That depends both on the specifics of your situation and where you are applying for your payday loan. Some lenders will not ask you to verify anything regarding your financial condition when you apply. Others, however, will require you to submit proof of income.
You actually should be wary of lenders which do not ask you to verify income. These lenders are not taking the time to check whether you can afford a loan. While you need to be responsible as a borrower, they also must be responsible as lenders.
Now, some lenders will turn you down flat for a payday loan if they discover you are unemployed. But others may be willing to consider giving you a loan.
Generally speaking, if you do not have a steady stream of income from employment, you should try to avoid using payday loans. But there are some situations where a payday loan might make sense.
For example, let’s say you are waiting on your next unemployment check, but your car has broken down. You need to fix it to drive to a job interview. If you miss the meeting, it could mean you do not get the job.
If you would typically have been able to cover the auto repair cost using your unemployment check, taking out a loan could be the best solution. It would allow you to fix the car in time to make it to the interview. You could then pay off the loan after your unemployment check arrives.
If you can, try to provide proof of your unemployment benefits by submitting your most recent unemployment stub to the lender. It may be enough to persuade them that you can afford the loan.
Reviewed by: Casey Bond
Date Reviewed: Mar 18, 2019