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How to Get a Personal Loan as a New Employee

Updated on April 9, 2024

At a Glance

  • Employment is a crucial factor for loan qualification, alongside credit score and cosigner availability.
  • Lenders may require a minimum employment length or accept an offer letter for new employees.
  • Temporary workers can access loans based on their current work situation and a letter of employment for their next job.
  • Various lenders offer personal loans for employees with offer letters or new jobs, each with specific requirements.

In January 2022, 467,000 jobs were added to the U.S. economy. If you were one of the people who started a new job or will start a new job soon, you may be able to get approved for a loan based on your offer letter.

An offer letter indicates future income, reducing risk in the eyes of the lender regardless of whether your start date has come or not. However, lenders also value stability and reliability, so if you haven’t held your current position for a significant length of time, your application may be penalized.

Despite these considerations, it’s indeed feasible for individuals armed with job offer letters to achieve loan approval. Moreover, there are proactive measures you can undertake as a new employee to bolster your chances of loan approval. This article aims to unravel the specifics of these steps and elucidate how they can aid in your quest for obtaining credit.

For those navigating this process, considering loan options through platforms like Fiona can be particularly advantageous. Such platforms offer a gateway to various loan products, potentially easing the way for new employees to secure loans by showcasing their future earning potential through offer letters.

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5 Best Lenders Who Offer Loans for New Employees

Now that you know it’s possible to get a personal loan with an offer letter, let’s take a look at some of the lenders who you should consider when applying for an offer letter loan. At a glance, our picks include:

  1. AmOne (Best for Okay Credit and Good Credit)
  2. Spotlight Loans (Best for Bad Credit)
  3. Spring Loans (Best for Bad Credit and No Credit)
  4. First Premier Lending (Best for Bad Credit)
  5. Upgrade (Best for Good Credit)
  6. BestEgg (Best for Okay Credit)

Read on to learn about our picks for best offer letter loan lenders!

1. AmOne (Best for Okay Credit and Good Credit)

AmOne’s robust lender-matching platform caters to a diverse range of borrower needs. For individuals who have recently landed a job but have yet to receive their first paycheck, AmOne can connect them to lenders who might be willing to consider a job offer letter as a valid proof of future income, making the loan application process smoother.

AmOne Personal Loan

4.5
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

600

Fixed APR

3.99%-35.99%

Variable APR

N/A

Overview

  • Minimum credit score: 600.
  • Fixed APR: 3.99%-35.99%.
  • Loan amounts: $1,000 to $50,000.
  • Repayment: 1 to 7 years.

Qualifications

  • Must be at least 18 years old.
  • Must be a U.S. citizen or permanent resident.
  • While there’s no specific income requirement, a consistent source of income is essential for the applicant.

Pros

  • Suitable for individuals with lower credit scores.
  • No cost for the matching service.
  • Attractive loan rates.

Cons

  • Acts as an intermediary, not a direct lender.
  • Risk of multiple contacts from prospective lenders.
  • Lack of clarity on lender details.

2. Spotlight Loans (Best for Bad Credit)

Spotlight Loans aims to streamline the personal loan process, offering borrowers fast access to funds with terms that accommodate a variety of financial situations, making it a go-to option for those in need of prompt financial assistance.

Spotlight Loans

4.8
Stilt rating
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

None

Fixed APR

6.63% and up

Variable APR

N/A

Overview

  • Minimum credit score: n/a
  • Variable APR: 4.99% and up
  • Loan amounts: $100 – $5,000
  • Repayment: Depends on choice of lender

Qualifications

  • Be 18 years of age or older
  • Have a checking or savings account
  • Have regular income
  • Have a fair credit rating

Pros

  • Spotlight Loans is willing to work with individuals who have less-than-perfect credit, making it a viable option for those who may struggle to secure loans from traditional lenders​​​​.
  • Spotlight Loans offers same-day approval and funding, which is beneficial for those in urgent need of funds. This makes it a good option for emergency financial situations​​.
  • Unlike traditional payday loans, Spotlight Loans provides the option to repay the loan over a period of months, offering more flexibility in repayment planning​​​​.

Cons

  • One of the most significant drawbacks of taking a personal loan with Spotlight Loans is the potentially high interest rates. With APRs that can be much higher than traditional personal loan lenders, this can lead to substantial interest payments over time​​.
  • Spotlight Loans offers loan amounts that are relatively low, which may not be sufficient for all borrowers’ needs​​​​.
  • Spotlight Loans services are not available in all states, so it’s important to check if you reside in an eligible location before applying​​.

