You need cash but you lost your job? Don’t worry, there are a lot of lending companies offering emergency loans for unemployed out there. It’s just about the one that fits your personal preference, particularly, your ability to repay.
Let’s face it, sometimes we are put in unexpected situations in life like losing a job. When you thought everything’s fine, suddenly, things happen, and the next thing you know, you’re out.
One perfect example if the current pandemic the world is facing. A lot of businesses are shutting down because they can no longer afford to operate, which means people losing their jobs and left hanging — not knowing yet where to find a new job, or if they could ever find one based on their skills.
According to the Bureau of Labor Statistics (BLS) of the United States Department of Labor, the unemployment rate increased in 29 states and the District of Columbia in March 2020. Yes, that was the peak of the effect of the current pandemic in the country.
On a national level, BLS reports that the unemployment rate rose from 3.5 percent in February to 4.4 percent in March.
Furthermore, according to the BLS report, among all the states, the largest unemployment rate in March was in Nevada (+2.7 percentage points) and Colorado (+2.0 points). In addition, the report says that the “rates rose over the month by at least a full percentage point in 19 other states. Alaska had the largest jobless rate decrease from February (−0.2 percentage point).”
However, the good thing is, as of June 2020, the numbers are slowly going down. According to the most recent report by BLS, the unemployment rate declined to 11.1 percent. This was believed to be caused by the resumption of economic activity that had been abridged in the months of March and April because of the coronavirus (COVID-19) pandemic.
Though the unemployment rate is decreasing, the fact remains that there still are people who lost jobs – unexpectedly. Some, if not most of them were not prepared and have no savings at all to help them get through until they find a new job.
Are you one of them?
If you are, here’s a little good news for you. There are companies that offer emergency loans for unemployed. Yes, even if you do not have a job yet, you can loan some cash to help you and your family get through the difficult times. In fact, we are sharing with you some of them so you could check them out.
But first, here is some important information we thought you might be interested rather you need to know before heading to any lending company to apply for an emergency loan:
- What do lenders look for?
- How to qualify for an emergency loan for unemployed?
- What to consider before getting a loan while unemployed?
WHAT DO LENDERS LOOK FOR?
As mentioned earlier, even if you are currently unemployed, there are lending companies that offer emergency loans to people like you.
However, your approval will depend on how you can prove to the lender that you can repay the loan. Of course, at the end of the day, the money is lent and not given for free.
Thus, it is only safe that some, if not most lenders will look into the following details:
- Credit Score
- Strong Credit History
- Regular Income
Let’s discuss each item further —
Similar to any type of loan, lenders set a minimum credit score requirement when it comes to emergency loans for unemployed.
The best loan offers, of course, go to borrowers with a high or excellent credit score. Meanwhile, borrowers with less-attractive or poor credit score may still have a chance, but expect to be charged a higher interest rate.
If you are not that familiar with how one comes with a good credit score, well, credit scores are calculated using data from the borrower’s credit reports, which means, if your credit history is not tarnished, then most likely you’ll have a good credit score.
To be sure, before applying for an emergency loan, make sure to take a look at your credit score first. Make sure it’s good enough to get approval from lenders.
Strong Credit History
To be able to have a strong credit history, a borrower must have a pattern of timely payments on his or her credit report, as well as few or no late or missed payments, and that he or she can assure lending companies that he or she knows how to properly manage the debt responsibly.
Generally speaking, lending companies prefer borrowers with credit reports that have no negative events like foreclosures or bankruptcy.
Surely, you are unemployed. However, there are other ways where you can get regular income from. It could be a side hustle or a business. Whatever your source of income is, lenders will take that into consideration to give them the confidence to approve your loan.
Of course, lenders need to make sure that you have the capacity to pay off the loan. They will look into how reliable and how sufficient your income is to cover your monthly expenses, plus your monthly loan payments.
HOW TO QUALIFY FOR AN EMERGENCY LOAN FOR UNEMPLOYED?
Since you are currently unemployed that means you may not have proof of employment. In this case, the lending company will look into your financial records to verify your other sources of income.
While unemployment benefits can represent a portion of your income, realistically speaking, they are temporary in nature, which means you should not rely on them alone.
