Loans for the Recently Unemployed

Unemployment is a challenging obstacle to face. Going from a stable situation to an unstable one is harrowing, and finding your feet again may take some time. It's even worse when relentless bills continue to pile up. So, here are some of the best loans you can rely on if you're recently unemployed.

You can get a personal or installment loan even if you're unemployed. To apply, fill out Simple Fast Loans' online form today.

Finding your footing again after a financial fallout can be difficult, but thankfully, Simple Fast Loans has options to help you out, even if you're unemployed. The rest of this article will cover what loans are available for you and how to apply for a loan.

Best Loans for the Recently Unemployed

Losing your job is stressful enough without worrying about how to make ends meet. If you’re navigating unemployment and need financial help, there are options available, especially if you understand what lenders look for and what alternatives exist. Here’s a curated list of your best loan and assistance routes.

1. Personal Loans

You don’t necessarily need a paycheck to qualify for a personal loan. Many lenders will consider alternative forms of income such as unemployment benefits, child support, alimony, Social Security, or freelance earnings. If you’re married, your spouse’s income might help too—especially if you apply as co-borrowers.

Lenders will want to see that you can make regular payments, so a solid credit history and good score matter. You might also improve your chances by offering collateral (like a car) for a secured loan, or by applying with a co-signer who has stable income and strong credit.

2. Emergency Loans

Some online lenders and credit unions offer emergency loans if you need cash fast, even to people with less-than-perfect credit. These loans are usually for smaller amounts with shorter repayment terms.

However, tread carefully. Some emergency lenders charge sky-high interest rates and fees. Avoid payday loans or any lender that seems too eager to approve you without verifying income—they often create more problems than they solve.

3. Tap Into Other Funding Sources

You may already have access to other funds without realizing it.

• If you’re a homeowner, you might qualify for a home equity loan or line of credit (HELOC), using the value of your property to secure financing. These often have lower rates but carry the risk of foreclosure if you can’t repay.
• Credit card cash advances are another option, though they come with high interest and fees, so use them only in emergencies. You can also consider borrowing from family or friends. Just be clear about repayment expectations to keep things smooth.

4. Government Programs and Nonprofit Help

Don’t overlook financial support programs available through your state and local community. Start by applying for unemployment benefits as soon as possible. These can provide consistent income while you look for work.

• Other helpful programs include TANF (Temporary Assistance for Needy Families) and LIHEAP (Low Income Home Energy Assistance Program), which can help with basic needs.
• Dialing 211 is a fast way to find local organizations offering food, rent assistance, and other support services. Many churches, nonprofits, and community centers also offer emergency help.

How To Get a Loan While Unemployed

If you're currently unemployed after a recent layoff, then there are still some loan options available for you. 

When you need cash to tide you over, these loans can help you get the money you need sooner rather than later so that you can pay off your bills and focus on getting back on your feet.

Personal Loans

A personal loan is a fixed borrowing amount paid off in regular installments. If you're gearing towards one, your first step should be to figure out how much you need to borrow.

Take the total cost of your monthly expenses and multiply that number by the number of months you think it will take you to find a new job.

Doing so helps you recognize how much cash you'll need to tide you over and avoids borrowing more than you need. Once you're ready to submit your application, you'll need to have the following:

• Proof of income
• A valid form of state-issued ID
• Your routing and account number for your checking account

You might be worried that your proof of income isn't enough to get a loan, but most lenders will understand that your financial situation is unique. Not everyone gets paid directly by their employer, after all.

While it's not a guarantee of approval, you can use the following as sources for your income:

• Government benefits
• Rental income
• Inheritance
• Spousal income
• Investments
• Alimony or child support
• Pension or retirement income

If you have some recurring money or a lump sum that's recently become yours from an inheritance, then you can list it as a source of income to prove that you're capable of repaying the loan.

Tips to Boost Your Chances

Getting a loan when you're unemployed can be difficult, especially since the entire concept of a loan relies on your ability to pay it back.

When you're unemployed, you pose more of a liability to the lender, making them less inclined to work with you. Even so, there are some helpful ways to improve your chances of qualifying.

Start Small

If you're unemployed, you should always aim to borrow as little as you think you can manage for the time being. This is because larger loans are a more significant risk to lenders, making them more likely to reject your application outright.

Start small and only borrow a little to make your loan less risky for the lender and improve your chances of getting approved.

Get a Secured Loan

Loans can be secured with a physical asset that the lender will reclaim should you fail to repay the loan. As such, it's a last resort that you only want to consider if you don't have other options.

Once you've got a game plan for finding new employment and getting back on your feet, a secured loan might be the right option to help you get the quick cash you need and get approved for a personal loan.

Add a Cosigner

A cosigner is responsible for paying off the loan if you cannot. If the signer has a high credit score and is employed, it ensures that the lender will get their loan money back promptly.

Cosigning has risks, of course, so make sure you have a heart-to-heart with your cosigner to let them know how you plan to repay the loan.

Alternatives to Personal Loans

In many cases, applying for a personal loan while unemployed can be difficult. After all, it's difficult for a lender to assess your ability to repay the loan and, therefore, the risk they incur by lending to you. Consider these alternatives if you need them.

Borrowing from Family or Friends

If your friends or family are financially stable, it might be a good idea to lean on them for support for a family loan while you find new employment.

Just be careful to lay out what you need in writing with someone you trust. Miscommunications, especially about money, can damage a relationship, so always be clear with your lender.

Sell Valuables

When you fall on hard times, you might need quick cash without a way to pay off bills. In this situation, you might want to think about selling some of your unused valuables, furniture, or other assets.

While you may not want to let them go, sometimes it's in your best interest to do so to tide you over until you get a new job.

Personal Loans with Simple Fast Loans

Life happens, and if you've found yourself out of a job and facing big expenses, then Simple Fast Loans can help you get back on your feet with their quick application process, loan amounts from $200 to $3000, and instant loan decisions.

Your loan will be paid off in installments for a set period and can be used for just about anything to help you get back on your feet. So, if you're struggling to stay afloat while recently unemployed, rely on an online personal loan from Simple Fast Loans and apply today!