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A concerned man talking on mobile phone hoping to get an hardship loan while unemployed.

Emergency Hardship Loans for the Unemployed

It's tough when you lose your job. So many people live paycheck to paycheck, so a job loss is a hit to the family budget. It's easy to get behind but hard to catch up. 

Then, something else happens. For example, you have a water leak or the heater goes out. Figuring out how to pay for these types of things when you're unemployed can be tremendously stressful. Fortunately, there are emergency loans for unemployed people to help you through times like this. 

Key takeaways

  • Losing your job can be financially challenging, especially if you live paycheck to paycheck, but hardship loans for the unemployed can provide a safety net during tough times.
  • Start by filing for unemployment benefits through your State Department of Labor. It might take a while for benefits to kick in, so be patient and diligent in your reporting.
  • Reach out to your service providers and creditors to discuss alternative payment plans or assistance programs to avoid falling behind on bills.

Hardship Loans for the Unemployed

Online loan options may be easier to obtain quickly, especially if unemployed. However, some decent loans exist for the unemployed, so you should research before choosing.

Those unemployed and needing a loan need to evaluate their options before deciding. Here are some key points to look at when doing research.

Bad Credit Loans for the Unemployed

An unemployed person who needs a loan probably needs it to help pay some bills or for an emergency expense until they get a job.

Acceptable reasons to take out a loan when you are unemployed are to pay utility bills and medical bills, buy food, put gas in the car to look for a job, go to work when you find work, or pay for a home or car repair.

This is an important distinction because you will have to pay a loan back, and you should be responsible for how you use it when you are unemployed.

Simple Fast Loans is one option you can use to take out a loan to keep you afloat while you look and find another job. A loan from us can help you pay for emergency expenses and necessities, which can be a tremendous help until you find a job.

Installment Loans

Installment loans are a common loan type that has a flexible repayment schedule. The amount you can borrow on an installment loan depends on your income and ability to repay. The maximum amount also varies under different state regulations. 

Those who are unemployed should look at their past salary and what they may be bringing in now with side work to see if they would qualify for this type of loan. You can qualify for a hardship loan like this even though you are unemployed.

Look at Your Credit Score

Knowing your credit score before looking at any loan options is essential. A good credit score can help you secure a loan, even if you are unemployed. Understanding your credit score can also help you save money on loan repayment.

There are options for those with bad credit or no credit, but those become more limited the lower your score is with the bureaus.

They become further limited when you don't have a job. However, some are particular about scores, so it doesn't hurt to know yours.

Additonal Actions After You Lose Your Job

Losing a job can leave you a bit disillusioned. However, there are some things you should do immediately.

File for Unemployment

The first thing you should do when you find yourself unemployed is file for unemployment benefits. These are typically handled through the State Department of Labor. You can go to the labor department to do the paperwork if you don't have a computer or need help filling out the forms. 

However, the easiest way to file for unemployment is online from your home. Be aware that you will need to report any income and job searches weekly, even though it can take a month or two to start getting unemployment benefits. Be aware of any letters they send, and file an appeal if you are denied. 

Look for Side Hustles

You will want to start looking for a full-time job, but you should do some side hustles while you're looking. Of course, the type of side gig you do depends on your skills, but plenty is out there, from home and yard cleanup to cooking meals for others, babysitting, and dog-walking. 

Contact Current Providers

It's always better to be proactive when you are facing a difficult financial situation. Again, those you have been doing business with can be helpful. While it may not thrill you to contact them personally to explain your situation and work out alternative payment plans, it will be financially beneficial for you to do so. 

It beats ignoring their calls and letters that will eventually come when you can't pay the bills. 

Mortgage and utility companies often have special plans available to those between jobs. In addition, there are loan modifications and deferments for homeowners. However, getting approved could take up to three months, so it helps to apply before falling behind on payments. 

These options will also help save your credit score, so they are worth pursuing even if you don't think you will need them.

Try your best to keep up with payments while you wait for your options to be approved. 

Utility companies often have hardship programs that allow you to pay less for a specific period of time. That can be helpful while you wait for your unemployment benefits to be approved. 

