Personal loans may be easy to obtain for people with a secured job even if their credit is less than stellar. What if you are not currently employed and need instant funds to manage your finances? Typically, lenders are not willing to consider loan applications from unemployed borrowers. But there may be some way around to attract the attention of a lender.
Are you an unemployed student?
Providers of student loans, typically, do not require borrowers to be working and earning. While the government-sponsored loans are almost guaranteed and come with low interest rates and flexible terms, they might not be sufficient for a college going student pursuing higher education. A private student loan, on the other hand, can prove costly because of higher interest rate and less flexible terms. Most of these student loan types allow payment deferment until you begin to earn on a regular basis.
Are you an unemployed veteran?
Many banks and financial institutions have put in place special loan products for unemployed veterans. Several government programs catering to the emergency financial needs of veterans also exist. You may take advantage of these programs if you meet the qualification standards.
Are you an unemployed mother?
Special loan programs for unemployed single parents are not uncommon, but they generally lack the flexibility of a typical personal loan. You need to have a good credit and a good relation with your bank. Small dollar loans, usually between $2,000 and $5,000, may be easy to qualify and get approved.
Are you an unemployed person with a very good credit?
The key to getting approved for a personal loan, quick and fast, is exceptional credit. There are many lenders who may be just satisfied with your credit score and never ask about whether you are employed or not.
What if you are an unemployed person with a bad credit?
Frankly speaking, there are not too many options if you are unemployed with a credit score below 580. You may try an alternative to personal loan, such as the following, or check eligibility at certain online lenders and bad credit lenders.
- Use the overdraft facility: Though it may be costly, it can help you in times of need. You can use the overdraft facility of your bank to get extra funds at a fee.
- Put collateral for secured loans: If you have something of value to put as collateral, you may be able to apply for a secured personal loan and get approved for it quite quickly.
- Borrow against saved fund: If you don’t have something of value, but have deposits or cash reserves that can’t be easily liquidated, you may be able to borrow against the same.
- Improve your credit score first: If you can defer the need of an immediate loan, you may be able to work towards an improvement of your credit score. You can then apply for a unsecured personal loan at low rate.
- Try a part-time job: To meet your emergency financial needs, you may try a part-time job. This will definitely be a better thing than a personal loan.
- Apply at certain lenders: Certain types of lenders, such as peer-to-peer lenders and online lenders and bad credit lenders might accept your loan application, although with some unpleasant conditions. Try applying at LendUp, Rise, Vouch, NetCredit and Peerform.