Personal Loans

Being Unemployed is Not a Reason For a Loan Rejection

Unemployment only deepens the need for money, since a major and sometimes the only source of income has been lost. Many unemployed have tried applying for loans multiple times and have been rejected, since most lenders require a stable job as a part of successful loan application. You may be struggling financially due to unemployment, since government help is rather limited and life expenses are hard to reduce.

While government does provide assistance for people who became unemployed, the amount of such financial help is typically around 50-80% of your previous take-home pay. For many it is simply not enough to survive. Well, your worries may be over, since there is an opportunity to qualify for an unemployment loan. It is even easier with internet, since you may acquire all the needed funding without making trips to banks and other lenders. Such loans are great for people with good credit standing who have lost their income and have trouble obtaining financing. People with history of late payments, delinquencies, and bankruptcies are also eligible.

Both, Secured And Unsecured Loan Options Are Available

Unemployment loans, like any others, are available in secured and unsecured forms. Should a significant amount of cash be needed, secured borrowing may be the only option. Your house would typically serve as collateral, even though some other assets may be considered as a mean of loan security by lenders. Such loans usually feature low interest rates along with longer repayment terms of up to 25 years. Loan amounts start from $25,000 and may be as high as $75,000. If you are not a homeowner, then pledging collateral is not an option. You may take an unsecured loan then, which may feature amounts from $500 to $25,000 depending upon your needs and ability to repay. Such loans do not require any collateral, and sometimes are considered by homeowners who do not want to risk losing their home should something unexpected happen.

Unsecured loans, however, typically feature higher interest rates. Repayment terms are also shorter, compared to home equity loans, and range from several months to 10 years. Getting a creditworthy cosigner is a great way to lower interest rate on a loan and to improve your chances of getting approved for a higher amount. Banks love cosigners, since they decrease the risk of loan default, as cosigners become responsible for loan repayment in case you fail to make your payments. In lender’s eyes, a cosigner is an added layer of protection against a loan default, therefore they are willing to offer better terms to co-signed loans.

Qualifying For An Unemployment Loan Is A Simple Task

Basic qualification criteria for unemployment loans narrows down to being of legal age (18 in most areas), being a U.S. citizen or permanent resident, and having a checking account open for at least four months. That is about it! It is way simpler than most people think. Quick and efficient application process is conducted entirely online, saving a lot of time to potential borrowers, since they do not have to set their foot out of the door. After the loan application is filled out and borrower’s details and identity is verified, the funds are transferred to the borrower’s bank account, often overnight. The only vital responsibility is to keep up with the payments on the loan, which will help to raise your credit score.