Can You Get a Hardship Loan If You're Unemployed?

Key takeaways

Being unemployed isn’t an automatic disqualifier for a hardship loan; lenders focus on whether you can document your ability to repay.
Gig or freelance income, part-time pay, disability or SSDI payments, and ongoing alimony or child support are commonly accepted.
If you’re unemployed but have gig, freelance, or part-time income, lending platforms like Upstart may count it toward a loan application.

Depending on your circumstances, you may be able to get a hardship loan while unemployed. Lenders evaluate your ability to repay, but that doesn’t have to come from a paycheck. For example, disability benefits, gig work while unemployed, or substantial funds in retirement accounts could all be considered when assessing your ability to repay a hardship loan.

If you can document your ability to repay, a hardship loan could still be available to you, even if you are unemployed.

Can you get a hardship loan without a job?

Being unemployed isn’t an automatic disqualifier for a hardship loan, or from most other types of loans for that matter. For example, people who are retired and no longer have a paycheck often qualify for mortgages and auto loans. The reason? They can demonstrate their ability to make loan payments as agreed.

When you apply for a hardship loan or a standard personal loan, lenders typically evaluate the following:

Credit history and income: Lenders review your credit and ability to repay. A borrower with freelance income and great credit may appear less risky than a full-time employee with a poor payment history.
Lender flexibility: Acceptable income types vary by lender. While some are flexible, getting an unsecured loan with no income at all is difficult without a co-signer.

What income counts when you’re unemployed?

As mentioned in the previous section, different lenders have different standards regarding the types of income that can be used for loan qualification. Here are a few of the most common non-paycheck types, and what to expect when you apply for a loan:

Unemployment compensation: The short answer is that unemployment benefits are unlikely to qualify as income for loan qualification. The reason is that unemployment compensation is, by nature, designed to be a temporary source of income that you are unlikely to have for the loan’s entire repayment term.
Gig/freelance income: As long as you can document it through bank statements, 1099 forms, or your payment platform’s earnings history, income from gig work and freelancing is widely accepted.
Part-time employment: Typically accepted. The same documentation standards that apply to full-time employment apply here. Be prepared with pay stubs and/or W-2s.
Disability/SSDI payments: Usually accepted as a stable source of income. If you have an award letter or benefit statement, it should serve as sufficient documentation.
Alimony and child support: Generally accepted as income as long as the payments are ongoing in nature. You’ll likely need to show bank records confirming you actually receive the payments consistently.
Investment and rental income: It depends on the nature of the income, but the general rule is that the more consistent and documented it is, the more likely it is to be taken into consideration. For example, if you receive $1,000 per year from a 30-year Treasury bond investment, there’s a strong probability it counts.

The bottom line is that, aside from unemployment compensation, all of these are commonly acceptable sources of income for many lenders. If you have one or more types of income, it could certainly help you qualify for a hardship loan. If you don’t, even a modest amount of money from gig work can make a big difference in your chances of approval.

What lenders look at beyond income

Income isn’t the only factor that lenders look at when evaluating a loan application. There are four other key factors (not all of which apply to every borrower):

Your credit history: Lenders may look at your credit score, existing debts, payment history, and other credit-related factors. If your credit isn’t good, our guide on hardship loans with bad credit could be a great resource.
Co-signer: If you have the income and credit to justify the loan, you may not need a co-signer. But if you’re lacking in one or both, applying with a creditworthy co-signer can improve your chances of approval.
Existing relationships: If you currently have a bank account somewhere, that’s a good place to start. Many financial institutions offer small unsecured loans to their existing customers based on account history.
Lender and state availability: Policies vary by lender and geographic location. Just because one lender won’t approve a hardship loan for an unemployed borrower doesn’t mean that none of them will.

How to improve your approval odds when you are unemployed

While not every unemployed individual can qualify for a hardship loan, there are some steps you can take to give yourself the best possible chance.

Gather documentation for any income sources you do have. This could include bank statements, benefit award letters, 1099s, and more. The key is to show verifiable evidence that you can repay the loan.
Know where you stand credit-wise. You can get a free copy of your credit report at AnnualCreditReport.com. Check it for errors and dispute any inaccurate information as soon as possible.
Understand your debt-to-income ratio and base it on the income you can document now, not on what you earned when you had full-time employment. Add up your monthly debt obligations and divide by your gross monthly income. Most lenders want to see a debt-to-income ratio no higher than 40% to 50%.
Consider adding a co-signer. If you have someone in your life with a stable income who may be willing to co-sign a loan for you, it can be one of the most effective steps you can take.
Check your rates first. Most personal lenders will allow you to check your personalized loan offers and interest rates without a hard credit inquiry. This is worth doing before you fill out any formal loan applications, and it can help you assess whether you need a co-signer.

