6 Best Personal Loans For The Unemployed

Personal Loans for the unemployed are loans offered to those presently out of work to pay their bills and cover expenses. Some lenders offer personal loans even if you don’t have a stable job. Of course, the interest rate, loan tenure, and other factors differ from loans provided to income earners, but that won’t stop you from getting financing from various lenders.

Personal loans for the unemployed are a great way to finance a big purchase or pay off an unexpected expense, but getting approved when you don’t have a steady income source is a challenge, but it is still possible. 

Personal Loans for the unemployed loans in the form of secured loans, payday loans, and government personal loan schemes for the unemployed

Suppose you are looking for good Personal Loans for the Unemployed. In that case, this guide will provide helpful information on the best Personal Loans for the Unemployed, things to consider before applying for a loan if you are unemployed, and the advantages and disadvantages of a loan with no job.

Things To Consider Before Applying For A Loan If I Am Unemployed?

The first thing is to identify the reason why you would need a loan in the first place. Availing of a loan means going into debt which you cannot afford if you are unemployed. 

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It is essential to avail a loan that you can repay in time; hence, you must be specific regarding your loan amount and repayment amount.

You have to figure out how much cash you need to borrow since, with a personal loan, you’ll borrow a fixed amount of money. Consider how much you need to live on for the months you think it will take to find a new job. 

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Before applying for a loan, you must compare the available loan schemes and select a plan you feel will be suitable. You must look to maintain your credit score, as a good credit score means lower rates of interest which would help you repay the loan in time.

6 Best Personal Loans For The Unemployed

Below are the best Personal Loans for the Unemployed.

PenFed Credit Union Personal Loans

PenFed Credit Union Personal Loans is one of the best Personal Loans for the unemployed. Its APRs start at 7.74%, the average starting rate for a personal loan. Their funding process is fast, and, in some cases, you can get your money within one business day. You can access loan amounts of $50,000 with PenFed Credit Union Personal Loans.

Pros 

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  • 0$ prepayment fee.
  • The loan option is with a $0 origination fee.
  • They consider applicants with fair credit.

Cons 

  • Charges late fee of $29

LendingClub Personal Loans

LendingClub Personal Loans is one of the best Personal Loans for the unemployed. Their funding process is fast, and, in some cases, you can get your money within one business day. 

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Pros 

  • There are low APRs available to qualified borrowers.
  • $0 prepayment fee.
  • Considers applicants with fair credit.

Cons 

  • Charges an origination fee of 6% of the loan amount.
  • Charges a late fee of $15.

MoneyMutual

MoneyMutual is a broad network of lenders who make short-term loans. MoneyMutual network comprises over 60 lenders that give out payday, bad credit installments, and other loans to people who need them. MoneyMutual offers maximum short-term loans of $5,000. The sign-up form is simple that it takes about five minutes to complete. The funds are processed in just 24 hours

Pros

  • Many educational resources are available on their site.
  • Fast funding.
  • The process is simple, and the approval is quick.
  • The service requires no fee.

Cons

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  • Some loan servicers may not be available in your state.
  • Loans may have high-interest rates.

BadCreditLoans

BadCreditLoans is one of the Personal Loans for the Unemployed that helps when others can’t. It is created for people with poor credit, and it gives them the ability to get small loans that they can easily pay back and use to rebuild their credit. The loans do not directly come from BadCreditLoans; instead, you are connected to a broad network of lenders who will send you loan offers to consider. You can access loans from $500 to $10,000.

Pros

  • You can compare multiple lenders at once.
  • Free service.
  • Customer service is easy to contact.
  • It offers services to help improve credit scores.

Cons

  •  Loans tend to be minor, especially if you have poor credit.
  •  Your information will be sent to numerous lenders, which could result in marketing calls or emails.
  •  Interest rates tend to be high.

CashUSA 

CashUSA is one of the best Personal Loans for the Unemployed. It is a loan marketplace where many lenders work together to give interested borrowers options to choose which Loan suits their needs. The loans range in value from $500 to $10,000

Pros

  • No minimum credit score is needed to qualify.
  • Service is free to use.
  • It is safe, convenient, and secure.

Cons

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  • A minimum income of $1,000 is required monthly.
  • Interest rates can be very high.
Personal Loans for the Unemployed
Photocredit: SFGATE

Personal Loans 

This is similar to the other loan companies in this guide. Personal Loan is a network dedicated to matching interested borrowers with lenders. They do not lend money directly; instead, you can enter your information and compare rates and terms of loans from many lenders. This company only provides loans to people with fair to excellent credit scores, not those with poor credit. Loans from $1,000 to $35,000 can be accessed, and funding is within one business day.

Pros

  • There is the availability of a broad network of lenders.
  • Loan amounts up to $35,000.
  • Credit unions and Banks are part of the network, which can help you get a loan with more competitive rates.
  • Free to use service.
  • Loan terms go from 3 to 72 months.

Cons

  • It is not for people with poor credit.

Advantages of a loan with no job

  •  Getting a loan is quicker access to funds than saving up, which could be helpful in an emergency. But it would help if you were confident you could afford the monthly repayments to avoid a worse financial situation.
  •  A loan usually offers a fixed interest rate and fixed term, which should help with budgeting. Unlike a credit card or bank overdraft, a loan won’t give an open line of credit, so there’s no temptation to borrow more.
  • A loan could be used to reduce other expensive debts in one place -making your debts easier to keep track of and cheaper.
  • One of the advantages of Personal Loans for the unemployed is that meeting loan repayments on time and, in total, could boost your credit rating.

Disadvantages Of A Loan With No Job

  •  One of the disadvantages of Personal Loans for the unemployed is that you’ll typically face higher interest rates on a loan if you’re unemployed. This is because lenders see you at greater risk of default if you’re unemployed.
  • Taking out a loan will increase your debt burden. Think carefully about borrowing, particularly if you already have other debt commitments.
  • If you have some financial difficulties and can’t meet your loan repayments, you will likely get penalty fees and higher interest rates. It could also damage your credit rating.

Conclusion 

Personal Loans for the Unemployed can be a valuable tool for anyone who needs money to cover an expense. It would help if you constantly analyzed your circumstances to make sure that you need to apply for Personal Loans for the Unemployed. We hope this guide on the best Personal Loans for the Unemployed has been helpful for you in your search for a personal loan. Kindly leave your view on the Personal Loans for the Unemployed in the comment section.

 

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