Where can you find emergency money if you are unemployed?
The unemployment rate in the US is falling steadily. Even so, more Americans are struggling financially. Those who have good jobs and decent credit can qualify for a personal loan from traditional financial institutions. But what do you do when you’re one of millions of unemployed? If that sounds relatable and you need cash now, there are immediate options. You have the chance to qualify for certain loans even if the credit bureau is bad.
Credit options for the unemployed
If nothing works, you still have a few workarounds:
- Secured Personal Loans. Collateral guarantees your lender that they can get their money back even if you stop making your monthly payments. When considering this type of loan, keep in mind that failure to pay off your debt will result in you losing the collateral.
- home loan. If you own real estate, this type of loan helps you borrow money based on the value of your home.
- payday loan. These short-term advances help you to come up with small emergency money requirements. Most people qualify with no problem. These loans are quick and could help you until you get your next paycheck.
- installment loans. Online lenders also offer multi-month loan products. Aside from the term of the loan, the amount available can be as high as $5,000.
- cash advances. Credit card holders can receive a small cash advance. You must be aware that these loans come with high interest rates.
- lines of credit. Borrowers who qualify for a personal line of credit can access credit through their credit cards. If you do manage to get such a loan, your payment will usually fluctuate from one month to the next.
- pawn shop. Another alternative to traditional loans, borrowing from a pawn shop is fast. It involves using a valuable object as collateral. The risk here is losing the asset you are using as a guarantee. Your creditworthiness is not relevant in this context.
Where the unemployed can apply for a loan
You can apply for a loan from a bank, credit union, or direct lender. The first two options are more traditional, while payday deals belong to alternative loans. Below are some typical examples.
Rental products: home loans, student loans, business loans, infrastructure loans, grants;
Amounts: vary according to information provided by the borrower;
Effective interest rate: from 1.59%;
Benefits: Repayment periods of up to 180 months, wide range of products and services, financial education resources.
1First Cash Advance
Rental products: Payday loans for bad credit, vacation loans, installment loans, emergency loans.
Amounts: from $100 to $5,000;
Effective interest rate: From 200 %;
Benefits: Complete online application form, financial literacy resources, no harsh credit checks, just fill out one application and get quotes from many trusted lenders, 24/7 support.
Rental products: auto loans, personal loans, mortgage loans, student loans, home equity loans;
Amounts: from $500 to $20,000 and up;
Effective interest rate: from 3.48%;
Benefits: Loyalty programs, digital banking, financial advice, no prepayment penalties
Rental products: consumer loans, student loan refinancing, personal student loans;
Amounts: from $5,000;
Effective interest rate: from 2.45%;
Benefits: personalized services, comprehensive support, secure customer reports, mobile operation.
Rental products: home equity loans, credit card loans, car loans, student loans, personal loans, debt consolidation;
Amounts: $1,000 or less;
Effective interest rate: from 3.24%;
Benefits: Online banking, federally insured, secure connection, 24/7 support.
The three factors that affect your qualification
When applying for a payday loan, there are three main elements that directly affect your chances of approval:
- your income. A direct lender will carefully examine your source of income and examine your debt-to-income ratio. You will estimate if you can repay them based on your monthly resources. If you don’t have a traditional job, alternative sources of income may work with some lenders. These include unemployment benefits, child support or alimony, investments, your spouse’s income.
- your credit history. Bad credit usually won’t stop direct lenders from accepting your application. In addition, many lenders do not advertise credit checks at all. Nonetheless, good credit is to your advantage. First, it shows that you are a responsible borrower. Second, a fair score can help you get lower interest rates.
- Your legal residence. Emergency loan terms vary by state. For example, states like Mississippi, Nebraska, and Missouri limit the loan amount to $500. Other states cap the APR or change the typical 30-day term for a cash advance. Consequently, the offer you get from lenders also depends on government regulations.
Even if you are unemployed, you can still qualify for a loan. There are several ways for you to get an emergency loan. Some lenders, such as B. Payday loan providers and pawnbrokers will not pay much attention to your creditworthiness. Before you jump into debt, though, do some quick research and compare your options. Consider your income and where you live to assess your chances. And most importantly, pay off your loans on time.