Are you in a financial emergency? Have you recently lost your job and need to borrow money? If so, you may be looking for an unemployment loan. Unfortunately, most lenders require that the borrower have steady income from a source such as unemployment benefits or seasonal work. Unless you're a season worker, unemployment benefits generally don't count because they can only offer up to 26 weeks of help before they are gone.
Qualifying for a personal loan can be tough when you’re unemployed. This is because creditors will want to see that you have the ability to repay the loan, which means having a stable income and assets. However, there are still ways in which you may qualify for an unsecured or secured loan with poor credit.
Unemployed borrowers may qualify if they have a co-signer or down payment as collateral, especially in cases where credit scores are low due to unemployment. Unemployed individuals without these resources should explore options like debt consolidation before considering taking out a loan with high interest rates that could lead them into more financial trouble.
The first thing to consider when you’re unemployed and looking for a loan is whether or not you qualify. The most common qualification requirement of any personal loan will be that you have steady income coming in, usually from employment wages. But if your jobless period has been less than six months long (and it was through no fault of your own), you’ll likely qualify for a personal loan.
The next thing to consider if you want to get a personal loan while unemployed is the type of credit you should take out. There are two broad categories: secured and unsecured loans. Secured loans require collateral before they can be approved, which means that your car or home might need to act as an ingredient in making sure that the lender gets repaid on time. But because there’s less risk involved with these types of lending options, interest rates may be lower than other forms of unsecured loans. Unsecured finance options will still allow for borrowing without putting up anything but their income history; however, this requires full repayment by monthly installments over time