Even if you are not currently working, you can find and get a loan!
You have certainly heard the news, or experienced it yourself; the number of people looking for work is hovering at right around ten-percent. Senior government officials have said that regular employment levels may not return for several more years â if at all â and that leaves hundreds of thousands of people like you and me looking for loans for the unemployed.
While a person may not be heading to an office or a factory, there are still emergency situations that arise; whether it be an unexpected car repair or a medical need, the demand for short-term and immediate loans has not decreased. But for people who don't have a regular job or source of income, what is the process in finding someone to loan you money?
If you are one of the millions without work, but still in need of fast loans for the unemployed, there is good news! Though it may be a bit harder than normal, you can still find places that will loan you money for your need. As you may expect, there will be a higher than average interest rate you will pay on the loan, and there will probably be very stiff penalties if you don't pay it back, but rest assured there are ways to get loans even if you are not working.
One of the terms you will hear thrown around the "emergency loan" world is unsecured loans for the unemployed. This is simply a way to describe a loan that you may be able to get, but don't have to give up any "collateral" or personal belongs in order to receive. A secured loan is the opposite, and may require the deed to a car or other high-value item you do not owe money on. In the case of a secured loan, you would automatically give up ownership of this item should you not be able to repay the loan on time. Obviously, an unsecured loan is much harder to get, even if you do have a job, but again, not impossible.
There are options for you to obtain a loan, especially if you have a friend or family member co-sign for a loan with you. This kind of borrowing money is often called personal loans for the unemployed, and is usually handled through a traditional bank or financial institution. There are several things to keep in mind however, including how a potential inability to pay back the loan will affect your relationship with whoever co-signs. It has been said many, many times; don't ever go into business with family if you like them. Keep in mind that asking someone you love to trust you to pay back a loan is a lot like going into business together. Make sure you are "ok" with the possible changes in relationship strength if you go this route.
Speaking of family and friends, another popular cash loan for the unemployed option is borrowing money directly from a family member, and not having to involve bank or other business. Again, this has its risks, but also has rewards as well. As was mentioned earlier, any loan you get from a bank or other business will have high-interest attached to it. This probably won't be the case when getting a quick loan from your parents or brothers or sisters. While you don't want to be gouged to pay a huge interest payment, it is still respectable to pay a little more back to your lender than they originally gave you. Especially if borrowing cash from a friend, doing this will provide them a financial "thanks" as well as keep it on a somewhat professional level.
If getting a quick loan from someone while you are out of work is just not an option, and a traditional bank won't give you the money, one of your last options may be payday loans for the unemployed. You have more than likely seen the many payday loan shops in your area and giving loans to people who have no other way to get money fast is why they operate. This is exactly the kind of place where you will more than likely find interest rates in the thirty-percent and above range. These kinds of rates are common even if you are only borrowing the money for a few days or weeks. In many states the payday loan industry has been regulated to a more reasonable loan interest rate cap, but still charge heavily for the right to borrow money, especially for people without a job. When you borrow money from a payday loan company or shop make sure you KNOW you will be able to pay it back on time. These operations will be vicious in ruining your credit, taking you to court and going after anything you own in order to make their money back. For many people getting a loan without a job at a place like this should be an absolute last resort.
In summary there ARE places to get cash even if you do not have a job, but clearly it is a bit harder and can cost a bit more due to no employment. Remember to think about all options to make money before you take out a loan; do you own an extra TV you could sell? Do you have a particular talent you could turn into short-term cash? Do you have friends that may need some handy work done around their house, and would be willing to help you out? Thinking through these kinds of options will help you determine how badly you need cash quick, and the best way to secure it.