Here are some of the best loans for the unemployed

According to statistics, more than 5.8 million American citizens are unemployed. The lack of jobs makes the rate of borrowing high. If you are unemployed and need some cash, you may need to get a loan to help you out. Getting a loan when unemployed is not impossible. Having a job is not a requirement for you to qualify for a loan. You should, however, be able to show that you have a form of income for you to be approved for a loan.

The types of income for the unemployed include welfare payments, social security, self-employment income, alimony payments, or unemployment payments. Before the lender approves you for a loan, you have to give them access to your account. They can request to see your bank statements for a certain period to verify that your source of income is valid. If you don’t have any of the income forms, it is possible to use a valuable asset such as expensive jewelry as collateral.

You have different options for borrowing money when unemployed. First, you can take a cash advance. As long as you are a frequent user of credit cards, you can use it to get an advance from an ATM. You cannot, however, use all credit cards for this purpose since some don’t allow cash advances. Look at the terms of your credit card agreement to verify if your card does.

If you can use your credit card to obtain a cash advance, try to find out the maximum amount that you can withdraw. Do not overlook crucial things such as knowing the fees charged on such transactions as well as the annual percentage rate. Beware cash advances are not cheap.

Do you own a vehicle? You can use it to obtain a car title loan for up to 50% of its value. Car title loans can also be expensive since they come with high-interest rates. You may have to pay back the loan within a short duration. Beware that failure to repay a car title loan puts your vehicle at risk of being repossessed. Ensure you have a plan on how you will make repayments before you apply for the loan.

It is possible to acquire a short term loan even when you don’t have a job. You can get a payday loan from The lender offers lenient eligibility requirements that can include welfare income or unemployment income. The terms of this loan can be a bit hard for some borrowers due to the short repayment periods and high-interest rates.

Alternatively, get a cosigner to help you secure a personal loan. If you have someone you trust that has good credit, you can ask them to cosign for a personal loan. This loan is more favorable since you can pay it within an extended duration and enjoy low-interest rates. It is easy to repay a personal loan within the required time even when you don’t have employment. Make efforts to repay the loan to avoid straining your relationship with a cosigner.

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