How to Get Loans for Unemployed People

Loans for unemployed people can relieve some of the financial strain on your family after the loss of a job. There are numerous ways unemployed people can receive a loan, and each have their benefits and disadvantages. However, there is help out there, especially if you have collateral. Even if you don't, there are still a few loans for the unemployed that might be available to you.

Instructions

1. Make a down payment of at least 25 percent or more. Many lenders will offer loans for the unemployed without heavy documentation or proof of income if you're able to put enough money down. If you have a lump sum of money to work with, talk to your lender about using it as a down payment for a potential loan.

2. Use home equity line of credit to get loans for unemployed people. This type of loan, also known as a HELOC, is similar to having a credit card with a revolving balance. If you own your home, you can use it as collateral for a loan, even if you don't have a job. Once you repay the loan, the credit will become available to you again the next time you need it. It can help you get through a tough financial time, particularly while you're unemployed.

3. Get a debt consolidation loan for unemployed people. These loans can help pay off debt more easily while you're without a job, although you won't actually receive any cash. Go to a debt management firm in your area and inquire about loans for the unemployed to see what's available to you. This is a good way to get your creditors to leave you alone in a financial crisis, get a lower rate, and get any late fees terminated.

4. Get a loan from a family member to avoid high interest rates and long application processes. This may be the easiest way to get a loan for the unemployed, if you have a willing family member. Speak to a relative and set up a repayment plan, sign a contract, and make a gesture of your willingness to repay their kindness.

5. Get a credit card cash advance as an alternative to loans for the unemployed. If you have a valid credit card, many companies will allow you to use some of your credit limit to get a cash advance. This can be a great alternative to loans for the unemployed, although the average APR will be high. If you're in a pinch, and you're unable to find a lender for a personal loan for the unemployed, this might be a good short-term solution.

6. Visit a pawnbroker or pawnshop to get loans for the unemployed. If you have valuable possessions, such as jewelry or electronics, you can pawn these items for a portion of their worth. You'll be given a certain amount of time to repay the loan, with a small amount of interest added on. This is a great short-term solution for financial difficulties, and won't result in bad credit if you have to default on the loan.

Tips & Warnings

• Regardless of the type of loan you receive, make sure you make your payments regularly. For loans where you have placed possessions up for collateral, you risk losing the items if your payments are not made. Loans for unemployed people are out there, and can help you in your time of need, but act responsibly and make sure you'll be able to repay.

• Never borrow money from a family member, whether you're unemployed or not, without signing an agreement and getting the terms on paper. This can be the cause of serious discourse within the family, so make sure the transaction is documented thoroughly.