You may be wondering if you can get a personal loan when you're unemployed. The answer is yes, you can apply for a personal loan even if you don't have a job. However, you will need to provide some type of income, such as welfare, disability or unemployment benefits, backed by bank statements, investment statements, or other documents showing sources of income. Each interested direct lender will contact you and invite you to complete your loan application.
These requests ask about your monthly income, including your source. If your income meets or exceeds the lender's minimum requirement, you may qualify for a loan. All of the loan matching services state that you must provide some proof of income to get a loan. This could be a pay slip, a series of canceled benefit checks, or proof of income from regular annuities or pensions.
If you can't provide any proof of income, you'll have to look for an alternative loan source. Secured loans generally don't require you to provide proof of income as they require a guarantee to get the loan. Having a bad credit history shouldn't prevent you from getting approved for a loan, even if you're out of work right now. Some lenders may offer higher interest rates to unemployed personal loan borrowers because of the perceived additional risks of lending to someone who is unemployed. It's important to look around and determine which personal loan, if any, is best for you. The biggest benefit of getting a personal loan when you're unemployed is that it compensates for the loss of your salary.
Loans offered through the MoneyMutual network generally require you to pay them before the next paycheck, so you must provide that date when applying for a loan like this. If the current financial situation or a change of job has required a move, a personal loan can be a way to pay for those unexpected costs without relying on credit cards. If you have a savings or brokerage account, you may be able to pledge the account as collateral for a personal loan. So, if you're wondering how to get a loan without work, you might want to think about whether your alternative sources of income can support repaying a loan. Getting approved for a personal loan when you're unemployed can be difficult, expensive and risky. Select spoke with financial wellness educator Danetha Doe to discuss what you need to know about getting a personal loan if you're unemployed. Like a mortgage or student loan, a personal loan is when a lending institution pays a lump sum of money to a borrower who then returns the amount owed plus interest over a predetermined period of time. Bad Credit Loans has been providing loans since 1998 and does not charge for its matching service.
Here are some questions to ask yourself or a qualified financial expert before you apply for a personal loan while unemployed:
- Do I have any alternative sources of income?
- What are the interest rates?
- Do I need collateral?
- What are the repayment terms?
- What documents do I need to provide?
