Loans For the Unemployed: How to Secure a Loan Without a Job

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With unemployment hovering near record lows, being out of work isn’t something that’s talked much about these days. Just because unemployment is low though, doesn’t mean that it doesn’t exist.

Today, millions of people are looking for work and can’t find it within the realm of their expertise. Those people, despite not getting a steady paycheck, still have bills to pay.

Common sense would dictate that, if you have a bill and don’t have money, you have to take out a loan to bridge the gap. The truth of that matter is though that the vast majority of loan products out there request proof of employment.

How then can a person that’s out of work get their hands on loans for unemployed?

Below, we share a few options.

1. Look Into Government Offerings

There are some government options available when it comes to managing unemployment.

First and foremost, there’s collecting “unemployment checks”. Unemployment checks are not loans. They are financial awards intended to help you make ends meet which are free and clear of any repayment obligation.

Applying for unemployment and collecting the benefits that you’re entitled to should be something that you do before seeking loans for unemployed.

After you’ve looked into your unemployment options, we recommend seeing if your local government offers any loan/assistance programs for low-income people that you might be able to take advantage of.

Options will vary from community to community.

2. Discuss Your Needs with Family

Another great resource when it comes to getting financial help is your family.

We understand that it can be hard to share your financial concerns with loved ones. Still, your family may be one of the few groups that will offer you a no-interest loan with zero strings attached.

Always be wary when borrowing from family members since a missed payment could cost you your relationship.

3. Go to a Pawnshop

Almost every community has a pawnshop. These shops make a living off of offering people collateral-backed loans.

A collateral-backed loan (or secured loan) is a loan where you borrow against the value of a physical object. If you don’t pay your loan back in time, the object that you’ve borrowed against will be kept by the lender.

Since property protects pawnshop loans from you defaulting, they won’t inquire about your credit or job history.

4. Take Out a Secured Loan From the Bank

Some banks offer secured loans just as pawnshops do. So, if the idea of going into a pawnshop to borrow money makes you feel uneasy, try walking into your bank instead.

Banks tend to be more scrupulous than pawnshops in that they may want to run your credit and will only accept collateral that meets certain criteria.

5. Browse Online Lending Products

With the exploding popularity of the internet has come an exploding amount of online lenders.

Be aware that many of the lenders that are solely based online are not worth getting mixed up with as they tend to be more aggressive than local banks when it comes to interest rates and fees.

That’s not to say though that there aren’t good online lenders out there, some of which may offer fair unemployed loans.

Run a quick search to see what your options are in the online lending arena. Just be sure that you read the terms surrounding your loan carefully before signing anything.

6. Check Out Kiva

Kiva is a website that was created to help business owners in foreign countries get no-interest loans. The platform has now expanded to also allow domestic business owners to request funding.

If the loan that you’re seeking is to get a business venture off of the ground, set up a profile on Kiva to make a request.

Loans funded through Kiva have no strings attached and no angles of financial gain for Kiva given their non-profit designation.

7. Get a Cosigner

A cosigner is somebody that puts their name on a loan alongside you. This person typically has good credit and a stable work situation.

With a cosigner on your loan application, if you were to default on your loan, your lender could legally go after your cosigner to collect. Given that risk, cosigners are usually people that know you well and trust your commitment to keeping your word.

Keep in mind that cosigners make it so you don’t have to specifically look for loans for unemployed. Lenders are willing to give borrowers with no job access to a broader suite of better products so long as their cosigner is well-qualified.

8. Refinance Your House

If you own a home, stop your loans for unemployed search. In almost all cases, you’ll get a better deal by borrowing against your house.

When you refinance, you sell a portion of your home back to the bank. The bank then writes you a check for the piece of home that you’ve parted with and you pay them back in installments plus interest (just like you would with a standard mortgage).

Closing Out Our Loans for Unemployed Options

Loans for unemployed people can be hard to come by. With a little bit of creativity and grit though, we have no doubt that you’ll be able to locate a lender that’s willing to offer you the money that you need to work your way out of your current financial situation.

Always keep in mind that getting loans will not fix your broader money problems. If you need assistance with money management or employment-seeking, browse free options that may exist in your community which can assist to those ends.

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