Unemployment is never a good thing. It may cause some serious problems. For example, potential borrowers may find it difficult to get approval for loans.
Financial institutions like banks and credit unions review every loan application thoroughly. Considering high risks, they rarely issue loans for unemployed customers. Meanwhile, direct lenders are less strict in their requirements. When they get a “Can I get an online payday loan on unemployment” request, they take it seriously. They don’t say No without checking the details.
Payday Loans for Unemployed Individuals
Borrowing money online is quite difficult without a stable paycheck. Difficult doesn’t mean impossible.
Can I get payday loans with an unemployment status? Yes, you can. Many lenders do accept applications from unemployed customers. They conduct thorough check to estimate potential risks. Eventually, they make the final decision.
No one can give you a 100% guarantee for approval even if you are officially employed. So you shouldn’t relax until the final decision is announced.
By the way, there are two loan options when obtaining a payday loan. These include:
- Unsecured loans. You can get this kind of loan without putting your car or house at stake. An agreement will be based on trust that the borrower will repay the amount on time.
- Secured loans. You can get this kind of loan based on your assets. These can be your car, house, or any other valuable belongings. You will be able to borrow the equivalent amount of money with relatively low interest rates. If you fail to pay the loan, the direct lender can use your asset to get full repayment.
Getting Qualified for Payday Loans?
Before asking “Can I get a payday loan on unemployment?”, you should check your financial capabilities. Let’s check some regular income options that may help you qualify for an emergency loan while unemployed.
If you’re unemployed, but your husband or wife receives a monthly salary, you can use this fact to get a personal loan. But your spouse must be a co-signer on the loan. So you won’t be able to borrow any money without his or her permission.
While being a full-time employee, some of your taxes go into unemployment insurance. When you become unemployed, those taxes appear in the form of unemployment benefits. For example, this can be a weekly paycheck, namely a part of your full-time paycheck. It’s better than nothing in the most critical situations.
If you’re unemployed due to medical conditions, you may get regular income from Social Security. This money can help you get approved for a personal loan online.
Alimony from ex-spouse or child support
If you receive alimony or child support, you are considered to be a person with regular income. This can help you get approved for emergency loans for unemployed people.
Pension or retirement income
Once you become retired, you start receiving an income. It might be a small sum of money, but it is issued by the government every month. Many lenders consider your pension as a regular income for loan approval. The same goes for other forms of retirement income, including 401(k) and IRA distributions.
If you have any investment account that brings regular interest, you can demonstrate it as your source of income. For example, if you have a $200,000 interest that brings an annual dividend of 7%, you can state up to $14,000 as regular annual income to get approval from private lenders.
Why to Take Emergency Payday Loans from Direct Lenders?
Unemployed individuals may find it hardly possible to get emergency loans. It may be challenging to provide repayment guarantees by unemployed candidates. In most cases, consistent source of income takes the form of child support or alimony.
Can I get a payday loan online on unemployment? As an applicant, you should keep your head up while you discuss the details with direct lenders. Consider how your loan choice may influence your long- and short-term financial stability. You may be able to get out of debt circle by taking out a loan with more adequate terms and conditions.