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Can I Be Approved for a Loan with No Job?

You can get approved for a loan even if you don't have a job. You'll need a good credit score and some other source of reliable income you can prove. A credit history showing on-time payments is also a huge help.

In this post, let’s discuss different loan types that even those who are unemployed can qualify for. Identifying important tips for getting approved and what you can expect from the process.

The Importance of a Credit Score

Most lenders have minimum credit score requirements to meet before you can qualify for a loan. They usually differ across various types of loans. 

Credit scores are built off your credit history, meaning your payment behavior and spending trends. The full calculation is complicated because it's based on a lot of different data.

One thing you can do before applying for a loan is to give your credit score a little boost. You can raise your score in only a few months. Keep reading to find out how.

How to Raise Your Credit Score Quickly

There are a couple of ways to do this. One takes a few months, while the other helps instantly.

  • Card balances - If you have credit cards with balances sitting above 30% of the credit limit, try to pay those down below the 30% benchmark. Keep them there for a few months to see your credit score go up.
  • Experian Boost - This service allows you to get a boost based on payments you make for your utilities, some streaming services, and your phone. If you meet the criteria, you could see your credit score increase almost immediately.

Credit History and How It Impacts Your Credit Score

The stronger your credit history is, the better your credit score will be and the better your chances are of getting approved for a loan. Your most recent credit history more significantly affects your credit score.

Your credit history includes several factors. One is the length of time you've held your accounts. Holding accounts for a long time affects your history positively. 

Making payments on time every month strengthens your credit history. The most recent history is the most impactful to your credit score.

While it's not always a deal-breaker, a negative occurrence like a foreclosure or bankruptcy weakens your credit history.

You Must Show a Source of Regular Income

Just because you're unemployed doesn't mean you don't have income. Most of us bring in money from various sources.

Lenders can let you borrow money if you can prove you have money coming in regularly that's substantial enough to cover your monthly expenses and your loan payment. Several sources are acceptable.

Acceptable Income Sources

Paychecks aren't the only source of money in many households. Here's a list of other acceptable forms of income.

  • Social security payments
  • Disability payments
  • Child support
  • Alimony
  • VA benefits
  • Cosigner income
  • Government annuity payments
  • Pension funds
  • Retirement benefits
  • Regular interest payments
  • Public assistance
  • Unemployment benefits

Types of Loans for Unemployed Borrowers

You'll likely apply for some type of personal loan. Let's take a look at the options available.

Secured vs. Unsecured Loans

So, what's the difference between a secured loan and one that's unsecured? Secured loans are backed up by something you own. Unsecured loans are not.

Secured loans include something you own as collateral. That means if you can't make your payments, the lender can seize the property you put up as collateral. That's something to consider before committing to an agreement.

Title Loans

If you own your car outright and have the title, you can use it to secure a loan. You'll take the loan out against the title, so the car is your collateral. This is a type of secured loan.

Make sure you only take out a title loan if you can afford to make the payments. If you miss a payment, the lender can take your vehicle.

Registration Loans

Registration Loans are like title loans but are backed by a vehicle you don't own the title to yet. You use your vehicle's registration as collateral for the loan

Lines of Credit

A line of credit is established for the borrower in an amount determined by their qualification factors. You can draw on the approved amount up to its balance. You don't have to use the entire amount. 

Your line of credit stays there for you to use when you need it. You can continue to borrow off your line of credit until you've used the whole balance. These are more flexible concerning cash advances than other types of credit. 

Debt Consolidation Loans

When you have a lot of debt in different places it's tough sometimes to make separate payments to all those creditors. Debt consolidation loans combine your payments into one that allows you to pay bills down faster.

Some debt consolidation loans require you put something up for collateral. Also, you might end up paying more in the long run. In the short term, though, you'll free up more cash for your everyday expenses. 

Where Can I Get a Personal Loan?

You can get personal loans from several places. Many people apply for them with their banks. Credit unions are another option. Credit unions may even have lower credit score requirements than traditional banks. 

If you want the most convenient option, an online lender might be best. Online financial companies make it easy for you to apply for a loan and get a response as fast as possible. You could be approved in minutes.

How Long Does It Take to Get the Funds?

Each lender has their own timeline. Simple Fast Loans typically has the funds in your account by the end of the same business day, provided you signed everything before 2 PM. If the documents are signed after that, you'll most likely see your funds the following business day. 

How Do I Sign My Documents when Applying Online?

When you go to the Simple Fast Loans website, you'll follow the prompts to fill in your application with all the pertinent information. The loan agreement is established from that information. 

The company creates a loan package for you. You'll either access it directly through the website or a link sent to your email. 

You'll simply follow the instructions that guide you through the e-sign process. You'll need to sign or initial in several places.

Managing Your Account

Once your funds are deposited in your bank account, you are free to use them. You'll manage your account with Simple Fast Loans via the account page

You can see your balance, your payment information, and all other necessary information. Most of our accounts are set to autopay each month. You may want to make extra payments, though.

Are There Penalty Fees for Paying Off Your Loan Early?

You can pay your loan off as early as you want. There are no early payment fees. 

If you miss a payment or pay late without reaching out to us, you may be charged a late fee. If you know you're going to be late with a payment, contact us before your payment is due to make arrangements.  

The Bottom Line

If you're asking yourself, "can I get a loan with no job," the answer may be yes. If you have a good credit history and a decent credit score, your chances are higher. You also need some source of reliable income. If you need cash, apply for one of Simple Fast Loans personal loans today. It's easy, fast, and hassle-free.

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