Loans for unemployed people: can you still borrow?
Being unemployed does not automatically rule you out of borrowing. If you have a regular source of income, whether from benefits, a pension, or other means, lenders may still consider your application. The key factor is affordability, not your job title.
New Horizons searches over 50 FCA-authorised lenders to help find options suited to your circumstances, even if you are not currently employed. Our Soft Credit Match technology checks your eligibility without leaving any mark on your credit file, so you can see what is available before making any commitment.
Many people searching for unemployed loans need funds the same day. Whether you are between jobs, caring for a family member, or living on benefits, we understand that financial pressures do not wait for your next pay cheque. If approved by a lender, funds can be in your account within 15 minutes.
How unemployed loans work at New Horizons
Applying through New Horizons is straightforward, even if your employment situation is complicated. Here is how the process works.
- Complete our short online form with your personal details, income information, and the amount you need to borrow
- We run a Soft Credit Match across our panel of over 50 FCA-authorised lenders
- If matched, you see your loan options in minutes, with no impact on your credit score
- Choose the offer that works for you, or walk away with no obligation
- If you accept an offer, the lender completes a full affordability check and credit search
- If approved by the lender, funds can be in your account within 15 minutes*
The application takes around three minutes from start to finish. Our service is available 24 hours a day, 7 days a week, so you can check your eligibility whenever suits you.
New Horizons is a credit broker, not a lender. We do not make lending decisions ourselves. Instead, we connect you with lenders who may be willing to work with people in your situation. Our service is completely free to use, and we never charge you any fees.
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What counts as income if you are unemployed?
You do not need a traditional salary to qualify for a loan. Many lenders on our panel accept alternative income sources as part of their affordability assessment. The important thing is that your income is regular and reliable enough to cover the repayments.
Income sources that lenders commonly accept include:
- Universal Credit
- Personal Independence Payment (PIP)
- Disability Living Allowance (DLA)
- Employment and Support Allowance (ESA)
- Child Benefit and Child Tax Credit
- Working Tax Credit
- State Pension or private pension income
- Carer’s Allowance
- Income from rental properties or investments
If your only income comes from benefits, you may still be eligible for a loan. Visit our dedicated loans for people on benefits page for more detailed guidance on borrowing with benefit income.
If you have no income at all, it is very unlikely that any responsible lender will approve your application. All FCA-authorised lenders are required to carry out affordability checks, and lending to someone with no means of repayment would not meet those standards.
Different Types of Loans for Unemployed People
Can you get unemployed loans with same day payout?
Yes, same day funding is possible if you are approved by a lender. Many lenders on our panel offer fast transfers once your application has been accepted.
If approved, your cash can be sent within 15 minutes.* The time it takes for the money to reach your account depends on your bank’s processing times. Most major UK banks process faster payments almost instantly, but some may take a few hours.
If speed is your priority, you can also look at our same day loans and quick loans pages for more options. The application process is the same regardless of which page you start from, as our system searches the full panel of over 50 lenders every time.
Eligibility requirements for unemployed loans
To apply through New Horizons, you will need to meet the following basic criteria:
- Be at least 18 years old
- Be a UK resident
- Have a UK bank account
- Have a regular source of income (this does not need to be from employment)
- Provide accurate personal and financial information
Individual lenders may have additional requirements, such as a minimum income threshold or specific types of accepted income. You will see these details when you review any loan offers matched to your profile.
Checking your eligibility with New Horizons will not affect your credit score. We use a soft search that is invisible to other lenders. Only if you choose to accept an offer will the lender carry out a full credit check.
If you have been refused a loan elsewhere, it does not mean you will be declined through our service. Different lenders have different criteria, and our panel includes specialists who work with a wide range of circumstances.
Understanding the costs of borrowing while unemployed
Borrowing when you are not working requires careful thought about affordability. Loans for unemployed people may come with higher interest rates than those offered to employed borrowers, as lenders factor in the additional risk.
New Horizons’ representative APR is 49.9%, which is significantly lower than many competitors in this space. Some other brokers charge representative rates of 79.5% to 91% or higher.
Here is what a typical loan looks like in practice. Representative example: amount of credit: £1,200 for 18 months at £95.44 per month. Total amount repayable: £1,717.83. Interest: £517.83. Interest rate: 49% pa (fixed). Representative 49.9% APR.
The rate you are offered will depend on your individual circumstances, including your income, credit history, and the amount you want to borrow. Rates range from 9.3% APR to a maximum of 1,721% APR. Always check the total amount repayable before accepting any offer, not just the monthly payment.
If you only need a small amount, borrowing less can reduce the overall cost. You might consider a £100 loan or £500 loan rather than the maximum available.
Why choose New Horizons for unemployed loans?
Finding a lender willing to consider your application when you are out of work can feel frustrating. Many mainstream banks will not look past your employment status. New Horizons takes a different approach.
We search over 50 FCA-authorised lenders to help find your best match, including specialists who work with unemployed applicants, people on benefits, and those with imperfect credit histories. One application gives you access to the entire panel.
Our Soft Credit Match technology means you can check your options without any risk to your credit score. Established in 2017, New Horizons holds a Feefo Gold Trusted Service rating, reflecting consistently positive customer feedback.
We also operate under a formal Customer Promise built around three commitments:
- We never sell your personal data
- We never contact you to sell other products
- We never give consent to other companies to contact you
We never sell your data. We never spam you. We never share your details without permission. In an industry where data selling and unwanted contact are common complaints, these commitments set us apart.
Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk
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Apply for a loanAlternatives to borrowing when you are unemployed
Taking out a loan is not always the best option, especially if your income is limited. Before applying, it is worth considering whether other support could help.
