Approximately 3.9 percent of Americans are currently unemployed. The unemployment rate is the lowest its been in a long time, but there are still plenty of people who are out of work.
If you’re part of this group, you might be wondering what kind of options are available to you to help you make ends meet. You may receive a welfare check each month, but that might not be enough to keep your head above water.
If you’re in this position right now, a loan might be your only option. Can you even get a loan with no job, though?
The short answer is yes, even if you also receive a welfare check. Though installment loans may be off the table, there are many other types which are not. Read on to learn what kinds of loans are available to you and how you can increase your chances of approval.
There are lots of different loan options available to people who are not working. The following are some of the most popular options:
Auto Title Loans
An auto title loan involves putting your vehicle up as collateral in exchange for a loan. If you default on the loan, the lender will repossess your vehicle.
If you own your car, you could benefit from an auto title loan. Auto title loans are a good option for folks with bad credit because they don’t require any kind of credit check.
Pawn Shop Loans
You can also look into pawn shop loans.
Pawn shop loans involve exchanging certain items for cash. The pawn shop holds on to the item and uses it as collateral. If you don’t repay the loan, they keep the item.
These loans don’t require a credit check, so they’re a good choice if you’re not working and have a lower-than-ideal credit score.
Payday loans are short-term, high-interest loans that are meant to tide you over for a brief period of time — usually 2-4 weeks. Payday loans often don’t require a credit check.
Many payday lenders will take a welfare check in exchange for a post-dated check, so you can still get the money you need even if you are not working.
There are also lenders out there who are willing to provide unemployed people with personal loans. These loans might have higher interest rates and shorter terms, but you might still qualify. Loans of this nature are called no credit check loans, and they are known to help bail out those who lack work. You may need to work with a loan-matching service to find a lender who’s willing to work with you.
Use Caution When Applying
As you can see, there are plenty of loan options available to you.
It’s important to exercise caution when you’re applying for these loans, though. There are a lot of predatory lenders out there looking to take advantage of folks who are out of work and desperate for cash.
Here are some tips that will help you find a good, credible lender who has your best interests in mind:
Think About Repayment
When you’re looking into taking out a loan — any kind of loan — you need to think about how you’re going to repay that loan.
Remember, you’re going to be responsible for paying the loan back (usually within 30 days of receiving the funds). Not repaying it will get you trapped in a vicious debt cycle.
Read Terms and Conditions
Before you agree to any kind of loan agreement, you need to read the terms and conditions carefully.
Figure out exactly when the loan needs to be repaid and what interest rate you’re paying on top of the principle of the loan. That way, there won’t be any surprises later.
Try for Personal Loans First
Personal loans, for most people, should be the first option to consider.
Even if they have higher-than-average interest rates, the interest will still likely be lower than other types of loans. You won’t have to worry about losing your car or another item, either.
Don’t Borrow More Than You Need
Be sure to only borrow what you need, too. Even if you qualify for a larger loan amount, that doesn’t necessarily mean that you should accept that amount if you don’t think you can pay it back.
Tips for Repaying Your Loan
Setting up a repayment plan for yourself is one of the first steps you need to take when you’re getting ready to take out a loan. Here are some tips that can help you to make sure you can repay your loan:
Stick to a Budget
If you’re receiving a monthly welfare check or have any other kind of income, create a budget to figure out how you’re going to meet your monthly expenses and repay your loan. Draw up a budget and stick to it, no matter what.
Start Submitting Resumes
If you’re able to work but have been struggling to find a job, it’s time to start sending out resumes again. You’ll never be able to pay your debts if you don’t have adequate income coming your way.
Remember, the average job search takes about six weeks. It may take some time to find a new job, so you should start looking right away.
Even if you can’t find a full-time position, that doesn’t mean you can start working.
For example, you might want to consider “side hustles” like driving for Uber or Lyft or dog sitting through Rover. These kinds of gigs can help you bring in additional income while you search for a more permanent job.
Just keep in mind that earning income from these gigs will impact your ability to qualify for unemployment or other benefits.
Get a Loan with No Job Today
If you’re out of work and need money to make ends meet, you can definitely get a personal loan with no job, whether you receive welfare or not.
The process might not be as easy as it would be if you were working, but it is possible. You just have to make sure you’re applying for the right loans.
If you need help applying for a loan, we’re here for you at Bonsai Finance.
Apply online for a loan today. We have lots of options available to you, many of which do not require any credit checks.
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