Loans for Unemployed – What Are Your Options?

By on November 25th, 2018

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It is quite hard for unemployed people to borrow money from an official institution or a lender, whether it is a loan, a credit card, or mortgage. One has to pay interest and also has to have a stable income, which is difficult to guarantee when being unemployed. Because of this, most lenders do not want to give loans to people without a job or stable revenue.

If you say to a potential lender “I need money today but I’m unemployed at this moment,” he will most likely consider you as “a risky customer.” He might give you a loan under certain conditions, such as higher interest and stricter terms.

And yet, getting an unemployed loan is possible. Explore with our online installment loans specialists how to increase the chances of getting a loan without a job, the prospective risks and things you should be aware of.

Should You Apply For a Loan for Unemployed?

Financial specialists tend not to recommend getting loans for unemployed people. While your debts grow, life can throw up some unpredictable major costs, like an illness, a wedding or a baby.

If you don’t have enough income to do the timely repayments, you won’t be able to get emergency loans for unemployed. The debts can make you take out a new loan that makes the borrowing process endless.

However, if you want to take out a loan without credit check, check the loan market to find the best deal. You should conduct research, check your credit history and plan a budget (how you will use this money and repay a loan).

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Loans for the Unemployed with Bad Credit

One can receive a loan even without a job. Yet, it is more difficult, risky and can cost more. Before deciding whether to give you a loan, each lender will check your credit report and that is a required step.

Therefore, before trying to get a loan or other credit type, particularly if you don’t have a job and stable income – check your credit history online. It will show:

  • Your credit score
  • Your loan payments and utility bills
  • How much credit you have
  • Your recent credit applications (and whether they were approved or declined).

Any credit report agency will give you extra information, depending on your package, for example, a risk of becoming a victim of identity fraud. It is possible to get a credit report free of charge from the credit checking company, like Experian or Credit Karma.

It is also important to increase your credit score. The main ways to do this are to rectify the missed repayments and make a voter registration at your address. It will prevent credit fraud.

Yet, these are the minimum requirements to get loans for the unemployed with bad credit. Before applying for this type of loan, you should check the criteria section on the page of a loan application and pay attention to the information about the required minimum income.

Borrowing Options for the Unemployed People

One of the fastest ways to get fast cash is to use credit cards or ask your friends and/or family for a loan. Other borrowing options are:

1. Personal loans. Personal loans for unemployed do not use your assets as collateral. It is a big risk for the borrower, so it is almost impossible to take it out. Lenders tend to give loans to people with a high credit score.

2. Borrowing against your life insurance or home. A Home Equity Line of Credit (HELOC) is a loan type that is similar to a credit card with a revolving balance. You can use this option if you have a large amount of your equity in real estate, and some income (alimony, unemployment and so on). You can get some money when contacting your life insurance company and asking about the policy. Before this, talk to your credit union or local bank.

3. A loan with co-signers. If your family member or a friend has better credit and agrees to co-sign a loan, you will be able to get a potentially bigger loan.

4. Cash advances. Some credit cards offer this option. It may help you get the emergency cash loans for unemployed. However, note that their interest rate is high.

5. Car title loans. This is an option for those whose car loan is fully repaid or it costs more than you owe. In this case, you can try this type of borrowing. The loan company will hold a title until you repay the loan on it. As a rule, you fill in an online application and then inspect your car in person. The rates of car title loans for unemployed are not as high as of cash advances.

6. Debt consolidation loans. This loan type can help decrease monthly repayments and return what you owe in an easier way. It will also help you avoid creditors and pay a lower interest.

7. Payday loans. Payday lenders check not your income only, but the proof of disability, unemployment or alimony as well. This is the fastest way to get online loans for unemployed. They can give you instant cash. However, they are incredibly risky and have an extortionate interest. Watch out for the ‘loan sharks’ – they can make your financial situation even worse.

8. Pawnbrokers. This is another way to get some cash, instead of seeking for free loans for unemployed. If you fail to pay back, they take the item you gave them. Why is it a worthy option? It doesn’t affect your credit history.

Final Tips

There are some types of unemployed loans, but they are limited anyway. Whatever option you choose, always pay attention to all the terms of an agreement and calculate whether it will help your financial situation or make it worse.

If you don’t have a stable income, avoid the secured loans – they are not worth depriving of your home.