Loans for Unemployed – How and Where to Apply

With the economy being as slow as it is, countless people are losing their jobs due to layoffs and cutbacks. Because of this, many families and individuals are finding themselves in a financial bind and struggling to make ends meet. While unemployment benefits may get you by while you look for new work, what do you do in case of a financial emergency? If you are in need of a lump sum of extra cash, there are a number of financial opportunities available for unemployed individuals.

Understanding Unemployed Loans
Unemployed loans are designed to help those with minimal to no cash flow, that are dealing with serious financial hardship that require cash. Unexpected financial situations can arise at any time and being able to get assistance is important. As such, certain lenders and non-profits have created different types of loan and financial assistance products.

Features of Unemployed Loans
Unemployed loans are similar to most general loans in their features. Just fewer lenders provide these loans based on the risk of not having the loan repaid in full. General features include:

- Speed of accessing cash
- Flexible approval and repayment criteria
- Online account management
- Debit cards (on some loans)
- Online or over the phone cash top ups

Unemployed Loan Options
Loan options for those who are unemployed are limited and dependent upon strict criteria. This includes establishing the ability to repay the loan. Examples of unemployed cash flow can include, benefit payments, a pension, social security, dividends or other forms of provable cash flow.

Loan Broker – Trying to review potential lenders who provide competitive loans for those who are unemployed is difficult. Typically, online research only results in payday type lenders. A broker will have relationships with multiple lenders and be able to discuss possible options based on your circumstances and their different lenders criteria.

Co-signer – Depending on your situation, if you have a friend or family member who is employed and willing to co-sign for you, this can be an option. Specialty lenders and banks are generally more open to lending to a unemployed person who has a co-signer.

Micro Loan – These are essentially payday or short-term lending loans and are often referred to as emergency loans. Whilst these loans do serve a purpose based on their speed and ease of approval for certain financial emergencies, they are not cheap and will come with a high APR. Possibly explore other options before considering.

Secure Loan – This is a loan where you put some form of collateral up as a security against the money you borrow. A common example of a secure loan is that of a vehicle. If you own a vehicle out right or have a large amount of equity in it, you can use this as security for the loan – think of a pawnshop.

Social Security Top Up – If you are collecting social security and are struggling to meet your financial commitments for basic leaving necessities, SSI may be an option. It is an additional top up payment for those collecting minimal amounts of social security.

Mortgage Redraw – If you happen to own your home or live in a home where you have a substantial amount of equity in it, you may be able to access some of it. Sort of like a reverse mortgage, speak to your mortgage provider to look at options.

Unemployment Deferment – Many creditors will work with you in your time of need. Speak to them and discuss your situation. This can lead to different types of deferment plans, such as repayment reduction or postponement depending on the situation.

Use of Loans
General use for this type of loan includes:
- Essential household needs
- Medical
- Vehicle repair
- Home repair
- Employment needs (equipment, uniform, clothes, etc.)

What they should not be used for:
- Entertainment
- Travel
- Food
- Utility bills
- Rent or Mortgage

*If you are in need of a loan to pay for utility bills, food or other essential household needs, there are other assistance options available.

Eligibility of Unemployed Loans
Criteria are similar to that of general lenders when applying for credit and include:

- 18 years of age or older
- US citizen or resident
- Length of time at current residency
- Loan purpose
- Some form of income (benefits, investments, pension, etc)
- Amount of credit you are currently holding

How to Apply for Unemployed Loans
To apply for an unemployed loan, you need identification, proof of address, proof of any income you are receiving and in some cases references or copy of utility bills. The actual application can be done in a lenders branch or in many cases online. The whole process only takes a few minutes and approval is generally provided in minutes.

FAQs of Unemployed Loans

Are there any fees associated with these loans?
Yes, you typically have to pay a fee that is based on a percentage of the loan amount. Fees vary based on the amount you take out for your loan. Keep in mind, costs for these types of loans are higher as they are of a higher risk for the lenders.

How quickly is money deposited into my account?
Depending on lender, the deposit time can be between 1 hour to 1 business day.

Can I apply with bad credit?
This depends on the lender buy many providers to lend money to those with blemishes on their credit file.