3. Spring Loans (Best for Bad Credit and No Credit)

Spring Loans understands that financial needs can arise even before starting a new job. With their flexible lending options, they might entertain personal loan applications backed by a solid job offer letter, providing prospective borrowers a way to bridge the gap between immediate financial requirements and their upcoming employment.

Spring Loans Personal Loan

4.2
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

Overview

  • Minimum credit score: None.
  • Fixed APR: 27.00%
  • Loan amounts: $3,000.
  • Repayment: 48 months.

Qualifications

  • Demonstrate a recurrent income.
  • Minimum age prerequisite: 18 years.
  • Validate U.S. citizenship status with an SSN.
  • Provide a legitimate U.S. driver’s license or a state identity card.
  • Establish a functional bank account for incoming deposits.
  • Adhere to any specific demands by the loan provider.

Pros

  • Open to applicants with any credit background.
  • Four-year loan period aids in structured financial management.
  • The $3,000 offer addresses several short-term financial challenges.
  • Wide-reaching eligibility criteria invite a broad spectrum of applicants.
  • The focus on dependable income over job title benefits varied income sources.

Cons

  • The set 27% APR is higher than many alternatives.
  • Restriction to a $3,000 loan might not cover all financial outlays.
  • Possessing specific IDs is mandatory, sidelining some applicants.
  • A prerequisite for an ongoing bank account may limit certain users.

4. First Premier Lending (Best for Bad Credit)

First Premier Lending, known for its tailored lending solutions, recognizes the value of a credible job offer. Prospective borrowers presenting a job offer letter from a reputable employer might find First Premier Lending more accommodating, offering them a feasible route to secure funds based on anticipated income.

First Premier Lending Personal Loan

4.2
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

Overview

  • Minimum credit score: None.
  • Fixed APR: 27.00%.
  • Loan amounts: $3,000.
  • Repayment: 48 months.

Qualifications

  • Maintain a consistent source of income.
  • Must be at least 18 years of age.
  • Possess valid U.S. citizenship and a legitimate social security number.
  • Hold a current U.S. driver’s license or state-issued ID.
  • Keep an active bank account for direct deposit.
  • Satisfy any lender-specific criteria, such as credit rating, borrowing history, or place of residence.

Pros

  • No minimum credit score requirement allows accessibility for those with varied credit histories.
  • 48-month term provides clarity and allows for long-term financial planning.
  • Specific loan amount of $3,000 can meet many short-term financial needs.
  • Broad set of qualifications make the loan accessible to a wide range of people.
  • Emphasis on consistent income, not necessarily employment type, allows flexibility for borrowers.

Cons

  • A fixed APR of 27% is relatively high.
  • Loan amount is capped at $3,000, which might not cater to larger financial requirements.
  • Requirement of a U.S. driver’s license or state-issued ID could exclude some individuals.
  • Mandatory active bank account could be limiting for those who are unbanked.

5. Upgrade (Best for Good Credit)

Upgrade’s focus on transparent and comprehensive lending solutions means they assess various factors during the loan application process. For individuals holding a job offer letter and in need of immediate financial assistance, Upgrade could be an avenue to explore, as they might weigh the potential of future earnings against current financial standing.

Upgrade Personal Loan

5.0
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

560

Fixed APR

8.49% - 35.99%

Variable APR

N/A

Overview

  • Minimum credit score: 560
  • Fixed APR: 8.49% – 35.99%
  • Loan amounts: $1,000 to $50,000
  • Repayment: 3 to 5 years (7 years on some larger loans)

Qualifications

  • Possess an active bank account.
  • Able to provide a legitimate email address.
  • Minimum age requirement: 18 years (19 for Alabama residents).
  • Credit score of 600 or higher.
  • Annual income of $25,000 or more.

Pros

  • Willing to accommodate borrowers with a credit score as low as 560.
  • Offers flexibility with a range of loan amounts from $1,000 to $50,000. This can be suitable for both small and large financial needs.
  • Provides options for repayment, allowing borrowers to choose a timeline that best suits their financial situation.
  • Once approved, borrowers can access funds in just one day, which is useful for urgent financial needs.

Cons

  • Origination fees can go as high as 9.99%, which might add a significant cost to the loan.
  • Apart from the origination fee, there are fees for late payments and failed payments, which can add up if one is not careful.
  • While there is an option to extend repayment for larger loans up to 7 years, it’s not standard for all loan amounts.