Some will also allow you to "pay as you go" on utilities. That can be beneficial if you are doing side gigs and can't afford a hefty monthly bill. Some of the payment is used for any deferred billing, so you are also paying off the old bill rather than paying it all upfront.

Check Your Home Equity

Even though you are unemployed, you may be able to draw from your home's equity to help get you by until you start working or get unemployment benefits. 

However, be aware of the repayment terms because failing to do so could put your home at risk. 

Explore Government Money

Programs still exist to help people who suffered through the pandemic and beyond. Look into state and federal programs to see if any could work for your situation.

Plan Your Unemployment

Regardless of your loan options, you need to plan how to bring in money while you are unemployed and when you need to return to work.

This will help you plan a budget for enduring without a job, give you a better idea of how much of a loan and the type of loan you need and can feasibly handle, and help guide you on the repayment terms.

A plan will help you determine the loan product that best fits your needs and can point you in the right direction.

Creating an unemployment plan will also give you a sense of control and peace of mind.

If You Need Money Now, Don't Act in Fear

Being unemployed can be scary. However, don't make any decisions based on fear. Those typically end up being bad decisions. Instead, plot your course in confidence. That will help you manage your bills and probably land you a better job faster than acting out of desperation.

Look for loan companies that can give you a quick answer to your application. That will ease your fear because you aren't waiting for an answer and wondering what you will do if you are denied.  

As a fully online loan company, Simple Fast Loans can give you a loan decision immediately. It's a stress-free solution in that the application is easy to fill out, and it has hardship loans, or unemployed loans, to help you get back on your feet.

You don't have to be anxious or rushed as you fill out our application. You can do it from your own home in a relaxed environment. Our company website has a great FAQ section and a customer service team that can answer all your questions in a live chat format. That will reduce any anxiety you have about taking out a loan while you're unemployed.

Look for Convenient Loans

You don't need to add to your stress. No one needs a lot of paperwork and hassle to get a loan when you're unemployed. After all, you are already filling out paperwork for unemployment benefits and possible jobs.

This is one aspect that makes online loans an option. Loans offered by us are always convenient and straightforward in their application process. Applications can be filled out anytime, 24/7, and the website posts all its information and questions so you can browse through it at your leisure.

Look at the Loan Company's Reputation

It's important to deal with a reputable company when looking for a loan while unemployed. You want to ensure you are not falling for a scam. There are plenty of people out there who prey on desperate people.

We have a great reputation with customers! Simple Fast Loans has a five-star rating with TrustPilot and is a fully licensed financial services company.

We have a transparent application process and will provide you with all the information you need before you sign to take out a loan. We will answer your questions through live chat, on the phone, by email, or even by snail mail so that you are comfortable when taking out a loan knowing that customer service is readily available.

Look at Your Location

Sometimes, the place you live will determine what loans are available to you. Not all loan companies are licensed in every state. You will want a company that has a nationwide reputation.

Apply Today

Living with an emergency expense while looking for a job can be stressful. It doesn't have to be. Any number of options exist where you can get some financial help. Do your research and explore your financial options. 

Related Frequently Asked Questions

For readers who are looking for unemployment loans, here are some other questions they frequently ask:

What’s a Hardship Loan? 

Think of a hardship loan as your financial life jacket when you're caught in the rough seas of unexpected expenses. It's a loan specifically designed to provide temporary relief during challenging times. These loans can help you cover essential bills, avoid piling up high-interest debt, and maintain your financial stability when the going gets tough. Hardship loans typically come with a few key characteristics: they are accessible and have speedy approval timelines.

This quick turnaround can be a game-changer when you're facing immediate financial strain. Short-Term Solution. These loans are meant to be short-term solutions. They're not a long-term financial strategy but a way to bridge the gap during emergencies. 

Can I Get an Emergency Loan with No Job?

Getting an emergency loan without a job can be challenging, but it's not impossible. While traditional lenders may have strict employment requirements, some online lenders, like Simple Fast Loans, offer loans to individuals without a job. However, other parts of your profile may be scrutinized to make sure you can pay back the loan, like your credit history.

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