How Upstart evaluates applications for borrowers with no job

This section applies to borrowers who don’t have a full-time job, but who have some income from gig/freelancing work or part-time employment. Upstart considers these to be qualifying income sources, though how unemployment income is evaluated depends on lender underwriting policies, and it may not be considered ongoing, reliable income.

If you do have one of these forms of supplemental earned income, the Upstart platform uses AI-powered underwriting to consider gig and freelance income documented through bank statements, 1099s, or platform earnings. For example, not everyone with gig income has been doing it long enough to have received a 1099 yet, so this allows for other methods.

There’s no guarantee of approval, even with sufficient income. Upstart will review your full profile, including your credit history, existing debts, and other factors. If you have supplemental earned income, you can check whether you prequalify for a personal loan through Upstart without any impact on your credit score¹.

What to do if you don’t qualify right now

If you don’t get approved for a personal or hardship loan today, that doesn’t mean you never will. There are a few things you can do to potentially change your situation.

Consider bringing in a co-signer. If you were lacking in either income or credit, bringing in a co-signer with stable income and strong credit can open many doors.
Consider a secured loan. If you have collateral or an asset you can borrow against, lending standards can be much more relaxed. A secured loan on a vehicle you own is one example, or you may be able to borrow against money in a retirement account.
Use a credit union PAL. Federal credit unions offer small loans with capped interest rates and regulated terms, known as payday alternative loans, or PALs. You typically need to be a credit union member to apply.
Talk to your creditors: By contacting them before you fall behind, you may be eligible for hardship programs, such as payment deferrals and modified payment plans.

Of course, while it won’t help you immediately, working on improving your credit over the next few months can open the door to many more lending options. Our guide to improving your credit score can be a great place to start.

Frequently asked questions

Does unemployment count as income for a personal loan?

At most lenders, unemployment benefits do not qualify as income. Unemployment benefits are designed to be temporary, although some individual lenders may consider them as part of an overall financial picture.

What income sources do lenders accept when you’re unemployed?

Any other earned income is typically accepted, such as gig or freelance work or part-time employment. Stable government income sources, such as disability and SSDI, as well as documented alimony or child support, are also typically accepted.

Can you get a hardship loan with no income at all?

It can be very difficult to get an unsecured hardship loan with no income at all. However, secured loans (backed by collateral) or loans with a co-signer could be available to you.

What credit score do you need for a hardship loan when unemployed?

There’s no set minimum credit score, as the requirements vary by lender. However, the higher your credit score, the lower your interest rates will generally be, although many lenders consider multiple factors.

How fast can you get a hardship loan when unemployed?

Funding timelines vary by lender, but most online personal loans can be funded within a couple of business days of approval. To help expedite the timeline, be sure to have any income documentation in order before applying.

Can you get a hardship loan if you have gig or freelance income but no full-time job?

Yes, most online lenders accept gig and freelance income for loan qualification. It typically needs to be documented through bank statements, 1099s, or through the freelance platform’s earnings history.

What are the best alternatives if you can’t qualify for a hardship loan?

If you’re a member of a credit union, a PAL (payday alternative loan) could be a great alternative. Additionally, you could potentially get a secured loan, or apply for a personal loan with a co-signer.

Is a hardship loan the same as a 401(k) hardship withdrawal?

No. A hardship loan is money that you borrow from a lender, then pay back with interest. A 401(k) hardship withdrawal consists of taking money out of your own retirement account, and you may need to pay taxes and penalties.

Upstart Network, Inc. (NMLS #936133) is not a lender. All loans on its marketplace are made by regulated financial institutions.

All mortgage lending conducted by Upstart Mortgage, LLC dba Upstart Home Lending. (NMLS #2443873). Equal Housing Opportunity.

