Gabe Douek

Editorial Disclosure: The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone.

Making ends meet is challenging for everyone, especially in these tough financial times. If you find yourself living paycheck to paycheck, struggling to make ends meet, and generally drowning in bills or debt, you are among the majority of Americans. When you are walking such a financial tightrope, what happens when you suddenly lose your job and you have all of those bills waiting to be paid?

Sometimes, all you really need is a fast loan to help get you by until you can find work again. But how do you get a loan when you have no job? Don’t be so quick to assume that no bank or institution will lend to you when you don’t have an income. There are workarounds. Here is some advice from the experts and some options for the quick cash that will help you get through what could be the most stressful time in your life.

Three Factors That Could Affect Your Chances Of Getting A Personal Cash Loan

Asking for a loan is a nerve-wracking and often overwhelming experience. There are three main criteria that will affect if you can qualify for a loan and what kind of options you have. The more you know about these factors that the lending institution will be taking a look at, the better prepared you will be to answer any questions. The more prepared you are, the more likely you are to impress your lending agent that you are serious about doing business with them.

Your Debt

Most Americans have debt, and more than half have what they describe as extreme debt. The bank will need to look at your debt when deciding on how much they can help you because your debt is directly proportional to the level of risk you will be. Don’t panic. Of course, the less debt you have, the more appealing you will be as a client, but even with bad credit, you can still qualify for many different lending opportunities. 

Your Income

If you don’t have a job, that doesn’t mean you have no income. Most lenders will ask about any financial help from family or friends, unemployment, child support, or any other source of regular income you receive. There is hope for you to get a personal loan, even if you are still looking for work and especially if you have low debt and good credit.

Your Credit Score

Credit Score – the two words strike fear in the hearts of most of us. The thought that one little number can have such an extreme impact on our lives is nothing short of terrifying, but it isn’t as dire as it seems. Of course, you will have better chances if you have a better score backing you, but you can still find a lender even if you have bad credit. 

Be Prepared. It’s Not Just The Scout Motto

It’s also a great way of improving your chances of getting a loan. You will have a lot better luck if you have all of your information together. Make sure you have all of your financial details ready, including records of your debts, a list of all sources of income you have, and a record of any titles or ownership of anything that might make good collateral (the best sources are cars and homes).

You also want to make sure that you have done your research before you talk to any financial institution. There are many lenders out there who are only too happy to scam those who are most desperate. Before you deal with anyone, make sure they are registered with the Better Business Bureau, and take a look at what others have to say about them. Client ratings and reviews are a great indicator of how much you can trust a company.

Explore All Your Alternatives First

When you are stressing over whether or not you’ll be able to keep a roof over the heads of you and your family, it can be hard to believe there are any options. The pressure can be crushing when you think you have nowhere to turn. It’s time to stop worrying because there are a lot of options for you no matter what your credit situation is.

Borrow from family or friends: Family and friends are a great source of support in difficult times and that may be the best option for you. Your family may be able to help you out more than you realize and lenders will want to see that you have left no stone unturned. Your family probably also won’t check your credit score or charge you a high-interest rate if you need a small loan.

Pawn Loan: Pawning an item can get you some fast money if you have something valuable to offer but be aware that you could lose whatever you pawn if you can’t repay the loan. Don’t pawn something that you don’t think you could part with if you think there is any possibility that you won’t be able to pay.

Church Loan:  It is a little known fact that some churches have a fund for helping their parishioners who have fallen on tough times. Your community can be a great source of support for you, so make sure you look into what assistance is available to you.

Government loans: The government has many programs designed to offer small loans to students or employees who are retraining for a new career. You need to be registered in a program, but these government loans could be a lot easier to get than loans from a private lender or a bank.

Get a Co-Signer: Having a co-signer can help you out a lot if you have bad credit or high debt. If you have someone in your life who has good credit and is willing to vouch for your ability to make your payments. Banks will be more likely to approve a loan with a co-signer because there is an even greater guarantee that they will be sure to get their money.

✰ MONEYTIME EXPERT INSIGHT: You need to be careful to make sure that you make your payments regularly and on time, or the bank will go after the co-signer for the money owed. This could not only affect your credit rating negatively, but it also puts them and you in a very bad situation that could damage your relationship.

Microlending: A microlender is an individual who offers loans to applicants rather than a bank or a lending institution. There could be many different types of help you can get such as small personal loans or kickstarters to help start a small business. Interest rates vary by lender, but rates can be very high to the high-risk level. These loans are usually in high demand so the competition can be fierce. Having a good credit rating will help you get approved.

Payday Loan: Like most banks, these businesses consider all sources of income. They are more likely to approve you for the loan you need than a bank would be and you could possibly get the cash in your hands faster, but interest rates can be some of the highest anywhere. You can easily get $100 – $5000 even with bad credit but you will be asked for a post-dated check for the full amount plus interest on a set date, or may even need access to your bank account to set up an automatic withdrawal.

✰ MONEYTIME EXPERT INSIGHT: Payday loans are incredibly helpful when money is tight, but they can leave you in a hole you can’t dig your way out of. Make sure to only borrow what you absolutely need and never more than you can afford to pay back when the loan matures without taking out another.

Online Installment Loans: These loans are a great option for most people who need fast loans with bad credit. Approval can be given instantly and the money can be deposited in your bank account within 24 hrs. so they are great in an emergency. Your credit rating could determine how much you can get or how high an interest rate you will be offered due to the risk level.

The good news is that there are sites like Excel Online Loans or 1st Premier Lending that are available to you even if your credit is bad. These loans can have a high-interest rate, but the fact that the payments are made in installments makes it much easier to repay the loan than a payday loan would be. 

✰ MONEYTIME EXPERT INSIGHT: Beware prepayment fees. Many institutions will tack on a hefty prepayment fee if you want to pay the loan off early to save on high-interest fees. Not all lenders will charge these fees though, so it is important to ask about that beforehand and take it into consideration before you sign any agreement.

Title/Collateral Loan: These are loans that you take out against your property, vehicle or anything else with the equivalent value. These loans are helpful because you can get up to a quarter of the value of your collateral and they are easier to get because they are secured. The downside is that they still come with a steep interest rate, though usually lower than what you will get from a payday loan and you can also spread payments out over a period of time.

Lendingtree offers some great mortgage solutions with competitive interest rates and a quick and easy application process that can be taken care of online.

✰ MONEYTIME EXPERT INSIGHT: Any extra debt you take on will put even more stress on your already stretched-thin finances. Missed payments can do serious damage to your credit score or even result in the loss of your property. 

It is important to remember that you have options when it comes to your financial needs, especially during such a difficult time as when you lose your job. If you just keep your wits about you and DO NOT PANIC, you will be able to take care of things with a lot less stress and you will get a much better deal in the end. The worst thing you can do to yourself is to accept a bad offer because you didn’t know you had options.

If you are a bad credit risk, you may have to pay a slightly higher interest rate, but the peace of mind that comes with knowing the bills will be paid is priceless. There is an increasing number of lenders out there ready to do business with you, so do your homework, know your lender, and compare multiple offers. With enough thought and a little perseverance, you will know you are getting the very best deal you can possibly get. We all need a little help from time to time; the trick is just knowing where to look for it. We are in your corner, so happy lending and good luck.

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