With that said, some lenders may consider looking into other forms of income like:
- Alimony or child support
- Disability income
- Income from your spouse or partner (if the spouse is a cosigner on the loan)
- Government annuity payments
- Pension funds or other retirement benefit payments
- Public assistance
- Regular proceeds from a trust
- Recurring interest or dividend payments
- Rental property income
- Social Security benefit payments
- Veterans Affairs benefits
Apart from providing proof of income, a borrower may also qualify for emergency loans for unemployed individuals by showing evidence that he or she has access to a significant supply of funds like as follows:
- A pending employment offer or contract for freelance work
- An upcoming inheritance
- The pending sale of securities, real estate, or other investment property
Again, to be sure, always ask the lending company you are eyeing for as every lender has different sets of requirements. Better to ask first to avoid wasting time and effort, right?
WHAT TO CONSIDER BEFORE GETTING A LOAN WHILE UNEMPLOYED?
So, now you already know what lending companies look for from an emergency loan applicant, as well as how you can qualify for a loan. This time around, we are going to share with some of the things you, the borrower, has to consider before applying for an emergency loan while unemployed.
All these actually apply to anyone who is looking into borrowing money – whether you are employed or unemployed. So, here they are –
- Your ability to pay off the loan. First and foremost, be honest with yourself. Make sure you have the capacity to pay off the loan. Otherwise, you are just putting yourself in a serious problem in the future.
- The amount of money you will borrow. Make sure to borrow only what you need. Do not over-borrow money just because you want lots of cash on hand. Again, it’s about being responsible and knowing your limits.
- The rates and terms. These two are very important. Make sure to look into it before signing any loan offer. This, in fact, has to be one of the major bases of your decision. You have to make sure the rates and terms are on point to what you can afford.
- Your co-signer. Some lending companies may require or allow a co-signer especially for emergency loans for unemployed. If that is the case, you have to have someone in mind – if married, your spouse automatically becomes your co-signer (provided he/she has a good credit score). If single, it could be your parents, siblings, or friends. Regardless of who your co-signer is, he or she has to have good or excellent credit scores.
WHERE TO APPLY FOR EMERGENCY LOANS FOR UNEMPLOYED?
So, we’ve arrived at the most important thing – where to apply for an emergency loan?
Before heading on to our list, though, here’s one from Loans for All. Here you will find some of the loan options for unemployed. Check the video out by clicking the play button below:
As we have said earlier, there are a lot of options out there. But of course, of all the options, there will always be a few good ones, right?
Having said that, here are some of the lending companies that provide the best emergency loans for unemployed:
- Bad Credit Loans
|BANK||INTEREST RATES||LOAN AMOUNT RANGE|
|LendUp||Varies depending on the state||$100-$300|
|Bad Credit Loans||4.99% to 35.99% depending on the lender||$500-$5,000|
|CashUSA.com||5.99% to 35.99% interest rate depending on the lender||$500-$10,000|
|Credible||Starts at 4.99%.||$1,000-$100,000|
|PersonalLoans.com||5.99% to 35.99%.||$1,000-$35,000|
Founded in 2012, LendUp is a smart alternative to payday loans. It helps consumers break the cycle of sky-high-interest loans.
Through the company’s dynamic personal loans and unique “points” system, LendUp boasts of helping their customers save more than $200 million in interest and fees, at the same time, improving their way of living.
Unlike most lending companies, LendUp is one of the few that focuses on providing personal loans to borrowers with poor credit. Thus, making it an ideal choice for unemployed individuals with not so pleasing credit record.
Furthermore, LendUp is also an ideal choice if you need money as soon as possible. Once approved, the company disburses funds as soon as the next business day.
By the way, loan application may be done 24/7 through its website. The decision is also provided instantly.
When it comes to interest rates, it varies depending on where the borrower is from. However, 664.04% for a 14-day term is common.
Meanwhile, loan amounts range from $100-$300. LendUp may charge borrowers with a CAB fee, which amounts to $25 per $100 for single payment loans. The fee is rolled into the total loan amount taken out.
BAD CREDIT LOANS
As the name implies, Bad Credit Loans is designed to be an online source for people who have bad credit. The company provides various types of loans, which include personal loans, business loans, auto loans, as well as student loans, mortgages, and debt consolidation loans.
