If you are unemployed, you may wonder if you can still get a loan. You can. You need to find lenders that work with people who do not have income but when you find them, you absolutely can get yourself the money you need.
In order to borrow the money, you need to show that you have some way to repay the loan. If you do not have income but you have savings or other income-earning assets you can show proof of owning, you can qualify. If you get welfare or Social Security payments, these are also viable forms of funds that you can use to repay what you borrow.
Many self-employed people are considered unemployed. While these people work very hard to earn money they do not get a traditional paycheck. When you apply for a loan for unemployed individuals, the lender usually wants to see your bank statements to show what money you have coming in as well as what your obligations are.
Before you apply for a loan as an unemployed individual, remember that you will need to repay it. Never borrow more than you need. Lenders will approve you more readily for a lower loan amount than a high amount if you cannot show a way that you will be able to maintain your payments.
Research lenders online. Simply enter loans for unemployed and your search will return you the links to several lenders in your area that lend to people without traditional income. Be careful to read all the eligibility requirements. You want to be sure you have a good chance of getting approved before applying.
If you get welfare payments as most of or a portion of your income, make certain that the lenders will consider this type of money as acceptable for repaying the loans. Some lenders like payday lenders do not need you to be employed to borrow the money but there are some that will not accept welfare or unemployment payments as viable funds
Be prepared to pay a high APR or annual percentage rate of interest. Most lenders with loose lending requirements have to charge more due to the high rate of defaults from other borrowers. If the APR is very high, you will want to consider borrowing money from another source such as a friend or relative.
One method for paying a little less can be signing up for automatic payments. Lenders will automatically debit your bank account for the monthly payment on a specified date. This convenience can save you money but it can also cost you in the event you forget to have enough money in the account on the day of the withdrawal.
That can cause expensive bank fees to be assessed to your account. If you are in need of a loan but you do not have a job, do not think that there is no hope for you to borrow money. There are plenty of reputable lenders that can get you the money you need.