repay your loan in case you are not in a position to. It can be your relative or friend. However, the guarantor must meet the minimum credit score and also be credit-worthy.
Summary of How to Get Personal Loan without Income
The above are some tips you can use to have your loan application approved if you don’t have an income. Financial institutions would need to know your creditworthiness and this would be shown by your credit score. If you have poor credit scores, then you would need first to improve them. Some of the ways to do it are to first repay your existing loans like credit cards.
