Personal Loans for Unemployed People

Needing money when you don’t have a job is a terrible situation to be in. The reality is that the majority of lenders are not going to want to work with you when they’re not sure you can pay them back. So what do you do if you need information on personal loans for unemployed people? Does such a loan even exist? Actually, it does, but there is a right way and a wrong way to go about obtaining one.

The Wrong Way to Get an Unemployed Loan

First of all, don’t fall for scams. You will absolutely come across dozens of ads both on the Internet and probably inside your local newspaper advertising too-good-to-be-true personal loans. Unemployed, desperate people make the best prey because they want so much to believe that they can get the money they need that they’ll fall for anything. You should also try to avoid companies offering unemployed personal loans with astronomically high interest rates if at all possible. If you don’t have a job, high interest loans might be the easiest to obtain, but explore other options first before you agree to pay back twice as much as you borrow.

The Right Way to Get an Unemployed Loan

Shop around. Personal loans for unemployed people are out there with decent terms, but you have to look for them. Go with the lowest interest rate you can find, and if you have some type of collateral to offer up, do it. Having collateral will give you a better chance of qualifying for a loan. If you find a lender with decent terms who is hesitant to loan you the money, see if you can get a cosigner. It might be hard to convince a family member or friend to agree to pay if you don’t, but a person who knows you well enough and understands that your intentions are good might surprise you by agreeing to do it. Just don’t let it ruin your relationship with another person if you ask them to cosign and they decline. You can’t blame people for not wanting to stick their neck out when it comes to an unsecured unemployed loan, especially if they know for a fact there’s no way they could pay back the personal loan. Unemployed or not, you need to keep your word that you’ll pay back the loan if someone does sign with you to ensure the stability of the relationship.