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Loans for the Unemployed
11 Jun 2018

Loans for the Unemployed? They Do Exist and How to Get One

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The United States is in a great position are far as employment is concerned right now.

In April, the U.S. Bureau of Labor Statistics revealed that the unemployment rate had fallen to just 3.9 percent–and it’s expected to dip even lower in the coming months.

There are also many individual U.S. states with unemployment rates much lower than the national rate. Wisconsin (2.9 percent), North Dakota (2.6 percent), and Hawaii (2.1 percent) all achieved historically low unemployment numbers in March.

But despite this, it’s important for everyone to remember that there are still many people–millions and millions of people, in fact–who are struggling with unemployment. They can’t find work for one reason or another and are having trouble paying their bills.

If you fall into this category, loans for the unemployed are available and can help you! Here is how you can go about getting one.

Decide If You Really Need a Loan

If you’re unemployed and aren’t generating much income at the moment, you might feel like you don’t have any other option than to take out loans for the unemployed.

While these loans can prove to be very beneficial for you, you need to make sure that you exhaust all of your other options before you decide to take one out.

Have you filed for welfare or unemployment benefits? If not, you should do that first before you do anything else. That will automatically open up a stream of revenue for you and allow you to get the essentials you need to survive.

You should also consider borrowing money from a friend or family member before applying for a loan. By weighing all of your other options first, you can determine if taking out a loan is really in your best interest.

Figure Out How Much Money You Need to Borrow

Have you decided that you definitely want to apply for loans for the unemployed?

At this point, it will be time for you to think long and hard about how much money you want to try and borrow. You can come up with a number by making a list of the things you’re going to pay for with the money and then crunching the numbers to come up with a total.

It’s important for you to come up with a realistic number that you will be able to pay back in a short amount of time. Most bad credit personal loans guaranteed approval direct lenders won’t even bother with those who come to them with outlandish numbers that look like they’ll be too high for people to repay.

Your list might look something like this:

  • Rent: $500
  • Groceries: $50
  • Car payment: $125
  • Gas: $40
  • Electricity bill: $60

In this case, you need about $775 to pay off your bills. Applying for that amount rather than arbitrarily applying for a $2,000 loan will show lenders that you’re committed to only borrowing what you believe you can pay back.

It will go a long way towards getting you the emergency loans for the unemployed that you desire.

Find Lenders Who Offer Loans for the Unemployed

There are many lenders who will not, under any circumstances, lend money to those who do not have steady jobs.

However, there are also plenty of lenders out there who are more than willing to extend loans to unemployed people and others who might be working their way through dire situations. If you have a credit score that was hit in the past due to some late bills, for example, you can focus on bad credit loans providers, as they will be most likely to provide you a loan.

You should sit down and put together a list of lenders that you find that extend loan offers to unemployed people. You should also research these lenders to see what you can find out about them. One key piece of information is your credit score, and the credit score the lenders are willing to lend to. As this is a key factor, you may want to check with a free service like Credit Sesame to see what your credit score is.

The internet has made it possible to check out online reviews for just about any business. You can do just that with lenders and generate a list of companies that have received favorable reviews from those who have worked with them in the past.

Consider How You Will Pay Back the Loan

Once you have come up with a list of lenders that offer loans for the unemployed, it will almost be time for you to start applying for loans.

But before you do that, you should figure out how you plan to pay back the loan you want to get. This is something lenders are likely going to ask you, so it’s a good idea to take the time to consider it yourself.

If you’re currently on welfare or receiving unemployment benefits, that might be one way that you can pay back the loan you’re applying for. You also might be able to pay it back with deposits from investments.

Those who are self-employed also have the option of using the funds they receive from clients to pay off emergency loans with no job.

No matter how you plan on paying back your loan, you should have a plan in place. You should also be ready to explain to lenders why they should take a chance on you.

Be Prepared to Prove You Receive Income of Some Kind

If you have some kind of income coming in at the moment–whether it be from a part-time job or an investment you made–you are going to need to be able to prove it.

Lenders that offer loans to those without jobs will usually demand to see a lot of financial paperwork to prove that they’re going to be able to recoup their money at the end of the loan.

You might have to show:

  • Bank statements
  • Pay stubs
  • Welfare or unemployment checks
  • Investment documents
  • Job application letters

Each lender is a little bit different and will ask to see something different to prove that you’re going to be able to pay back a loan.

