Getting a Loan Without a Job

If you've lost your job and suddenly find yourself in a financial fix, you might be surprised to know there are a few ways you can borrow money to help make ends meet until your situation turns around. Unemployed loans can be found if you know where to look, but you'll need to meet various lender requirements before being approved – including providing proof that you'll be able to pay the loan back. This usually means having a strong credit score, although this isn't always the case. Let's take a look at some of the ways you can qualify for a personal loan while you're unemployed.

Proof of Other Income

Loans for the unemployed are much more likely to receive approval if the applicant can show the potential lender that they have other forms of income. These can include child support and alimony, social security payments, disability payments, stock dividends, pension funds, and residual income or royalties from business investments. Proof of a steady income from a source aside from your job can help you secure an unemployed loan, because your lender can see that you'll have a means of repayment. When filling out your loan application, be sure to list all your forms of income.

Property and Collateral

With limited income and no steady job, your chances of receiving a personal loan are very slim. However, you can usually help secure a loan by offering a piece of property as collateral. In many cases, the lender will accept a vehicle, residential or commercial property, expensive jewelery, boat or camper, or anything else of significant value as collateral for a personal loan. Keep in mind that you must own the property out right in order to present it as collateral for a loan. The lender will typically lend you money up to the value of the property, which will be assessed by a professional property appraiser and reported to the lender.

HELOC (Home Equity Line of Credit)

If you own your own home, you're much more likely to receive approval for a loan. One way you can obtain such a loan is through a home equity line of credit, also known as a HELOC. This method is an easier way to use your home as collateral for your loan, but make sure you can pay it back before taking out this type of loan. It's not worth losing your home over. After you repay the loan, you can use the home equity credit again the next time you need it. This may not be an ideal solution, but it's one of the best ways you can get a loan without a job.

Credit Card Cash Advance

As an alternative to getting unemployed loans, try taking out a cash advance through your credit card. Most issuers will allow you to make a cash advance for a portion of your line of credit. The average APR will be extremely high if you do this, but if it comes down to being evicted or having utilities disconnected, it may be worth it for you. Always weigh the benefits and disadvantages before getting a cash advance, and check with your credit card company to find out how much interest you'll have to repay.

Other Methods

If none of these methods for obtaining loans for unemployed people apply to you, then you only have a few more options – get a loan from a relative, or pawn some of your belongings for quick cash. Getting a loan from a relative can cause the relationship to suffer, so if you must go this route, make sure to get the terms in writing and sign an agreement stating that you will repay the loan along with the terms for repayment. Agree to pay interest to show the lending party that you fully intend to repay. Pawning your electronics, jewelry and other valuables may not appeal to you, but it may be necessary during tough times. Remember that you typically have 30 days to return for your goods before they're resold and resort to this method only when absolutely necessary.