I Am Unemployed. Can I Get a Payday Loan?

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I need to borrow some money. I really need it. But every application I tried requires that I provide employment details. Unfortunately, I am currently unemployed. Am I eligible for a loan? I mean, can’t unemployed persons benefit from funds when they need it? Borrowing from friends and family is no longer an option…
– Ron

The Answer

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.

Beware Irresponsible Lenders

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.

Somtimes It Make Sense

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.

Use it for Proactive Actions

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

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The answer on this page is provided in collaboration with some of our trusted lenders who are proud members of the Online Lender’s Alliance. The purpose of the provided answers is to inform the consumers about the specifics of online lending. It should not be treated as legal advice or regulatory guidance. The information is updated periodically and may include links or references to third-party resources or content. SDL365 does not endorse any third-party nor does it guarantee the accuracy of the third-party information. We encourage you to consult other resources that might serve your needs and take into account your particular situation.

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