Can I Get A Loan If I Just Got A New Job?

In October 2021 alone, the US added 531,000 jobs to the economy. If you have recently secured a new job, you could be eligible for a loan. While there are many factors that qualify you for a loan, lenders are particularly keen on you being employed. This is because it guarantees you an income, and therefore makes you likely to be able to repay your debt. Whatever your circumstances, there will be a way to secure funds – it’s all about figuring out the best means of doing so.

Some lenders may have slightly stricter requirements about new employment or if you are looking for a loan as someone who is self-employed. For instance, some lenders will require you to have been employed for a minimum of 6 months to a year. This is to reassure that your job is legitimate, and that you haven’t signed a contract so as to become eligible for a loan. Notwithstanding that, this criterion is not ubiquitous, and you can shop around to find a lender who suits your circumstances.

Some lenders will be more flexible for new jobs and self-employed and won’t even require you to have assumed your role yet. Some will be willing to become your lending partner based on your offer letter, which outlines your role and your future income. Indeed, if your offer letter demonstrates that you will be entitled to a pay rise in the near future, you could be eligible for an even larger loan. 

For those of us who engage with temporary employment, namely through assuming seasonal roles, it may be slightly more challenging to secure a loan. 

Don’t worry if this applies to you; with 943,000 US based companies seeking out seasonal work this year, this is a common situation to be in. This is because an income not guaranteed makes repayments less likely, making lenders less keen to work with you. If this is the case, you could still be eligible for some loans, but it may be better to consider alternative forms of loan. 

If your employment status is truly becoming a barrier to securing funds that you need, it may be worth seeking out a guarantor loan. This is when another individual, typically a friend or family member, signs a contract and pledges to cover your repayments should you be unable to. A guarantor loan therefore hinges on somebody else’s employment status rather than yours.

Alternatively, you could ask your friends and family to help you out if this is possible. If you are in desperate need of funds but don’t want to go through the rigmarole of applying through a high street lender, you could ask someone you personally trust to help you out. 

This avoids the high interest rates of high street loans which sits at about 300%, ranging up to around 600%. This could also be more flexible, and therefore more suited to you. However, if you opt for this option, you should be sure that you have a repayment plan that you are confident you can stick to. This avoids any resentment building up and tarring relationships for the sake of money.