Get a Loan – Many people need help when they are going to apply for a loan. Some of them don’t have a job when they are planning to get a loan. It may seem to be impossible for some people because most loan companies require the loan applicants to have a stable job for a steady income. In this article, you will learn about some important things about loans for unemployed people. By learning about these important things, you will be able to find some opportunities to get your loan application approved even though you don’t have a job or stable income.
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How You Can Get a Loan Without Having a Job
When you are applying for any loan, especially a personal loan, most lenders will take a look at your credit score, your income, and your other debt. They want to make sure that you have enough money as your income to cover your loan payment. Your income must be higher than all of the debt payments that you need to make every month. It will ensure that you can pay back the loan that you will get from them. Sean Martin D. Plantado, head of a customer service at Digido.ph, notes that ideally, the debt payments should be less than 30 – 40% of your total income every month.
If you want to get an unsecured loan, your regular income will never have to come from your regular job. You may get income from many different sources or jobs. For having a secured loan, you can also qualify without having any income at all. It means that you are going to put your assets and use them as collateral. The lenders will use your assets as collateral and give you loans without requiring you to have a stable income every month. When you cannot pay back their loans, they will take back your assets. Here are several things that you need to know about how you can get a personal loan, especially when you don’t have a job.
- Find your options
This is the first thing that you may want to know. You must be familiar with all of the loan options that you have. When you are looking around, you can find a lot of loans that are specially created to target people with no credit history or bad credit scores. These types of loans are usually more expensive than regular loans. Here are several options that you have.
Unsecured loan. This is a loan that is suitable for people who meet the credit requirements and have a stable income.
Secured loan. This loan is the best for people who have assets to use as their collateral. A real estate loan can be considered one of the most popular secured loans.
No income and no assets loan. NINA loan is commonly used to finance any real estate that can be expected to generate rental income.
Title loan. If you have a car and you are going to use your car as collateral, you can consider using the title loan as your choice. This loan usually has a short loan term and also a high price. However, it doesn’t require you to have a credit check.
Payday or cash advance loan. This loan is good for people who have a job with a steady income. Most payday lenders don’t require you to have a credit history for applying for this type of loan.
Payday Alternative Loan. This is another popular loan that is good for all members of a credit union. These loans are short-term loans. They cost much less expensive than regular payday loans.
Cash-out Refinance. When you are applying for this loan, you will use your home as collateral. You will borrow more than you are owing on your mortgage. You can get the difference in cash. It will be considered a secured loan. You don’t need to have a source of income to cover the payments.
2. Document your income
Once you find your options, you also need to document your income. Your income can come from many different sources. Any income that you receive will help you qualify for getting an unsecured loan. You will have to provide good documentation, for example, a recent bank statement. Most lenders will consider some income sources as your options, such as alimony, child support, dividends, social security, disability, interest, spouse’s income, required minimum distributions from the retirement accounts, etc.
3. Document all of your assets
This is also important for you to improve your chance of getting your loan application approved. If you don’t have enough income to get qualified for any loan, you can consider using your assets as your collateral. Some examples of assets that you can use include a boat, car, motorcycle, RV, bank account, stocks, bonds, jewelry, artwork, collector’s items, etc. If you are going to use jewelry, collector’s items, or artwork as collateral items, you may need to ask for a professional appraisal for valuing your assets.
4. Check with your banks and online lenders
There are a lot of options that are available around you now. Many banks and online lenders are ready to give you loans even though you don’t have a stable income. They will consider any other income sources or assets from you when you are applying for getting a loan. However, you have to be careful when choosing the right lenders for you. There are a lot of predatory loans that have enormous fees and interest rates. You can take a look at the details carefully before you decide to choose the best loan for your needs.
What to do if your loan application is rejected
Even though you are rejected, you can still re-apply for your loan. You can try to lower down your loan amount. You can also ask your lenders or banks to find out how you can get qualified for getting a loan. You can re-evaluate your needs and also consider doing some other strategies to get your loan application approved. You can also ask someone to be your cosigner to take responsibility for your debt.