Loans for Single Fathers

Single parents typically struggle with financial hardships; single parent families don’t enjoy the advantage of dual incomes. Additionally, one has to juggle work, take care of the children, and be a responsible parent, in spite of challenges and difficulties. Being the only parent there for your kids can be rough, and it may lead to financial problems, such as a bad credit history. In this scenario, what can one do? In this article, we plan to cover the loan options single fathers have, and provide you with a detailed perspective on your situation.

Understanding Loans for Single Fathers
Loans for single fathers are designed to meet the financial needs of parents in this situation, and these loans come with a range of advantages. If you are in the position of having a bad credit record and no recent employment track, lenders may be resistant to approving your request, whether we’re talking about home loans, personal loans, emergency loans, bad credit loans, or auto loans.

Nonetheless, even if you have bad credit, and low income, that doesn’t mean you won’t qualify for a loan. Banks provide single fathers with options for loans, but first and foremost, you need to get the base information on the subject and keep track of your credit score. Concurrently, you should settle on a loan budget, which will enable you to make timely monthly repayments.

 
Features of Loans for Single Fathers
Typically, the features characterizing the variety of loans for single fathers are similar to other loans, as following:

• Confidentiality
• Flexibility
• Prompt approval
• The alternative of applying online
• Speedy cash access – up to 24 hours
• Online account management
• A range of repayment options

Loans for Single Fathers – Options
As previously outlined, there are various loan options for single parents, namely fathers. If your credit score meets the requirements, you are more likely to receive approval for your application. However, as a single dad, your prospects might not be as confident, and you might struggle with bad credit.

• Secured loan – a secured loan refers to the type of personal loan that asks the borrower to have collateral, which stands as security, in the case in which the borrower doesn’t pay off the debt. That minimizes the risks for the bank, as the lender will take hold of the collateral in the scenario in which the borrower doesn’t make repayments. The amount of money will depend on the collateral offered, and the greater majority of banks provide U.S. residents with this alternative. Types of collateral can include a home, vehicle, shares, bonds, etc.
• Unsecured loans – distinct from secured loans, unsecured loans don’t involve collateral, and may decrease the chances of getting approved, if you have bad credit history and low income.
• Fast cash advance – this type of loan provides financial aid to single fathers who need help on the spot. However, the main downside to this option is that the interest rate is typically high. Additionally, the greater majority of banks that provide this option require collateral or a history with the borrower. As a borrower, you have to be a U.S. resident, and you have to complete an application to get hold of the cash.
• Second chance – this loan is helpful for single fathers that have a poor credit record. As the name already implies, it’s about giving second chances. Once the loan is approved, the money will be directed to a shared account. And when the borrower earns money from employment, the money will be transferred into the shared account. After the loan is paid off, one can accumulate savings. In other words, as soon as the loan is paid off, the borrower will present an improved credit score. Your eligibility will be weighed according to your credit history, and income. The maximum borrowing amount is $500.
• Payday loans – this kind of emergency loan doesn’t require collateral, and there is no credit clock for the loan either. The sum of money depends on the income. Additionally, when you receive the loan, you will be communicated a payback date as well. At that time, you are required to have paid the amount as well as the interest.
• FHA loan – if you wish to purchase a home, you must get acquainted with FHA loans, which are administered by the Federal Housing Administration. As these loans are insured by the government, the costs are significantly lower, as opposed to other home ownership options. Another advantage is that the borrower can come with a minimum down payment.
• Student loans – these types of loans are made readily available to single fathers who seek to continue their higher education. There are multiple alternatives including Stafford Loans, Perkins Loans, and Grad Plus

In addition to the above options, learn about multiple low income loan options or different benefits and grants.

If your borrowing money to pay for everyday expenses such as utility bills, food or other essential household needs, there are other free assistance options available. Learn about other single father support programs which assist with numerous monthly expenses.

 
Pros and Cons of Loans for Single Fathers
Finding a solution to your financial problems and receiving approval for your loan can be a genuine relief. Still, similar to every decision we make, there are pros and cons attached, as following:

Pros:

• Fast approval
• Increased rate of success
• Flexibility concerning credit scores
• Limited amount of restrictions

Cons:

• Possibly, high long-term interest rates
• Additional loan costs

Eligibility for Loans for Single Fathers
In order to be eligible for a loan for single fathers, you should fulfill the following criteria:

• Present a valid social security number
• A detailed employment record
• An active bank account
• You must be a U.S. resident
• You must be more than 18 years old

How to Apply for Loans for Single Fathers
Before you apply to get approved for a loan, first, you need to be pre-qualified. At this point, you need to provide the financial institution with documentation that proves you can make repayments. Afterward, the lender will anticipate the sum of money the bank will lend you. Upon meeting with the lender, you will be told exactly the documents you are expected to bring.

Identification in the form of social security number, or another similar document, is necessary. Secondly, you need to provide income verification, namely, acquire appropriate documentation concerning the past and recent employment status. Additionally, you should offer valid information regarding your assets and debts – car payments, other loans and credit cards.

Bring statements from your checking account as well. Before visiting the lender, it’s important to examine your credit report, and fix possible errors, if they exist. Your credit score has a great role in getting approved for a loan. However, some banks present minimum score criteria for single fathers. You should inquire for detailed information on the subject from the lender as every loan alternative has its set of eligibility requirements.

The application process isn’t a lengthy one, and you can do it either online or at the lender’s office, whichever option suits you best.

 
FAQ for Loans for Single Fathers

1. Should I improve my credit score, and only afterward send in my application?

Whether you get approved for a loan or not will depend, to some extent, on your credit score. The answer to this question isn’t a fixed one, being subjective, and depending on your needs as a single father supporting a family. In the case in which you are dealing with an unexpected financial shortcoming, and the situation doesn’t allow you to take the time to build credit, applying for a loan may be the ideal solution to your problem, or perhaps, the only solution.

Nonetheless, if time doesn’t pressure you, and you don’t need to get hold of a certain amount of money right away, building credit is a very good idea. Firstly, that’s recommended because, by having a better credit history, your options will be more advantageous, particularly in the long run, if we were to consider the amount of interest. Additionally, better credit record will enable you to choose from various features such as flexible repayments and others.

2. What are the main advantages FHA loan programs have for single fathers?

By all means, the FHA loan program offers many single fathers the possibility of affording the security of a home. It is far more advantageous in comparison with other mortgage programs in the U.S. For starters, the borrower benefits from flexible debt ratios, and the amount of deposit required isn’t high, making it possible for single-parent families to save up. Additionally, the FHA enables one to receive funds from other organizations for covering the 3.5 down percent deposit requirement.

Once you have decided that home ownership is the right choice for your family, the next step is to compare different options and make sure that you don’t borrow the maximum amount of cash available, as that doesn’t always illustrate the amount you actually afford.

3. What are my rights as a single father when borrowing money?

Before you agree on signing any loan, it’s primordial to get acquainted with your rights, particularly if you want to obtain a mortgage. Being informed of the total amount of costs and being offered an estimate of the loan is of great significance. There is also the matter of additional, namely hidden costs of loans, and you should always inquire about this part.