Traditionally, unemployed loans were very difficult to come by due to a limited number of loan types and stringent assessment guidelines.
Today, things are very different. Just because you’re not currently employed doesn’t mean that you can’t get access to emergency funds when you need them.
Whether you’re in between contracts, on welfare or have another source of income away from employment, there are hundreds of lenders on the market who are able to help.
Read on to learn more about suitable loans for unemployed people and steps you can take to get a great rate on your next line of credit.
What Can Unemployed Loans Be Used For?
No matter what type of unemployed loan you choose, you’ll be free to spend this on almost any personal expense, life emergency of financial shortfall that you’re faced with.
Some of the most common reasons that people take out unemployed loans include:
- Home improvements
- Car repairs or replacement travel
- Unexpected medical bills or household bills
- Replacing a lost income whilst between jobs
Although these are the more common reasons for using unemployed loans, there are no restrictions on what you can do with your funds once they have been deposited in your bank account.
What Unemployed Loans Are Available?
When it comes to applying for loans, no job is now no problem! The most common unemployed loans on the market follow the pattern of more traditional personal loans. You’ll be able to choose an amount of money you’d like to borrow and a repayment term over which you’ll have to make timely repayments.
A whole host of criteria away from your employment status will be taken into account to assess your circumstances, giving you a better chance than ever before of being accepted straight away.
Aside from these flexible personal loans for unemployed people, other options include both guarantor loans or borrowing from tribal lenders.
Guarantor loans are now one of the most popular loans for unemployed people with the main focus of the underwriting and your repayments placed on somebody you know with a good credit standing.
You’ll still need to show that you can repay your loan on time each month – at the end of the day, your guarantor isn’t taking the loan out on your behalf and is just there for backup to the lender in an emergency.
Tribal lenders operate under tribal sovereignty rather than state law giving them greater flexibility than other lenders when it comes to choosing their own eligibility criteria.
The main focus of any lender is to ensure that you can comfortably afford your repayments, so you’ll need to show that you’re able to meet these regular commitments.
What Is The Eligibility Criteria For Unemployed Loans?
Each lender brings their own unique set of qualifying criteria to the unemployed loans market, however, you’ll need to ensure that you fulfill some basic criteria to be eligible for any credit in the United States. These include:
- Being 18-21 years of age when you apply, depending on the state of residency
- Having an American checking account in your name with a valid debit card
- Being able to show that you can comfortably afford your repayments
Some loans may require you to provide additional documentation such as your Social Security information, bank statements or photo ID. Have these documents to hand when you apply to speed up the application process.
How Can I Apply For Unemployed Loans?
It takes just a few minutes to apply for unemployed loans online and the journey begins with your own personalised comparison.
Simply tell us a little more about your circumstances and the type of loan you’re looking for, and we’ll compare hundreds of loans on your behalf so you can compare the most competitive lenders that meet your needs.
Some of the factors you’ll want to take particular note of include:
- The maximum amount of credit available from each lender
- The term over which you’ll need to make your repayments
- How much each of your repayments will be (these can vary depending on the type of loan)
- The interest rates charged by each loan no job specialist
- The total amount repayable over the term of your loan
It’s also strongly recommended that you check your state residency eligibility for each loan before applying.
Once you’ve completed your application, you’ll receive an instant online decision. If accepted, you’ll need to sign and return an online credit agreement for your unemployed loans which will then be deposited straight into your checking account.
How Quickly Will I Receive My Unemployed Loan Deposit?
Typically lenders aim to transfer funds to you within 24 hours, however, it’s becoming more and more common for same-day payments to be offered as part of their service.
Some lenders do charge for this speedier payment, but if you’re faced with a financial emergency then this added extra can be a valuable resource.