How to Get a Personal Loan Without a Job

By Jade Balle

  • Overview

    When you don't have a job, there aren't many things you can get. But if you play your cards right, you might be able to get a personal loan to keep you afloat as you search for a new job. There are a variety of sources for this loan, such as a friend, loved one or even a stranger. Regardless of whom you approach, you have to be professional and thorough with your pitch--otherwise your requests will be in vain. You have to be smart with what you say and completely open about your financial situation.

    • Step 1

      Gather up all of your items of value and determine how much everything is worth. Make a list and add everything up to determine the total value of what you own. This will be your collateral.

    • Step 2

      Get a copy of your FICO score and credit report (See "Additional Resources, below).

    • Step 3

      Draw up a two- or three-page proposal that states why you need the loan, what you are doing to get a job (such as where your resume is posted and how many interviews you are doing each week) and how and when you plan to repay the loan. Include the information about your collateral on the last page of the proposal so that the lender will know he is covered if you can't find a job in a reasonable amount of time.

    • Step 4

      Identify three to five people who you believe would be willing to lend you money. These should be people who value you as a person and know how hard you worked when you had a job. You can also post an ad on Craigslist or another classified site with your loan request. Finally, there is an online service called Prosper.com that allows you to get personal loans from a variety of people, but you need to have decent credit and full disclosure of your financial affairs (See "Additional Resources").

    • Step 5

      If you chose a family member, friend or other person you know to ask for a loan, call him to set up an appointment when it is most convenient for him.

    • Step 6

      Be professionally dressed and well groomed when you go to the potential lender's home.

    • Step 7

      Present your proposal and speak in a professional manner. Let him see your credit score and/or report (only if your score is over 600). Answer all of his questions honestly. Don't over talk. Allow him to take a look at your collateral upon request.

    • Step 8

      Wait for a decision. If you do receive a personal loan, don't get lazy. Work twice as hard to get employment so that you can pay your lender back.
    • Skill: Moderately Challenging
    • Ingredients:
    • Collateral
    • Hard work ethic
    • Good reputation
    • Decent credit rating over 600
    • Tip: Describe every detail of what you plan to do in your proposal, right down to whom you will be paying with the money if the loan is granted. Offer to give proof to the lender that you paid these people so that he will know you didn't squander the loan.
    • Tip: Get your story straight before going in for a meeting with your potential lender; anticipate the questions that will be asked about your ability to repay the loan, and come up with a great answer for each.
    • Tip: If you choose to get a personal loan from an Internet lending service like Prosper.com, you have to be just as professional and thorough with your approach.
    • Warning:
    • If you were known to be a slacker in the past or are continuously fired from jobs, you may not have much luck getting a personal loan.
    • Don't burn bridges by attempting to get a personal loan when you have no intention of getting a job or paying it back in the near future.

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