A Guide to Obtaining a Loan for the Unemployed
If you suddenly become not employed, your first move is to file for unemployment insurance, along with all alternative government assistance programs you may be eligible for.
If you’re not eligible to participate in these programs or the help is not sufficient it is possible to obtain a loan even if you are not working. If you don’t have a job or a steady income it can be difficult to be approved. This guide can help improve your chances of obtaining the loan you need and remain financially secure.
Increase your odds of being granted a loan even if you are you are unemployed
If you’re looking for a loan when working, you’ll need to be very careful about the information you write on the loan application, which you select for your lender, and how you handle your money.
Here are some suggestions to remember in your quest to obtain an advance loan:
In the list of sources of income, including all sources in your loan application
There may be a lack of consistent paychecks however if you do have any income at all, it should to be included on the loan application because it can increase your chances of being approved. Include each source of income.
Include things such as:
- The retirement plan (or 401(k) distributions
- Social Security checks
- Disability income
- Benefits from unemployment (yes they count as income!)
- Capital gains, interest, and dividends earned from savings or investments
- Pension payments
- Rent income from rental properties (even rental properties for short periods)
- The earnings of your spouse
- Trust distributions, inheritances, or inheritances
- Support for children, spouse or spousal support or Alimony
You could even add any federal aid you are eligible for.
Find out if you are able to get an hourly job or work from home
If you’re not making the money you need, consider working a part-time or side hustle to earn additional money prior to when you apply for a loan. Applications like Uber, Lyft, Favor, and Shipt all offer basic part-time jobs, as well as platforms such Upwork and Fiverr, can be useful for finding freelance work.
Do your best to avoid falling in arrears with credit cards or other loans.
The lending institutions will be scrutinizing their credit score and payments history. If they find you are in arrears or owing to other loans, they’re going to be wary to give you a loan. Try to make timely payments and on time, with every credit card or loan that you may have (even when it’s only making the minimum payments).
Select a lender who targets the same type of consumer like you.
Some lenders are only willing to lend to those with good credit, while others are less stringent and are willing to provide loans to those who have average or poor credit scores. If your credit score isn’t great make sure you look around for your lender carefully. Choose one that is geared towards low-credit borrowers, and you’ll save time and effort.
For a better understanding of the possibilities, you can look at firms that provide loans for those with the below credit ranges:
Include a co-signer or co-applicant in your loan
The use of a cosigner, or a co-applicant may make it easier for you to get a loan, particularly when they have stable earnings along with good credit. Be sure to inform them of the terms of the loan they’re signing for (they’ll be held accountable for the debt in the event that you are unable to pay it back).
If you’re looking to take advantage of either of these alternatives, please click on an option below to read more details on these loan options, and then compare companies that provide these loans:
You can apply for a personal loan when you are not employed
If you’re eligible for one, the personal loan can help you to stay on the right track when times are difficult financially. Personal loans can be used to pay for anything and have fixed interest rates and regular monthly payments that you can rely on.
In general, you’re income level, credit score, credit history, and any existing credit history will be the primary elements a lender will consider when deciding whether to approve you for a personal loan. Although most lenders favor the borrower with a good credit score there are personal loans available for all credit groups, including those who have excellent, fair, or some bad credit.
It is important to note that bad-credit personal loans typically take the form of installment loans. They are typically short-term loans that have very low amounts.
Our experts suggest avoiding the use of any personal loan, installment, or another type of loan that has an APR of 36% or more. If you are only able to qualify for a loan under these conditions, you may want to think about one of the alternative products below.