The Best Loans for the Unemployed from Direct Lenders
One of the many difficulties an unemployed person experience is a seeming inability to mobilize funds. Apart from the mental block to approach for loans for the unemployed people, the picture presented by the giant lenders in the financial world complicates things further. If you, at the moment, happen to be unemployed, the best recommendation would be to look beyond the screen to find a world of opportunities to come out of your financial distress.
How Nation 21 Can Be of Help
Nation 21, a leader in financial services sector, can be one of the best choices for getting loans for unemployed. Nation 21 connects you with the lenders who will be interested in giving you a loan. The best part of it is that there are no complicated processes and the payment is real quick. Apply online through their form at the website and sit back to hear from lenders.
Other options open to unemployed include:
1) With a Co-Signer
One of the primary expectations of a lender is the proof of income of the borrower. Being out of a job at present, you may believe that the situation is complicated. However, you can change the scenario into a promising one. Accept the lenders’ expectations and adapt to it. Here is how you do it.
Since most of the lenders consider applicants with regular income as the borrower’s qualification, you may have a co-signer for your loan. A family member or a friend of yours with a good credit and willing to sign for you will be the right partner for your loan application. The loan amount will be more if your co-signer has good credit history and an impressive income statement.
Though the chances are bright if you have a co-signer, consider the following before you seek help:
- Considering the fact that you are unemployed at the moment, what will be your plan to honor monthly repayments?
- Do you have other commitments that may make this additional loan an unbearable burden?
- What are your prospects of getting a job? Will the income from such job be sufficient to repay the loan?
If you have doubts about any of the above, it is highly recommended to back off from using a co-signer.
Despite the risk involved in cosigning, co-signer signs on the dotted lines for you and hence the best way to repay the co-signer is to honor your commitments and be relieved of the debt as soon as possible.
2) Home Mortgage
If you own a house, you can consider mortgaging your property to avail loan. The loan amount will be higher too thus helping you manage your expenses till you get a new job. However, a home mortgage loan has a considerable risk for an unemployed person. If you still have to do it, remember that:
- Over borrowing can drown you in debts. Hence, borrow the exact amount that you need.
- Only if you are confident about your ability to repay should you go for a mortgage loan? Hence, take into account the income sources you have and also the expenses that may come in the way of honoring your monthly commitment.
- Going for fixed interest rates will be wise as you will not be affected by fluctuations in the interest not in favor of borrowers.
3) Short Term Collateral Loan
In short term collateral loan, the lender gives you a loan against your property as collateral. The property can be a car, Jewel or any other asset. With these loans, you get immediate cash. Also called secured loan, the risk associated with this type of loan is significant, that is, if you fail to repay, the asset is lost forever.
The advantages of getting short term collateral loan include:
- No complicating process involved. Credit is handed over immediately
- The loan amount is higher than in the case of an unsecured loan.
- Low rate of interest
The high risk involved is the disadvantage of getting a short term collateral loan.
4) Debt Consolidation
Consolidating your debts can help you save on your repayments and manage your finance while you are looking for a new job. Debt consolidation loans are available for employed persons. However, if you have other sources of income, you can produce proof of the same to avail the loan. If your spouse is an earning member, you may include the income in the application to be considered favorably for the loan.
5) Pawning Assets
Pawning your assets, anything from land to watches will get you money when in need. Unlike in mortgage loan, where you stand to lose if you default, pawn shops offer a better deal regarding waiting for repayment if you so request and pay your interests up to date. However, the loan they extend for your valuables will most probably be half the worth of the asset.
What If The Outcome Is Unfavorable?
If none of the above recommendations work for you, you can still try alternate ways to get some funds to see you through tough times.
Loan From Family – This is one of the few options available when things don’t work in your favor. Ask help from your family while you are unemployed, put the loan and repayment details in black and white and work towards honoring it.
Sale of Unused Furniture – This is yet another option to try. Selling your unused furniture brings in some cash to save you some trouble.