Loans for the Unemployed: Where to Turn
When they absolutely need money now, unemployed people can still get credit from the right lender.
It's part of human nature to assume that the good times will last, the worst won't happen and that our plans will work out. If we didn't think like that, we'd all be bitter pessimists.
However, when this kind of thinking leads us to fail to prepare for unexpected setbacks like losing a job, we can easily find ourselves in the middle of a very rude wake-up call. In future, you may be more eager to save up some money for emergencies, but if you need cash now to pay unavoidable bills or unexpected expenses, you should be searching for loans for the unemployed.
Things to Know About Loans for Unemployed Individuals:
- Even if you don't have a job, you can probably find a lender willing to issue a loan to unemployed people.
- You will almost certainly pay very high interest rates, comparable to that on credit cards for bad credit.
- You can negotiate better terms if you have a good credit score or another source of income, such as Social Security or child support payments.
First Things First: What to Do When You Find Yourself Unemployed
Before we start talking about loans for unemployment in particular, let's take a look at some steps everyone should take when they've just lost their jobs. Suddenly being unemployed can leave you feeling lost, so having a game plan you can easily follow will help to keep you on the right track.
- File for unemployment benefits as soon as possible. Each state has its own procedures and eligibility requirements, but you will typically have to wait several weeks for your claim to be processed.
- Balance your budget. You will probably have to do without some luxuries, at least in the short term. The sooner you make these cuts, the better off you'll be.
- Call your creditors and explain the situation. Nobody likes to hear bad news, but informing them that you're unemployed and may need some time to come up with their money is not only good manners: they may be willing to cut you some slack.
- Prioritize your existing debt. Pay attention to which payments will affect your credit score the most if you miss them, and consider consolidating all the debt on your credit cards using a personal loan.
- Try to find another source of income. This may be easier said than done, but developing a lucrative side hustle can really save your bacon. In addition, any lender who offers loans for unemployed people likes to see money coming into your bank account from somewhere. They'll be willing to increase your maximum loan amount and offer you better interest rates.
- Check your credit score so you know where you stand and can rectify any errors in your credit history.
- Start looking for loans unemployed people can qualify for before you're under financial pressure. It's much easier to shop around for the best lender when you're not in a hurry.
- Polish up your résumé. The economy always goes up after it's gone down, and you'll want to position yourself to take good advantage of the rising tide. Phone former employers to see if they'll provide references, let people you've met professionally know that you're available, and keep a close eye on job advertisements. Bad times rarely last forever - if you need a loan for unemployment, it will only be a temporary measure.
Where Can I Get a Quick Loan With No Job?
Now we come to the nuts and bolts of the matter: how to find a lender that's willing to provide a loan to unemployed people (including those with bad credit). The first thing you need to understand is that traditional institutions like banks don't have many types of loans available for people who don't have a steady, easily verifiable source of money like salaried employment. This means that your options will be somewhat restricted.
Hundreds of innovative financial companies are, however, willing to look at alternative sources of regular income, including unemployment benefits, Social Security, and self-employed earnings. Most lenders will still use your credit score as a way to determine how likely you are to repay a loan on time. This means that the typical loan for the unemployed will generally cost you more money in the form of interest rates and fees if you have bad credit.
A few companies, however, actually specialize in emergency loans for unemployed people. These may take the form of personal loans, small cash advances, or even a line of credit secured by a vehicle you own. Some will lend you money even if you have a low credit score, but beware: some of these businesses are very close to being loan sharks. It's worth taking your time to ensure that you're dealing with a reliable lender - this, among other things, can cause your credit score to improve over time as long as you keep up with the loan payments.
Searching for Loans When You're Unemployed
Especially if you haven't dealt with personal loans before, finding the right lender when you're out of a job is a daunting prospect. Simply figuring out whether a particular lender offers loans for unemployed individuals can be a chore, and filling out an application for each personal loan business you come across will be very time-consuming.
There is a simpler alternative, though: simply enter a few personal details on the form you see to the right, like the loan amount you need and your ZIP code. DirectLoanTransfer works with a large network of lenders, many of which provide loans for the unemployed. With our help, you'll get a list of which cash advances and personal loans you may qualify for, making it easy to compare your various loan options and select the one that's best suited to your circumstances. Once you find the perfect loan, you'll be sent to the lender's website to complete your application and may receive the money as soon as the next business day.
The best part of this is that our assistance is totally free. If you do choose a lender through our website, they will send us a small commission, but this does not come out of your pocket. You shouldn't have to pay for help getting a loan while you're unemployed; if a website asks for your credit card details or demands that you pay a fee upfront, pass - it's probably a scam.
Read the Fine Print
DirectLoanTransfer is a referral company: we help connect borrowers and lenders, but we don't analyze your loan application, play a part in negotiating your loan terms, or lend out money ourselves. It's up to you to ensure that you understand exactly what your obligations under the loan contract will be, including:
- Do you make monthly payments over time, or are you expected to pay back the full loan amount in one installment?
- How much is the finance charge on the loan, i.e. how much does it cost to borrow money? This is usually stated as an APR percentage - the lower, the better.
- What will happen if you miss one or more payments? Can you restructure your debt, and how much will this cost?
Taking out any sort of loan is something you have to do with your eyes open. If anything seems unclear, keep asking for more information until you understand exactly what you're letting yourself in for.