Checking your rate won’t affect your credit score: When you check your rate, we check your credit report. This initial (soft) inquiry will not affect your credit score. If you accept your rate and proceed with your application, we do another (hard) credit inquiry that will impact your credit score. If you take out a loan, repayment information may be reported to the credit bureaus.
Upstart’s model considers education: Neither Upstart nor its lending partners have a minimum educational attainment requirement in order to be eligible for a loan.
41% more approvals and 33% lower rates than a traditional model: As of publication in April 2026, and based on a comparison between the Upstart model and a hypothetical traditional model using Upstart data from Jan – Dec 2025. For more information on the methodology behind this study, please see Upstart’s Annual Access to Credit results here.
Unsecured Loans: While most loans through Upstart are unsecured, certain lenders may place a lien on other accounts you hold with the same institution. There may be an option to secure your personal loan through Upstart with your vehicle, which will require a lien to be placed on the vehicle. It is important to review your promissory note for these details before accepting your loan.
Loan amounts from $1,000 – $75,000: Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will qualify for the full amount. Minimum loan amounts vary by state: GA ($3,100), HI ($1,500), MA ($7,000). Maximum loan amounts may vary by state.
Closing and funding timeline: In Q2 2026, 15% of funded HELOCs achieved a closing timeline of 2 days or less and a funding timeline of 7 days or less. This timeline assumes consumers close with our remote online notary, provide supporting documentation promptly, and ensure the information provided is accurate and consistent with our verification process. Delays, discrepancies, and other unforeseen factors may impact the closing timeline. MBA’s 2025 Home Lending Study reports an average industry closing time of 37 days.
APRs from 6.3% – 35.99%, with 3 or 5 year terms: The full range of available rates varies by state. The lowest rates are only available to the most qualified applicants. A representative example of payment terms for an unsecured Personal Loan is as follows: a borrower receives a loan of $10,000 for a term of 60 months, with an interest rate of 19.08% and a 8.15% origination fee of $815, for an APR of 23.37%. In this example, the borrower will receive $9185 and will make 60 monthly payments of $261. APR is calculated based on 5-year rates offered in June 2026. There is no downpayment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be approved.
Instant deposits: To receive instant funding, your bank account must support instant transfers. If your account does not support instant transfers, funds will be available to you depending on your bank’s transaction processing time and policies.
Always On Commitment: We are committed to maintaining your credit limit as long as you continue to meet program eligibility and account requirements. To ensure the safety and security of all our members, we reserve the right to adjust or close lines in specific circumstances, including account default or late payments, suspected fraud, violation of our terms of service (including abusive behavior), or when necessitated by legal or regulatory requirements.
Cash Line draws: You may request a draw at any time. Only one draw may be outstanding at a time; after it is fully repaid, you may request another.
HELOC APRs as low as 6.52%: Terms shown here are subject to change without notice. APRs for initial advances range from 6.52% to 18.00% based on rates offered as of June 2026. The lowest rate is only available to consumers willing to become a member of a credit union and to those who meet a minimum FICO score of 780, CLTV under 70%, and DTI under 45%. Your actual rate will depend on many factors such as your credit history, combined loan-to-value ratio (CLTV), line amount, loan term, lien position, and property state. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
No annual fee, prepayment penalty, or fees to redraw: Terms shown here are subject to change without notice. Origination fee to open an account is between 0% and 4.99% of the approved credit limit. The Annual Percentage Rate (“APR”) is variable and based on the Prime Rate as published in the Wall Street Journal “Money Rates” table plus or minus a margin. Your APR will never be less than 3.99% or greater than 18.00%. Property insurance is required.
3,000+ Variables: As of 6/30/2026. “Variables,” often also referred to as “features,” refers to raw variables and combined variables considered in our AI models. A “raw” variable is a non-combined, conceptually distinct unit of data, such as “applicant-reported savings.” A “combined” variable is data that has been transformed, combined, or otherwise engineered from a raw variable or set of raw variables, such as “applicant-reported savings” divided by “loan amount.”
Fully automated loans: In Q2 2026. Percentage of Loans Fully Automated, which is defined as the total number of loans in a given period originated end-to-end (from initial rate request to final funding for personal loans and small dollar loans, and from initial rate request to signing of the loan agreement for auto loans) with no human involvement required by the Company divided by the Transaction Volume, Number of Loans in the same period.
One business day: If you accept your loan by 5pm ET (not including weekends or holidays), your funds will be sent on the next business day. When the funds will be available to you will depend on your bank’s transaction processing time and policies.
Best rates guarantee, $200 gift card offer terms: If you are approved by Upstart Mortgage but receive a lower rate somewhere else, we will give you $200. Discounted, introductory, temporary, or promotional rates are not eligible. Rates claims are based on median rates within substantially all FICO/CLTV bands across multiple November 2024-March 2026 HELOC securitizations. See full Terms and Conditions.

Can You Get a Hardship Loan If You’re Unemployed?