- Universal Credit advance payments: if you have recently claimed Universal Credit, you can request an advance to cover costs while you wait for your first payment
- Budgeting Loans or Budgeting Advances: available through the Department for Work and Pensions for people on certain benefits, these are interest-free loans repaid through your benefits
- Local welfare assistance: many councils offer emergency grants or loans for essentials like food, energy, or clothing
- Credit unions: these not-for-profit organisations often lend to people on lower incomes at much lower interest rates than commercial lenders
- Charitable grants: organisations like Turn2us can help you search for grants you may be eligible for based on your circumstances
If you are struggling with existing debts, free advice is available from MoneyHelper, StepChange, Citizens Advice, and National Debtline. These services are completely free and confidential.
If you do decide that a loan is the right choice, only borrow what you genuinely need and can comfortably afford to repay. Our lenders will carry out affordability checks, but doing your own calculations first is always a good idea.
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Unemployed loans and your credit score
Many people worry that applying for a loan will damage their credit rating, especially if they are already in a difficult financial position. With New Horizons, your initial eligibility check is completely safe.
Our Soft Credit Match uses a soft search that is invisible to other lenders and will not affect your credit score. Only you can see this search on your credit report.
If you accept a loan offer and proceed with a lender, they will carry out a full credit check at that stage. This will appear on your credit file and may be visible to other lenders. This is standard practice for all regulated lending in the UK.
If you have bad credit, whether from missed payments, defaults, or CCJs, our panel includes lenders who specialise in working with people across the credit spectrum. A low credit score does not automatically mean you will be declined. Learn more about how to improve your credit score while you are between jobs.
Do you need a guarantor for an unemployed loan?
No, you do not need a guarantor to apply through New Horizons. Our lender panel includes many options for no guarantor loans that assess your application based on your own income and circumstances.
All decisions are based on your personal affordability, not whether you can find someone to co-sign. This means you can apply independently without involving family members or friends.
Some specialist lenders may offer guarantor loan products separately, but these are not required when using our service. If you would prefer to apply without a guarantor, our system will match you with lenders who do not require one.
Frequently asked questions about unemployed loans
Can I get a loan if I am unemployed?
You may be eligible, provided you have a regular source of income. This could be benefits, a pension, rental income, or other reliable funds. Lenders assess affordability rather than employment status alone, so having consistent income is what matters most.
What are unemployed loans with same day payout?
These are loans where, if approved, funds can be transferred to your bank account on the same day you apply. Through New Horizons, if approved by a lender, funds can be sent within 15 minutes. Actual bank processing times may vary.
Can I get a loan with no income at all?
No. FCA regulations require all lenders to carry out affordability checks before approving a loan. If you have no income, you will not pass these checks. If you are in financial difficulty with no income, contact MoneyHelper for free guidance on your options.
Will checking my eligibility affect my credit score?
No. New Horizons uses a Soft Credit Match that will not appear on your credit file. Other lenders cannot see it, and it has no impact on your credit rating. Only if you accept a loan offer will the lender perform a full credit search.
How much could I borrow if I am unemployed?
Loans from £50 to £5,000 are available through our panel, with repayment terms from 3 to 36 months. The amount you are offered will depend on your income, outgoings, and the lender’s individual criteria. Borrowing a smaller amount may improve your chances of being matched.
Do benefits count as income for a loan application?
Yes. Many lenders on our panel accept benefit income, including Universal Credit, PIP, DLA, ESA, and Child Benefit. The lender will assess whether your total income is sufficient to cover the repayments alongside your existing commitments. See our benefits loans page for more information.
Can I get an unemployed loan with bad credit?
You may still be matched with a lender. Our panel includes specialists who work with applicants across all credit histories. While having bad credit alongside unemployment may limit your options, it does not automatically mean you will be declined. A lower loan amount may improve your chances of finding a match.
Is New Horizons a lender?
No. New Horizons is a credit broker, not a lender. We search over 50 FCA-authorised lenders to help find options matched to your circumstances. We never charge you any fees for using our service. New Horizons Finance Ltd (Company No. 11757330, FCA reference: 834535) is an Appointed Representative of Flux Funding Limited (FRN 806333).
How quickly can I get the money?
If approved by a lender, funds can be sent within 15 minutes. The time it takes for money to appear in your account depends on your bank’s processing times. Our service is available 24/7, including weekends and bank holidays.
What happens if I cannot repay my loan?
Contact your lender immediately if you are struggling with repayments. They are required to treat you fairly and may be able to arrange a revised payment plan. Late payment fees can range from £1 to £100 depending on the lender. Missing payments will also affect your credit score. For free debt advice, contact StepChange or Citizens Advice.
Are there any fees for using New Horizons?
No. New Horizons does not charge customers any fees for using its services. We are paid by lenders through commission when a loan is successfully arranged. The service is completely free to you regardless of the outcome.
Can I apply if I am retired?
Yes. Pension income, whether state or private, is accepted by many lenders on our panel. You will need to meet the same basic eligibility criteria as other applicants. Your pension income will be assessed for affordability in the same way as any other regular income.
What if I have just started a new job but have not been paid yet?
You may still be eligible. Some lenders consider applicants who can demonstrate that employment has been confirmed, even if wages have not yet been received. Having an employment contract or offer letter can support your application. If you need funds urgently to bridge the gap, our emergency loans page has additional guidance.
Is it safe to apply for a loan online?
Yes. New Horizons uses the latest security measures to protect your personal information. All data is encrypted, and we never sell your details to third parties. Our Three Nevers customer promise guarantees your privacy is protected throughout the process.
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