6. BestEgg (Best for Okay Credit)

BestEgg, with its streamlined application process, can be a viable option for those in the unique position of having a job offer in hand but not yet earning from it. Their approach to personal loans might take into consideration the potential stability and income promised by a valid job offer, providing an option for those in transitional phases of their career.

BestEgg Personal Loan

4.5
Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.
Min. credit score

600

Fixed APR

8.99-35.99%

Variable APR

N/A

Overview

  • Minimum credit score: 600.
  • Fixed APR: 8.99-35.99%.
  • Loan amounts: $2,000-$50,000.
  • Repayment: 3 to 5 years.

Qualifications

  • Targets borrowers with good to excellent credit; fair credit may qualify.
  • Minimum credit score of 600.
  • At least two years of credit history.
  • Minimum annual income: $3,500 from various sources like employment, alimony, and more.
  • Debt-to-income ratio: 40%, or 65% when including a mortgage.
  • Must be a U.S. citizen.

Pros

  • Soft credit check available for pre-qualification.
  • Offers a diverse spectrum of loan amounts.
  • Provides options for secured loans.
  • Direct payments can be made to creditors for debt consolidation.
  • Late fees are not charged.

Cons

  • Charges an origination fee.
  • Doesn’t offer rate discounts.
  • Initial payment date isn’t customizable.
  • Lacks a dedicated mobile app for loan management.

Methodology: How We Decide on the Best Loans for Those With Offer Letters

Stilt considers a holistic range of features when considering personal loan lenders, including, but not limited to: accessible customer service, reporting of payments to credit bureaus and financial education, flexible payment options, related fees, soft credit checks, and transparency of loan rates and terms. We also review consider the complaints filed with agencies like the Consumer Financial Protection Bureau. Stilt is not compensated in any way for our reviews and recommendations.

Recap: Offer Letter Personal Loan Options

  • AmOne (Best for Okay Credit and Good Credit)
  • Spring Loans (Best for Bad Credit and No Credit)
  • First Premier Lending (Best for Bad Credit)
  • Upgrade (Best for Good Credit)
  • BestEgg (Best for Okay Credit)

How to Improve Your Chances for Approval as a New Employee

As a new employee without significant history at your current employer, you must demonstrate your reliability to lenders in other ways.

Following the tips below will help reduce the risk for the lender and thus improve your chances of being accepted, as well as help you get better interest rates:

Check Your Credit Report – Besides employment and income, having a good credit history is the most important factor that lenders consider, so you should know your credit score before applying. Paying your credit card bills and other monthly payments on time and keeping your debt-to-income ratio low will show lenders that you are financially responsible.

Wait to Apply – Probationary periods upon starting a new job are typically 3 to 6 months, and if your need for a loan is not urgent, it can be helpful to wait that period and apply once you’ve held your job for a more substantial amount of time.

Apply for a Lower Amount – Requesting a smaller loan is a simple way to improve your chances of being accepted as the lender will see you as being more likely to succeed in repayment. Since stable income and employment reduce this risk, if you stay at your position for a long time and have a good income, you can apply for a larger loan.

Let Your Employer Know – Lenders sometimes verify the employment information in your application by contacting your employer. By letting your employer know that you are applying for a loan, you can ensure that they are prepared to interface with the lender if they are contacted.

Contact the Lender Directly – If you have any questions about the application process or eligibility requirements of a specific lender, contacting them directly can be helpful. By speaking with a lender you can get a thorough understanding of their criteria, and you can make sure to take the proper steps to be accepted.

Meet the Other Minimum Requirements – Length of employment is only one risk assessment factor. Lenders will also consider your income level and credit score. If you can meet these other minimum requirements, then you may still be accepted for a loan regardless of how long you’ve been employed.

Provide as Much Documentation as Possible – Since the key to getting a loan is establishing trust with the lender, providing as much documentation as possible about your assets will demonstrate an effort to build trust. Some assets may not be reflected in metrics like credit score or income, so providing more documents can help illustrate your ability to repay the loan on time.

Loans for Temporary Workers

Temporary workers struggle to access loans and lines of credit due to the nature of their jobs.

Business site Entrepreneur defines temporary workers as “Employees who are not permanently hired but hired just for limited periods of time”. Their work is not always consistent, and for lenders, that’s a red flag during risk assessment.

Temporary worker jobs include:

  • Contract workers
  • Freelancers
  • Casual staff
  • Seasonal basis

Even though temporary workers are not ideal borrowers, it does not mean they cannot access lines of credit and loans. Contractors, freelancers, and other temporary employees just have to work harder to show lenders that they can make loan payments.

