Best Personal Loans for Low-Income Individuals

Banking

Borrowers with low incomes tend to have a tough go of it. It’s hard for you to cover unexpected costs beyond your standard monthly expenses. But since your income is low, it’s also hard for you to get approved for a personal loan.

woman on bus

Being a low-income borrower is a difficult situation to be in, but you don’t have to continue to struggle financially. There are plenty of lenders who are willing to work with you.

Can I qualify for a personal loan with low income?

Yes, it’s possible to qualify for a personal loan, but you do have to choose wisely. Many lenders will see you as a higher risk borrower, so you will likely receive a higher interest rate and less favorable loan term.

That’s why it’s a good idea for people with low-income to try online lending marketplaces. Many of these loan aggregators specialize in working with individuals that have low incomes and bad credit.

When you visit a lending marketplace, you’ll fill out an application just like you would for any other loan. You’ll enter your name, address, phone number, and provide proof of income.

The loan aggregator will then match you to a variety of lenders that are willing to work with you. From there, you can compare multiple offers and see which lenders offer you the best interest rates and loan terms.

5 Personal Loans for Low-Income Individuals

Listed below are five lending marketplaces that are good options for low-income borrowers.

1. CashUSA

Crediful’s rating
Visit Site
Overview

CashUSA is another online lending marketplace. The company offers installment loans between $500 to $10,000, with interest rates ranging between 5.99% and 35.99%.

When you apply on the company’s website, you’ll start by filling out a loan request form. Once you’ve finished the application process, you’ll begin receiving offers from lenders. If you accept one of the low income loans offered to you, then you will finalize the process with the lender.

Here are the requirements you’ll need to meet to qualify through CashUSA:

  • Be at least 18-years-old
  • You must be a U.S. citizen or permanent resident
  • Provide a valid phone number and email address
  • Earn $1,000 per month after taxes
  • Have a checking account in your name

2. MoneyMutual

Crediful’s rating
Visit Site
Overview

MoneyMutual is an online marketplace that specializes in working with consumers that have poor credit scores. The company offers quick, short-term loans for up to $2,500.

However, MoneyMutual will not be the company lending you the money. You apply on their website, and the company matches you with other qualified lenders who are willing to work with you.

Here are the requirements you’ll need to meet to qualify through MoneyMutual:

  • Be at least 18-years-old
  • Have a regular source of recurring income
  • Earn at least $800 per month
  • Have an active checking account the money can be transferred to

If you’re approved for a loan, you can receive the funds in as little as 24 hours. MoneyMutual is not available for New York residents.

3. BadCreditLoans

Crediful’s rating
Visit Site
Overview

BadCreditLoans is another lending marketplace that works with borrowers who have poor credit. You can take out a loan for up to $5,000, with an APR range between 5.99% and 35.99%. The loan term will typically fall between three to 60 months.

The application process is easy, and you can receive the funds as soon as the next business day. Bad Credit Loans lets you compare offers from multiple lenders and see who offers you the best terms.

Here are the requirements you’ll need to meet to qualify through BadCreditLoans:

  • Be at least 18-years-old
  • You must be a U.S. citizen
  • Have a valid phone number and email address
  • You must have a regular income
  • Have an active checking account in your name

4. PersonalLoans.com

Crediful’s rating
Visit Site
Overview

PersonalLoans.com is a lending marketplace, and it provides some of the most flexible loan terms available. You can apply for a personal loan between $500 and $35,000, with an APR range between 5.99% and 35.99%.

PersonalLoans.com is available in all 50 states, and the loans can be used for any type of expense. You can apply on the company’s website, and you should find out right away whether you’re approved.

Here are the requirements you’ll need to meet to qualify through PersonalLoans.com:

  • You must be at least 18-years-old
  • You must have a checking account in your name
  • Provide proof of income
  • You can’t have any recent bankruptcies or charged-off accounts

5. CashAdvance.com

Crediful’s rating
Visit Site
Overview

CashAdvance.com is a loan aggregator that connects borrowers with bad credit to short-term loans. You can receive a loan for up to $1,000 from the company’s network of lenders.

The application process is easy, and if you’re approved, you’ll receive the money as soon as the next business day. However, the APR range will be between 200% and 2,290%, so this should be your last resort.

Here are the requirements you’ll need to meet to qualify through CashAdvance.com:

  • Be at least 18-years-old
  • You must be a U.S. citizen
  • You need a valid phone number and email address
  • Have proof of employment
  • You must earn at least $1,000 per month

How do I provide proof of income?

Some financial institutions are willing to work with low-income individuals, but you will need to be able to provide proof of income. If you have a regular monthly income, that shows the lender that you have the cash flow to repay your loan every month. Most lenders want to see that you bring in at least $800 to $1,000 per month.

However, you don’t necessarily need to be employed full-time to find lenders that will be willing to work with you. You just need to show that you have a consistent source of income, which could include things like Social Security payments or disability benefits.

If you can’t provide proof of your income, you’ll need to consider other alternatives. Applying with a cosigner is a good idea since their income will be considered as well.

If that isn’t an option, you can consider taking out a cash advance on a credit card or refinancing your car or home for extra money. These options aren’t ideal but they could help you get through this difficult financial season.

Summary

If you bring in at least $800 in income per month, you could qualify for a personal loan. Apply for a personal loan through a lending marketplace so you can receive loan offers from multiple lenders. Pay close attention to the loan amount, APR, terms and conditions, and fees.

Jamie Johnson
Meet the author

Jamie Johnson is a freelance writer who has been featured in publications like InvestorPlace and GOBankingRates. She writes about a variety of personal finance topics including student loans, credit cards, investing, building credit, and more.