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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 SimpleFastLoans' online form today.

Finding your footing again after a financial fallout can be difficult, but thankfully, SimpleFastLoans 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.

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. Personal loans and installment loans can have easier requirements for getting them, and you might still be able to use them.

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 takes on the responsibility of paying off the loan if you can. 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 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 SimpleFastLoans

Life happens, and if you've found yourself out of a job and facing big expenses, then SimpleFastLoans 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 a personal loan from SimpleFastLoans and apply today!

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