No one wants to be in the position of being unemployed. Any serious minded individual who wants to be relevant to the society and also wants to achieve set goals he or she desires will want to have gainful employment. If wishes were horses, even beggars would ride. The truth is not everyone is employed and it is a hard reality that so many people face today.
As a matter of fact, as at December 2017 according to the Bureau of Labor Statistics and Eurostat, 4.1 percent of the population of the United States of America were unemployed though it fell to 3.9 percent in April 2018. Hence, even in one of the world’s foremost country in terms of economic growth and development, unemployment has still found a way to rear its ugly head.
How can you get a cash loan today while being unemployed?
The truth of the matter is that one still has to survive in spite of the reality of unemployment. One needs to get credit one way or the other without having to engage in illegal things which will dent the integrity of the individual when found out or defile the conscience of such individual even when not discovered by security agencies.
All hope is not lost for an individual who is unemployed whether the unemployment is cyclical, structural or frictional. It is not the end of the world for an individual who is seeking to be granted a cash loan in spite of being unemployed or having no bank account. The only issue which is not really news is the fact that in comparison with people who are employed, it is more difficult.
There are restrictions and factors that determine if an individual who is unemployed will get a personal loan or not but the most important factor is the discretion of the borrower. It is the borrower’s decision to either approve the loan or not that is the most important factor in deciding if an unemployed individual seeking a loan will receive approval or not.
I need money today but I’m unemployed – borrower’s Discretion
Hence, the individual who wants to get credit or loan faces a not so easy task, however, it is not a hopeless situation. It is, however, important to note that getting a loan from a borrower when not employed is strictly at the discretion and benevolence of the borrower.
Most lenders love to lend to people who they perceive as credible- people with high credit scores and employed. This is because they often feel that there is a high probability of getting their money back from such individuals unlike from people with low credit scores or who are unemployed. They are often more cautious when lending to such individuals and their fears is quite understandable.
Leslie Tayne, who is one of the best hands around when it comes to financing and debt matters said the likelihood that an unemployed borrower to be granted loan is slim. She reiterated that not have a stable source of income makes the lenders apprehensive to grant loans to such individuals.
Qualifying for a short-term loan with alternate income?
| Provider | Conditions | |
|---|---|---|
| Cash Central | Proof of income. Vary by state. | |
| CashNetUSA | Proof of income. Vary by state. | |
| ACE Cash Express | Proof of income. Vary by state. | |
| LendUp | Proof of income. Vary by state. | |
| Check into Cash | Proof of income. Vary by state. |
What loans are available for an unemployed individuals?
In spite of the fact that it is not easy for someone who is unemployed to be granted personal loan by creditors, it is not an end of the world situation as some people usually makes it sound. As an unemployed individual, there are still some loans that you are entitled to. They are:
Secured loans
One of such format of personal loan that is available to an individual who is unemployed and intends to seek approval for a loan is a secured personal loan. The key thing about secured personal loans, however, is that they are ensured by making available as a collateral some things such as car titles, work paycheck, or even home equity.
Worthy of mention is the fact that the value of the collateral goes a long way in determining the magnitude or proportion of the personal loan that will be made available for the individual who wants to borrow to take advantage of.
It is not very likely at least in most cases for a creditor to loan a significant sum of money if the borrower is incapable of making available a worthwhile piece of collateral that at least kind of measures up to the amount of loan required by the borrower. It is not for any other sophisticated reason as such but simply because a collateral serves a very significant purpose of security for money.
You must however not forget that the creditor will automatically become the authorized owner of the collateral in the event that you were eventually unable to pay back the loan you have been granted as at when due. That exactly is the reason why the magnitude and significance of the collateral plays a very vital role in determining the amount of loan that can be made available by the lender. An expensive collateral attracts a large sum of loan just as a relatively inexpensive collateral attracts a low availability of loan.
Loan against retirement or investment funds
Tayne moreover also counseled that such individuals seeking approval for personal loans can also explore the option can getting personal loans against investment fund or retirement fund. She explained succinctly by saying she does not endorse taking out loans against oneself, particularly when one does not have an assured source of income at that time for paying back the loan.
Unsecured loans
Apart from the aforementioned options of securing a loan as an unemployed individual, another option that can be explored by the unemployed individual is the unsecured personal loans. The only issue here is that they are not without their baggage, they attract very stringent lending rules. Unsecured loans are more problematic for lenders, unlike the other lending options. As a result of this, lenders don’t usually grant this type of loans to individuals without a job or steady source of income.
It is, however, important to note that creditors will be benevolent enough to grant a loan to an individual without an employment who seek an unsecured loan when such a borrower receives a form of income, like social security, disability or unemployment. In the event that an individual who seeks the loan has access to money from these sources at least per month, there are still creditors that will consider granting a personal loan to such individuals in spite of their unemployment.
It is vital to note that borrowers should not restrict themselves to one lender in case they desire a personal loan. The importance of this is that it gives the borrower the opportunity to compare options from different creditors in order to be able to pick the creditor with lowest interest rate available on the personal loan.
Unemployment is not always because of laziness
Unemployment is real, that is the fact that so many people have had to contend with. Unemployment is not always as a result of the laziness of the individual, there are a combination of other factors that are responsible for making an individual suffer the debacle of being unemployed.
It is strategic and technical sometimes. Unemployment can be cyclical in which some people who have been employed before were retrenched as a result of an economic meltdown or a downward spiral in terms of revenue for the company they work for and that lands them in the undesirable state of unemployment.
Unemployment can also be frictional in such a situation in which individuals decided to change jobs. The period in which the individual who wants to acquire a new job spends in seeking a new job opportunity is the period in which the individual is frictionally unemployed. It is obviously not as a result of being lazy or refusing to seek for an opportunity to get gainful employment because most times, being frictionally unemployed is often because the person wants to get a job that truly matches up with his or her skills.
Finally, unemployment can also be structural. An individual who is structurally unemployed is such that he or she possesses skills or qualifications that is not at the present time in demand or is no longer in demand as a result of advancement in technology most times as well as other factors too sometimes. It is not because of laziness, such individuals may have to upgrade their skills or acquire new ones in order to be able to stand a good chance of being employed.
Bottom Line
As much as it is true that getting a loan as an unemployed person is not that easy especially if we have to look at it from the perspective of comparison with the chances of people who are actually employed. However, as seen above, it is not an impossible task as such, it is definitely possible to still get a loan despite the seemingly unfavorable circumstance of being unemployed. The loan options that can be considered has been highlighted above, just go ahead and explore them and you will be smiling to the bank.