Loans options for Unemployed Peopleby James Smith MARKETING INFLUENCER
What are your options when you find yourself out of work and need emergency cash? The best option is to get a short term loan. If you have bad credit, getting an emergency loan can be difficult (and costly). Here we will discuss the different types of loans available for people who are unemployed.
-Let’s explore what types of loans are available for unemployed people
-What to expect from a lender
-Pros and cons of each loan type.
-How much does it cost?
-Where are the best places to apply for these loans?
When you lose your job, there’s nothing scarier than not being able to pay your bills on time and having no way of determining when you will be paid again. This can become an even bigger problem if you need emergency cash but don’t have any collateral or means of repaying the loan quickly with interest. Luckily, people who find themselves in this situation still have many options available to them - few as they may seem at first glance! Let's explore what types of loans are available for unemployed people:
Pay Day Loans: Payday loans are for people who need emergency cash and are paid back from paycheck to Paycheck. These loans are very popular because they can be approved in just hours after the application is submitted and have few fees associated with them.
Emergency Cash for Unemployment and Low Income People: In some cases, unemployed people or low-income earners may qualify for a short term loan to cover expenses in the interim. These loans can be paid back with as little as $100 down if necessary -even though they are not typically as fast acting as payday lenders. They also carry higher interest rates than other types of loans but still allow you access to funds quickly when needed most.
Installment Loans: An installment loan is a long term option for those who need emergency cash, but may not qualify for a payday loan due to fluctuating income or credit score. This type of loan allows you to repay your balance over time, typically 12-120 months (or one year - five years).
Credit Cards: Though this seems like an obvious choice when looking at short term loans options available for unemployed people, it's worth noting that credit cards should only be used as last resort since they come with high interest rates and late charges going into default unless paid off each month which means you will go into debt very soon.
Personal Loans: Personal loans are loans which are backed by your personal assets, and typically allow you to borrow up to $50,000. Personal loans are long term loans which can be paid back over a fixed number of months- for example 12 monthly payments or 30 quarterly installments (or one year - three years).
Must have a verifiable source of income.
This can include current employment, unemployment benefits, disability insurance or other sources of monthly income that are regular and reliable. Lender may require proof of eligibility (such as copies of pay stubs).
Must be at least 18 years old with an active checking account in good standing for more than 90 days prior to submitting application; must not currently owe any money to the lender on another loan product.
In addition, the applicant must provide personal information including their name, address, phone number(s), date of birth and social security number plus documentation verifying identity such as driver's license/state ID card or passport. And finally they will need one form from either Employer/self employed income statement
Created on Jan 11th 2022 03:26. Viewed 190 times.