Can I get a loan with a new job?

Yes, you can still get a loan if you have recently started a new job, but it may be more of a challenge to get accepted for the one you want.

As a rule, lenders see people who have spent just a short amount of time with their current employer as a greater risk. This may be because:

• When making redundancies, companies often operate on a last in, first out basis.
• You may still be in your probationary period, so there’s no guarantee your current employment status is permanent.

Simply put, if you’re new to your position, lenders may worry you lack job security.

Why does my job security matter?

Lenders care about your job security because it is likely to affect whether or not you’re able to meet your loan repayments.

If, for example, you have set monthly loan repayments of £300 and you lose your job with little notice, this unexpected loss of income could mean you’ll struggle to meet your repayments.

Not paying won’t only affect your credit history, but it will also result in more work for the lender if they have to chase you for payments.

Before lenders accept loan applications, they want to be confident that the borrower will maintain their repayments. Anything that could obstruct that – such as a job loss - might deter them. It’s worth remembering that each lender will have their own criteria, and some may be more flexible with the amount of time you’ve been in your role. 

How long do I need to have been at my job for?

There is no set answer for this. It might be worth waiting until you’ve been at your current job for at least three to six months (which is often the probation period in a new role) before applying for a loan, though.

Remember, loan applications can appear on your credit history, so it’s not a good idea to apply for several loans in a short space of time if you know beforehand there’s a slim chance of being accepted. Applying for lots of credit at once may be off-putting for lenders as it could suggest you’re struggling financially, and therefore might not be able to pay money back.

Use an eligibility checker

If you do decide to apply for a loan, it’s always a good idea to use an eligibility checker first. They allow you to see whether you’re likely to be approved for a loan before you apply, and importantly, without harming your credit score.

Eligibility checkers can usually be completed in a matter of minutes, and involve answering a few questions about yourself and your circumstances. The check will look at things like your credit score, income, and job status to gauge your likelihood of acceptance.

This way prevents you from completing applications which may decline, affect your credit score, and damage future chances of credit acceptance.

Other ways to strengthen your application

Although a new job will factor into the decision-making process of your loan application, there are a few other things that could strengthen your application and balance it out.

These include:

• A good credit history
• Sizeable equity in your home (if you’re applying for a secured loan)
• Your partner’s salary (if you’re applying for a joint loan)

Is now the right time to apply?

As we mentioned, if you’ve just started a new job, it might be worth holding off applying for a loan for a few months until your job security is a little more assured. You could even ask your employer to provide you with confirmation in writing when you pass your probation.

If you know that you’ll be leaving your current job soon and you don’t have another lined up, now may not be the best time to apply for a loan.

Remember, if you do decide to apply, use an eligibility checker first, so you can be more confident in the application’s outcome.