It’s almost impossible to get a traditional bank loan if you don’t have a steady paycheck and a high credit score. They’ll immediately ask for proof of income and employment, and if you can’t show one, your application is denied right then and there.
But that doesn’t mean that you don’t have many options. Here are some of the available loans for unemployed people, so you can raise emergency cash when you need it the most.
Losing a job or dealing with reduced income can make every bill feel more stressful.
If you are looking for loans for unemployed people, start by reviewing your income, essential expenses, unemployment options, payment plans, and ability to repay before borrowing.
A loan may be one option to review during a necessary financial emergency, but it should not automatically be the first step.
This guide explains options unemployed people may consider, what to try before borrowing, how title loans work, and what Nevada Title and Payday Loans, Inc. may review for qualified borrowers.
Quick Answer: What Should You Review First?
Before looking for a loan while unemployed, ask:
- Do I qualify for unemployment benefits?
- Do I have severance, final wages, or other income coming in?
- Which bills are essential?
- Can I request payment plans or extensions?
- Can I reduce or delay nonessential expenses?
- Do I have savings or local assistance options?
- Can I afford repayment if I borrow?
Borrowing while unemployed can be risky because income may be uncertain.
Only borrow what you need and what you can reasonably repay.
What to Do Before Looking for a Loan
Before taking on new debt, focus on the basics.
File for Unemployment if Eligible
If you recently lost your job, review whether you may qualify for unemployment benefits.
Unemployment may not replace your full paycheck, but it may help while you search for work.
List Your Essential Bills
Write down the bills that protect your housing, food, utilities, transportation, health, and job search.
Essential bills may include:
- Rent or mortgage
- Utilities
- Groceries
- Transportation
- Insurance
- Medical costs
- Phone or internet needed for job searching
- Childcare
Contact Bill Providers Early
Contact providers before a bill is late.
Ask about:
- Payment plans
- Due-date extensions
- Hardship programs
- Reduced payment options
- Fee waivers
- Local assistance referrals
Reduce Nonessential Spending
Pause or reduce spending that can wait, such as:
- Extra subscriptions
- Dining out
- Entertainment
- Nonessential shopping
- Upgrades
- Optional travel
Small reductions can help stretch limited income.
Loan Options Unemployed People May Review
Get A Cash Advance On Your Credit Card
Your credit card may have a cash credit line. That means you can withdraw part of your total credit limit from an ATM machine. Some companies also have “convenience checks” that you can deposit to make an over-the-counter withdrawal.
While it’s one of the most convenient loans for unemployed people, since you don’t have to go through paperwork, and can immediately use your credit card to get cash, it usually involves transaction fees. You may be charged a higher annual percentage (APR). So you don’t get surprised when you get your monthly bill, call your credit to find out what their terms are for cash advances.
Get A HELOC
If you own your home or are currently paying off your mortgage, you can establish a HELOC or home equity line of credit.
Essentially, a HELOC is a credit line that’s based on the total value of home equity, or the amount of the money you have already paid towards your property. It has lower interest rates than other loans for unemployed people, but it does take a long processing time.
It’s also significantly harder to get a HELOC approved now since banks have tightened requirements after the COVID-19 economic crisis.
Get A Loan Guarantor
Some banks will allow loans for unemployed people if you are able to provide proof of other sources of income – such as rentals, pensions, etc. – and get a loan guarantor.
A guarantor is a friend or family member who is willing to co-sign your loan, and essentially “vouch” for you. He must have a good credit history and source of income, and be willing to share responsibility for making sure that the loan is paid off.
Unfortunately, co-signing a loan does require a lot of additional documents and processing time— aside from the fact that you’ll have to find someone who can do it! So, it’s not the most convenient or viable loans for unemployed people.
Get A Title Loan For Emergencies
Title loans are one of the most convenient loans for unemployed people for many reasons. Some of those include the minimal requirements, simpler application process, and fast processing time at Nevada Title and Payday Loans. If you need to raise emergency cash right away, this is one of the best options for you.
What Are Title Loans?
A title loan is a short-term, secured loan where you use your vehicle’s title as collateral. This can be a car, truck, or SUV – as long as it is registered under your name, and the title is lien-free. ‘Lien-free’ means it has no outstanding loans or judgments against it.
How Much Can I Borrow With Title Loans?
We here at Nevada Title and Payday Loans allow you to borrow as much as $15,000, depending on your vehicle model and condition. You will find out the loan amount you qualify for during a quick vehicle inspection.
What Are The Benefits Of Title Loans?
There are plenty of benefits when it comes to our title loans. Here are just a few of them:
- You do not need a high credit score. Even if your credit history was affected by issues like bankruptcy or bounced checks, it doesn’t matter. Bad credit, good credit, anyone is welcome!
- Minimal documents and requirements. Most loans for unemployed people will require many additional documents and interviews. It is tedious, frustrating, and time-consuming. However, title loans will only require you to show the vehicle registration, your driver’s license or a state-issued photo ID, and go through a vehicle inspection.
- Much shorter and faster application process. It’s possible to complete the application process and get approval within the same day.
Do I Need To Give Up My Vehicle?
You only have to show your vehicle and the title during the application process. While the title stays with us, the vehicle does not. You can continue using it during the duration of the loan, as long as you follow the monthly payments.
How Do I Apply For Title Loans?
Here at Nevada Title and Payday Loans, Inc.com, we take pride in making our application process simple, easy, and convenient. Here is the step-by-step guide below:
- Go to our website and fill out the simple form. It’s very short, and we just use it to get some information and an initial contact number so our customer service team can personally help you through the application process;
- A title loan representative will give you a call. They will explain the process of getting title loans, including the requirements and the next steps. Feel free to ask any questions! They will also set up a face-to-face meeting at a title loans location nearest you;
- Go to the location for the vehicle inspections. Just remember to bring your documents with you! The loan representative will verify the documents, then check the vehicle to assess the loan amount you qualify for.
- If you are approved for the loan they will go over your loan terms. This is where you can ask any questions you have. Once you understand and agree with the terms, just fill out a few papers and go home with your cash.
Find out more about title loans and other loan options on our website. When it comes to loans for unemployed people, there are actually viable options out there. Just take the time to do your research and find what works best for you.
Review Your Options With Nevada Title and Payday Loans, Inc.
Loans for unemployed people should be reviewed carefully.
Start with unemployment benefits, payment plans, hardship options, assistance programs, and lower-cost alternatives before borrowing.
If you still need to review loan options, Nevada Title and Payday Loans, Inc. can explain current title loan, payday loan, and signature ins
Frequently Asked Questions
Can I get a loan while unemployed?
You may be able to review certain loan options while unemployed, but approval is not guaranteed. Make sure you understand how repayment will fit your current income situation.
What should I do before borrowing while unemployed?
Review unemployment benefits, payment plans, bill extensions, assistance programs, savings, and lower-cost options before borrowing.
Can I get a title loan while unemployed?
A title loan may be one option to review if you own a qualifying vehicle outright and have a lien-free title in your name. Approval is not guaranteed.
What do I need for a Nevada title loan?
You generally need a driver’s license or state-issued photo ID, a lien-free vehicle title in your name, and the vehicle for inspection.
Can I keep driving my vehicle?
Borrowers can generally continue driving their vehicles while repaying a title loan. The vehicle title still secures the agreement.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.
