Random job loss puts a major emphasis on one’s life, especially on his or her financial condition. Of course, satisfying personal needs with the jobless condition is quite a difficult task. On the top of this, the expenses that crop up all of a sudden may become a real challenge to deal with.
As you need to fund your kids’ education, pay off utility bills and cover up the basic requirements of your family, you have to look for a quick solution first. This is exactly where unemployed loans seem a perfect alternative to combat with the recent crisis.
Surprising, But True
‘Despite having no job, the loans are not out of your reach.’ When someone says this, you might get surprised. It, of course, sounds surprising but it has become a reality now. Actually, there are certain factors that you can rely on to convince the lenders for approving your loan request.
Here is a checklist of alternative income sources that you can present for the lenders’ satisfaction:
- Unemployment Allowance
- Income from Rental Property
Today, convincing a lender to approve you for a loan is not as difficult as you may think. You just need to have any of these resources, as an alternative income and this is actually enough.
What If You Are A Stay-at-Home Mom?
5 out 10 unemployed persons are homemakers. Qualifying for a loan as a housewife seems tough for most women. However, this is not the end of the life of stay-at-home moms. Of course, someone takes a loan only then when he or she is desperately looking way to get additional funding. And the private lenders do understand that every individual should have a chance to borrow money in emergencies.
Obviously, people with no job have limited chances of having a loan. But, it does not mean that housewives do not stand a chance to take a loan. If you are a self-employed mother, you will not face any difficulties in accessing a loan. However, the absence of these alternate income sources will make it troublesome for you to borrow in an unsecured way. Thus, the lenders want you to have at least some forms of security to get access to immediate funding.
Does Credit Score Affect Your Chances of Approval?
The lenders are pleased to approve a loan request of those, who have a credible borrowing record with a steady income. Since you are jobless at the moment, having an adverse credit score might affect your chances of having a loan.
With ongoing salary, you have a chance to borrow without collateral. Otherwise, you will struggle to receive a loan approval if you are unemployed with a bad credit record. However, it does not mean you won’t get access to these loans. You still, can improve your recent financial circumstances with a secured lending option.
Lending money to someone with no active income is a high risk for the lenders. That is why these kinds of loans are a bit expensive in interest rates. Of course, there is no way out of the high interest rates but, you have to make sure that you can afford to pay the borrowed amount back. In fact, there are two ways that you can choose to go with:
To get the approval, you may bring a co-signer. This will indeed increase your chances of having a loan without facing major setbacks.
Loan APR affects your repayment schedule. And that is why it is good or you to compare the loan deals varied lenders and then make a wise decision.
If you are still in doubt while stepping into the lending industry, then these loans will definitely change your perception. Look, through the customers’ reviews and select the appropriate deals that can help you make the survival easy as a stay-at-home mom.