Bad Credit Loans does have an easy and simple application process. All you need to do is go online and visit the company website.
What’s particularly nice about Bad Credit Loans is that it allows borrowers to apply to multiple lenders using a single application.
Since it caters to people with bad credit, obviously, it does not require a minimum credit score. However, it is important to note that each lender determines its own interest rate for loans. Don’t worry though as you will be given time to review the rates and terms before signing any paperwork.
While every lender determined the rate, Bad Credit Loans states that interest rates may range from as low as 4.99% up to 35.99%. Loan amounts range from at least $500 up to $5,000.
Though Bad Credit Loans is free to use, some lenders may charge a fee in your loan terms.
Headquartered in Las Vegas, Nevada, CashUSA.com is an online marketplace for lending companies.
As stated on its website, CashUSA.com is “one of America’s most trusted resources for cash loans”. The company uses a large network of reliable lenders from which borrowers can submit a request for a personal loan or emergency loan.
Since it is an all-online, customers may submit a request for a personal loan through its website and expect a response soonest.
Once a lender approves a loan request, and all paperwork is done, the funds are immediately disbursed in as soon as the next business day.
CashUSA.com is another ideal platform for borrowers with bad credit history. More so, it is ideal for unemployed people as it only requires borrowers to show at least $1,000 of monthly income from other sources of funds.
Don’t worry as the amount does not have to be an employment paycheck, which means it could be from a side hustle, a business, or any other legit forms of fund sources.
Just like the previous one, what CashUSA.com does is it matches borrowers to its network of lenders.
With CashUSA.com, people can borrow as low as $500 up to as much as $10,000. Loan terms available range from 3 up to 72 months at 5.99% to 35.99% interest rate depending on the lender.
The funds you borrow from the CashUSA.com network of lenders may be used for almost any purpose.
Credible promises to “bring simplicity, choice, and unbiased support to all of life’s important financial decisions”.
The company allows customers to compare customized loan offers from various vetted lenders, giving its customers the power as well as the confidence to improve their financial future.
At Credible, you can enjoy using its services for free, compare options without having to worry about your credit score, shop with confidence knowing the information you share will not be shared without your permission, and that while it’s online, and it uses encryption and SSL technology to keep all data safe and secured.
To apply for a loan, all you need to do is fill in the application online on the Credible website. Once done with the application process, you will then be given various loan options based on the information you shared.
Credible provides up to 13 different lenders to choose from — all are tailored to your needs.
When it comes to the interest rate, it varies from one lender to another. However, it usually starts at 4.99%.
Meanwhile, loan amounts can go as low as $1,000 up to as high as $100,000. Thus, making Credible an ideal choice for those who need a large amount of money. But again, this depends on the lender.
Furthermore, credit score requirements will also depend on the lender.
Credible is free for anyone to use, however, just like other marketplaces, lenders may charge their own fees.
In terms of fees like origination or application fees, most of Credible’s partner does not charge these fees.
Based on its website, PersonalLoans.com “provides an easy and convenient way for consumers to be connected with a personal loan through its network of lenders and lending partners.”
Since it is an online lending service company, customers are assured of an easy, convenient, and simple process.
Through Personalloans.com, you can be connected to its large lender network. Needless to say, the online company is available for customers across all 50 states.
PersonalLoans.com is ideal for borrowers who need to borrow a larger amount of money. You can borrow money from as low as $1,000 up to $35,000.
To qualify, especially for unemployed borrowers, you will need to show at least $2,000 gross income from other sources of funds. Once your loan application is approved, you can receive funding for as soon as one business day.
Just like CashUSA, PersonalLoans.com accepts all credit types. It also offers installment payments from 3 up to 72 months.
Meanwhile, interest rates vary from as low as 5.99% up to 35.99%.
FINAL THOUGHTS ON EMERGENCY LOANS FOR UNEMPLOYED
Times may be difficult for some especially those who lose their jobs, whether it be because of the pandemic or something else, the good thing is, there are other means to be able to make ends meet while you are looking for a new job, a new source of living.
Through companies and marketplaces that offer options on emergency loans for unemployed, people can at least have that sense of hope.
Are you looking for a lending company to apply for an emergency loan?