Best Personal Loans
While on Unemployment
Your benefits cover some bills — but maybe not all. Here are the lenders that actually work with reduced income situations, and how to borrow smart.
👇 Also important while you’re between jobs
Unemployment benefits replace 40–50% of your previous income — which for most people creates a real gap between what’s coming in and what needs to go out. Rent, car payments, utilities, and insurance don’t pause while you job search.
A personal loan used strategically can bridge that gap without destroying your credit or your finances. The key is knowing which lenders accept unemployment income, what rates to realistically expect, and how much to borrow.
Best Lenders for Unemployed Borrowers (2026)
These lenders explicitly accept unemployment benefits as qualifying income, offer soft credit pulls to check your rate, and have reasonable terms for borrowers in temporary income situations.
LendingTree isn’t a lender — it’s a marketplace that matches you with multiple lenders in one application. This means you see competing offers side by side and can pick the best rate and terms without applying to each one separately. Unemployment income is accepted. One form, up to 5 offers.
- Compare multiple lenders with a single soft credit pull
- Accepts unemployment benefits as qualifying income
- Loan amounts from $1,000 to $50,000
- No fees to use the comparison platform
- Results in minutes — funds in as little as 1 business day after approval
Upstart uses AI to evaluate more than just your credit score — it considers education, job history, and income sources including unemployment benefits. This makes it one of the most accessible lenders for people who are temporarily between jobs but have a solid financial background.
- Accepts unemployment and other non-traditional income
- Approves borrowers with credit scores as low as 300
- No prepayment penalty — pay it off early when you’re working again
- Funding as fast as next business day
Not sure how much you’ll receive in benefits?
Before you decide how much to borrow, know your exact weekly benefit amount. Our free calculator shows you your total payout by state — so you can plan the gap accurately.
💵 Calculate my unemployment benefits →Free calculator · All 50 states · No signup required
Avant specializes in borrowers with fair to good credit (580–700) who might not qualify for top-tier rates elsewhere. They explicitly accept unemployment benefits, Social Security, and disability income as qualifying income. The application is fully online and funding is typically next day.
- Specifically designed for fair credit borrowers
- Unemployment income accepted for qualification
- Flexible repayment terms from 12 to 60 months
- No prepayment penalty
SoFi is best for borrowers with good credit who need larger loan amounts. Uniquely, SoFi offers an Unemployment Protection Program — if you lose your job after taking out a loan, they can pause your payments while you search. For someone already on unemployment, they accept benefit income with a 650+ credit score.
- Unemployment Protection Program — pause payments if job loss occurs
- No origination fees, late fees, or prepayment penalties
- Loan amounts up to $100,000 for qualified borrowers
- Same-day funding available in some cases
Upgrade accepts borrowers with credit scores as low as 560 and explicitly includes unemployment benefits, gig income, and other non-traditional sources in their income calculation. While rates are higher for lower credit scores, Upgrade is one of the few lenders that genuinely works with the full picture of your financial situation.
- Accepts credit scores from 560
- Unemployment, gig, and freelance income all accepted
- Credit health tools included free with your account
- Direct payment to creditors option available
Side-by-Side Comparison
| Lender | Starting APR | Loan Range | Min. Score | Unemp. Income |
|---|---|---|---|---|
| 🏆 LendingTree | 6.99%+ | $1K–$50K | Varies | ✅ Yes |
| ⭐ Upstart | 7.80%+ | $1K–$50K | 300+ | ✅ Yes |
| 🏦 SoFi | 8.99%+ | $5K–$100K | 650+ | ✅ Yes |
| 💳 Avant | 9.95%+ | $2K–$35K | 580+ | ✅ Yes |
| 🔧 Upgrade | 9.99%+ | $1K–$50K | 560+ | ✅ Yes |
How Much Should You Borrow?
The right loan amount depends on your specific income gap — the difference between your monthly expenses and what unemployment covers. Here’s a simple way to calculate it:
- List your essential monthly expenses: rent, utilities, car, insurance, minimum debt payments
- Calculate your monthly unemployment income: weekly benefit × 4.3
- Subtract income from expenses to find your monthly gap
- Multiply by the number of months you realistically expect to job search
- That’s your target loan amount — don’t borrow more
Still waiting for your claim to be approved?
If you were denied, you can appeal — and most people who show up to their hearing win. Don’t leave money on the table while you wait.
Alternatives to a Personal Loan
Before borrowing, consider these options that cost less or nothing at all:
- 0% APR credit card: If your credit is good, a 0% intro APR card gives you 15–21 months interest-free — better than a loan if you’ll be working again soon
- Negotiate with landlord or creditors: Many will offer a temporary hardship deferral — especially if you ask before missing a payment
- SNAP and utility assistance: Federal programs can reduce your grocery and utility bills significantly during unemployment
- Community organizations: Local nonprofits, churches, and community action agencies often have emergency funds for rent and utilities
- 401(k) loan (not withdrawal): If you have a 401(k), a loan against it avoids taxes and penalties — but use only as a last resort
Frequently Asked Questions
Yes — most personal loan lenders accept unemployment benefits as qualifying income, as long as you can document the amount and expected duration. You’ll typically need to provide your award letter from your state unemployment agency showing your weekly benefit amount and benefit year end date. The lenders listed above all explicitly accept unemployment income.
Checking your rate with the lenders above uses a soft credit pull — no impact to your score. Only when you formally accept and finalize a loan does a hard inquiry appear on your report, which typically reduces your score by 5 points or less temporarily. Comparing multiple lenders within a 14-day window usually counts as a single inquiry on your credit report.
Upstart and Upgrade are your best starting points — both accept scores as low as 300 and 560 respectively, and both count unemployment income. Expect higher interest rates (often 25–35% APR) with lower credit scores. If the rates are too high, consider a secured loan using a savings account or car as collateral, which typically offers lower rates regardless of credit score.
No — a personal loan does not count as income for unemployment purposes and will not affect your weekly benefit amount. Loan proceeds are borrowed money, not earned income. You do not need to report a personal loan on your weekly unemployment certification. Only wages, freelance income, and self-employment earnings need to be reported.
Most online lenders fund approved loans within 1–3 business days. SoFi and Upstart often fund the same day for applications completed before noon. LendingTree’s marketplace connects you with lenders who may fund within 24 hours. To speed up the process, have your unemployment award letter, bank statements, and ID ready before you apply.
Disclaimer: Loan rates, terms, and eligibility requirements are subject to change and vary by lender and individual creditworthiness. This content is for informational purposes only and does not constitute financial advice. Always read the full loan agreement before signing. MyVirtualBlog.com may receive compensation when you click on lender links — this does not affect our recommendations.