Usually, traditional lenders look at your annual income, debt-to-income ratio, payment history, and credit score when deciding on your loan application. Online loans for bad credit skip the credit report check and require individuals to be of legal age, have American citizenship, have an active bank account, and provide proof of income. Some other criteria may appear depending on the type of cash loan for which you apply.
The term “source of income” needs to be specified in this case. It is not only a paycheck from work that may count, but many lenders may consider the following as a trustful source of income to let you qualify for a loan:
- Rental property income
- Partner income
- Disability payments
- Unemployment benefits
- Interest and dividends
- Social Security income
- Pensions or annuities
- Child support
- Enough funds in a savings account
If your alternative source of income matches any of the above, you may already qualify for a loan. Moreover, even if you have a bad credit history, you can easily get approved for online loans. The providers of loans for unemployed people perform no credit check, so your chances of getting an emergency loan are even higher.
How Can You Get a Loan without a Job?
If you choose to get a loan online, even without a job, the process of applying for loans as well as requirements are the same. Individuals who decide to get cash advances online can apply in a few quick and easy steps. You fill in the loan application on our website, and we immediately send your request to our network of trusted lending services.
Some lenders will approve your application, and we will connect you with the most suitable one. The lender will present you with the loan contract, including the apr and any other interest rate. If all is clear, both you and the lender will digitally sign the contract.
The lender will transfer the money to your bank account as soon as the next business day, and you will be able to use it right after. Later on, you will have to return the loan amount within the agreed time frame.
Can You Get a Loan without Proof of Income?
All lenders require at least some proof of income. It can come from a paycheck from a workplace, or it can even be money you get from alimony, pension, child support, social security funds, or any other alternative to a traditional salary. In case you cannot provide any of these, you will have to look for an alternative way of getting a loan.
Usually, secured loans do not require proof of income. In the case of those, you put some of your assets as collateral. They also normally offer lower APR and fees. However, be aware that lenders of secured loans will seize the collateral you put up in case you do not complete the loan payments on time.
Alternatives to a Traditional Personal Loan While Unemployed
When you have no steady job, traditional lenders, such as banks, are highly unlikely to approve you for a loan. There are several alternatives to traditional loans for those without a job, which may suit you better when you need emergency cash.
Home Equity Line of Credit (HELOC)
In simple terms, a home equity line of credit lets you borrow against the equity of your home. The calculations are done by subtracting the balance of your mortgage from the amount your property is worth. You have access to the money for a pre-established amount of time. On the bright side, the option is not based on your income. However, your credit score has a saying in the matter, as most offers require at least a 680 credit score. If you choose this option, be very punctual with the repayment, so you do not end up losing your home.
Car Title Loan
A car title loan gives you access to emergency cash while using your car as collateral. These loans have the benefit of minimal approval criteria; as long as you have a vehicle to set as an asset, the chances are high that you will get approved for a loan without a job and with bad credit. The downside is the high APR and additional fees lenders charge for financing cash loans. If you do not pay back on time, your car will no longer be considered your property.
Credit Card Cash Advance
A credit card cash advance is a short-term loan that requires no credit check or steady income. You can get this advance directly from your credit card as a short-term loan that requires no credit check or regular income. You can get one directly from an ATM, using just your credit card and its identification number. Overall, it is a fast way to get a loan without a job, but borrowers should consider the high-interest rates, additional costs, and the fixed fee for each cash advance that credit cards impose.
Payday Loan for the Unemployed
A payday loan is a short-term, unsecured loan with no paperwork that you take quickly and repay on your next paycheck or within one month. Payday loans for unemployed have the same terms as simple online cash loans, and the only difference is the type of income you provide. You can take up between $100 and $1,000 and repay the sum later.
Even though the sum may vary from state to state, it is easy to get the desired loan amount with an alternative income and a bad credit score. The perks of payday loans are that the whole process takes place online, and you receive an immediate loan decision and your money as soon as the next business day. However, there are some downsides to it, too, such as the rather high APR and late payment fees.
Pawnshop loans are typically short-term loans you can take out against an item that you have in your possession. You might know them as collateral loans, or secured loans they’re all names for the same thing: a loan you take out using an item of value as collateral. The idea is that if you don’t pay back the loan, then the lender can sell your item and use the proceeds from that sale to pay back what you owe them.