How to Get a Loan as a Temporary Worker

There are several steps you can take as a temporary worker to improve your chances of being approved for a loan. These steps are:

Secure an Offer Letter – As this article has stressed, obtaining a job offer letter increases your chances for loan approval because it shows lenders your potential to make payments. For temporary workers, having an offer letter for your next job while currently under contract can further show that potential.

Stay in Your Profession – If you are currently employed on a contract and receive a contract extension it will show lenders that your income will be consistent for a longer period of time. The longer the contract, the greater your chance for approval will be.

Get a Cosigner – If you’re on a contract with an end date coming up, getting a cosigner can help you to get approved for a loan. A cosigner with a great credit score and a stable job will take some of the risks out of giving you a loan because the lender can feel confident that payments will be made if you don’t secure future employment. To learn more, check out our personal loans with cosigners guide.

Car Loans with Job Offer Letter

Whether you’re looking to take out an auto loan or a personal loan to buy a car, a job offer letter will increase your chances of approval. The same limitations will apply, though. The length of your employment, salary, and other factors will determine your eligibility.

That said, there are some ways to lower a lender’s risk when giving you a loan. Below are a few ways in which you can improve your chances to get car loans with job offers.

How to Get a Car Loan with an Offer Letter

Many of the same strategies used for improving your chances to get a loan as a temporary worker will help when it comes to getting a car loan:

Get a Job Offer Letter – As mentioned above, get a job offer in a written form and provide it with your application for a car loan. This proves to your lender that you will earn a salary capable of repaying the vehicle. The job offer helps to ease the mind of your lender since it lowers the chances that you might default on your car loan (lose the capability to repay the loan).

Make a Sizeable Down Payment – The down payment serves as a way to show the lender your commitment to the process and decreases the lender’s risk to loan you money. As added benefits, a down payment also lowers your interest rate and decreases the amount of debt on the car. The ideal car down payment is 20%, according to AutoTrade.

Get a Cosigner – Again, a cosigner will help to increase your chances to get a car loan. You can use the credit score of a cosigner to apply for a car loan. It will also help to lower the interest rate your lender would have charged you (compared to if you were the only one responsible for the loan).

Read More

Final Thoughts on Getting a Loan After Getting a New Job

Having just recently started a job, or not having started at all, is not an ideal time for getting a loan since lenders value consistent employment in a loan applicant. However, there are many other factors to consider, and if you have a strong financial profile and take the steps listed above, you might be able to obtain a loan with only an offer letter.

Additionally, it’s worth noting that the search for the perfect loan doesn’t have to be complicated. Whether you’re after a personal, payday, or any other type of loan, you can find your match with ease. Check out Fiona to explore your options and take the first step towards financial flexibility.

FAQs About Getting Loans With a Job Offer Letter & After Starting New Jobs

How Long Do I Have to Work to Get a Loan?

Technically speaking, you don’t have to be employed to qualify for a loan. There isn’t really such a thing as loans based on employment.

Instead, lenders consider a variety of factors—often including employment—when deciding whether to approve you for a loan.

If you’ve got a healthy credit score and a reliable cosigner, you should be able to qualify for some personal loans.

If you are newly employed and don’t have a cosigner, your ability to get a loan will depend on the lender’s criteria. In some cases, a lender may require you to have been at your new job for six months or even a year before you’re eligible.

Other lenders, though, will not require you to have been at your job for any specific amount of time before you apply for a loan.

Can I Get a Loan With a Job Offer Letter?

In many instances, all you will need is an offer letter and proof that you have accepted your new position. Some lenders will even provide loans for new employees as long as their start date is within 90 days.

If your offer letter shows that your salary will increase, you could even qualify for a larger loan amount and better terms than you would have been eligible for at an old job.

Can I Get a Loan If I’m Temporarily Employed?

While the options will be more limited, there are even loans for temporary workers.

Access to loans for temporary works is usually contingent upon their current work situation and if they have a letter of employment for their next job in hand already. This shows lenders that you will continue to have a source of income and be able to make loan payments even after the temporary job ends.

If you are a temporary worker but have an offer letter for a new job, you’ll have an easier approval process than you would if you are simply just working a temporary job.

If you are just working temporarily but don’t have a long-term job offer yet, it’s still possible that you will be approved for a loan. Factors like your credit score and current income will determine whether or not you’ll be approved.

>> Read More: Loans for Uber Drivers

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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