No matter what they ask you for, you should be prepared to provide it to them. It could be the difference between getting a loan and being told that you have been denied.

Apply for Loans for the Unemployed

After you have weighed your options, researched lenders, and thought about how you’re going to repay a loan if you get it, it will be time to actually start the application process.

You can fill out most loan applications right online through the websites of various lenders. They will usually ask for your name, address, social security number, and other identifying information about you.

Lenders will also ask you to state how much money you want to borrow and ask you how you plan to pay it back.

Additionally, lenders will ask you for proof of some kind of income at this point and let you know what forms of income are necessary. You may have to email documents to them or find a fax machine to send them if email isn’t an option.

It’s important for you to go through each application and fill it out as openly and honestly as possible. Lenders are going to do plenty of digging around on you, and the last thing you want is for them to find that you haven’t been honest in your application.

Once you send out applications to your list of lenders, all you can do is sit back and wait. Lenders will either send you offers or deny your application.

Understand If Some Lenders Don’t Accept Your Application

Rejection is something you’re going to have to learn to live with when applying for loans for the unemployed. (take a look to our article about allotment loans for federal government employees)

There are quite a few lenders out there that won’t accept your application or make you an offer. Don’t let it get you down!

You should try and understand that some lenders simply aren’t going to take a risk on you. It should make you more appreciative of those companies that do want to work with you and provide you with the money you need.

Check Out the Loans Offered to You

Hopefully, you will find at least one or two lenders that will want to make you a loan offer.

Some lenders will send you an acceptance letter via email, while others will reach out to you by phone to let you know that they would like to lend you money.

Either way, you should wait a couple days to see which companies will lend you money and then make a list of the companies that want to do business with you.

You should write down how much money each company is willing to give you, the terms attached to the loans, and the suggested repayment periods.

You might want to go back one more time and check out more about each lender on your list. If there’s one with a great reputation, it’s a good idea to move it up on your list.

By the same token, if there’s a company that seems to have a shady past that is all too willing to send you money right away, you should be a little bit skeptical. This is a big decision to make, and you don’t want to rush into it!

Pick Out the Loan With the Most Favorable Terms

One of the toughest parts about loans for the unemployed is that they sometimes come with unfavorable rates for borrowers.

The annual percentage rates attached to them are often high, and there are also usually fees that are tacked on. This can ultimately make it difficult for people to pay off their loans once they have received them. If you applied for no credit check loans, as an example, you might see higher interest rates than with more traditional loans.

As part of the loan process, you should take a look at all of the terms that come with the loans you have been approved for and consider them carefully.

Will they allow you to pay off a loan quickly?

Will they end up putting you deeper into debt by making it impossible to pay off a loan?

Will they put you in an even worse spot next month when your next batch of bills shows up?

It can take a lot of work on your part, but it’s your job to weigh each loan and find the terms that will work best for you. Ideally, you want a low APR and minimal fees, if possible.

It’s not always easy to find great terms on loans for the unemployed, but they do exist! You just have to do your homework and be willing to push companies to give you the most favorable terms.

Accept the Loan That Works Best for You

After you have looked at all the terms attached to loans, you should go ahead and pick the one that’s best for you.

Accepting a loan is one of the simplest parts of the process.

You will be sent some kind of contract promising to pay back the loan. You will be asked to sign it and to let the lender know where to deposit your money.

You can usually access the money pretty quickly and use it for whatever you need right away.

Work on Paying Your Loan Back As Quickly as Possible

At the end of all of this, you will have the money that you need. You will be able to pay your rent, buy groceries, or do whatever else it is that you need to do with the money.

Once that’s done, it will be up to you to work as hard as you can to pay off your loan as quickly as possible. Since there are typically high interest rates, you won’t want to miss a single payment. It could end up costing you dearly in the end.

If you’ve made the proper preparations and considered all of your options, you should be in good shape. You will have the loan paid off in no time and will show your lender that it was worth them taking a chance on you.

Start Searching for Loans for the Unemployed Now

Would loans for the unemployed help you get back on your feet? It might not necessarily be as difficult for you to get one as you might think.

As long as you have at least a little bit of income coming in, there are lots of lenders who will set you up with the loan you need. Even if you have bad credit, it’s still possible to get personal loans.

Read our blog to find out about all of the loans that are available to those who have fallen on hard times.