Can I get a payday loan with unemployment?

Quick Answer Yes, you can get a payday loan with unemployment benefits. Some lenders may consider unemployment benefits as a form of income, although eligibility criteria may vary. However, you should first explore alternative bad-credit loans and seek financial guidance as payday loans are expensive.

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Brenna Major Answer updated on Aug 19, 2023

Fact checked by Steven Hill

Yes, payday loans are available to those utilizing unemployment benefits.

Payday lenders typically will lend to those who have steady income and can prove it in some way.

By providing a record of your predictable unemployment income, and a form of ID, you have a good chance of being approved for a payday loan with unemployment. ✔️

Learn: Can I get a payday loan without direct deposit?

In fact, a payday loan lender is not allowed to disqualify your public assistance income.[1] Public assistance programs that would qualify include unemployment benefits and even Social Security payments.

Learn: Can you get a payday loan on social security?

Even though this type of loan is available to you (and doesn’t require a credit check), you might consider other loan options before you sign the dotted line ✍️

When you borrow with a payday loan, you’re not setting your “future self” up for success. Here’s why:

Say you’re running a bit short on funds this week and don’t get your unemployment benefits for another week. A payday loan might be tempting, but if you borrow $100, you will have to pay a $30 fee and repay the loan within the next two weeks.

Now, when your next benefit check hits, your "future self" will be down $30. This cycle can lead to accumulating more and more debt 😮

Whatever avenue you choose, it’s important to educate yourself on the risks and details of payday loans before you get one for yourself.

  1. Can a lender or broker consider whether I receive income from a public assistance program when deciding whether to give me a mortgage or home equity loan? ↩︎

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