Are Unsecured Unemployed Loans For Real?

Many unemployed people are in dire need of money for various financial emergencies, and the reality is that the average jobless person cannot realistically obtain a low cost personal loan. Lenders need to know that borrowers have the means to pay them back. People without jobs might be tempted to apply for unsecured unemployed loans, but this might not always be the best option.

Problems with Loans for the Unemployed

According to Washington State’s Attorney General AG McKenna, many lenders advertising unsecured unemployed loans are fraudulent. Organizations offering quick loans for unemployed people often want nothing more than to take advantage of people who are both jobless and desperate for fast cash. Fortunately, borrowers can educate themselves on differentiating between scams and honest lenders.

Identifying Lending Scams

The Federal Trade Commission advises potential borrowers to avoid any lending companies that ask for fees before processing applications or fail to disclose all their rates and fees. It should also be a warning flag to borrowers if lending companies choose to conduct business over the phone rather than in person, particularly if the borrower’s confidential information is requested in this manner. Honest lenders have nothing to hide and are usually respectful and protective of their customer’s personal details.

Legit Unsecured Loans for Unemployed People

The number of legitimate loans for the jobless are few and far between, but they do exist. However, loans like this generally come with very high rates of interest. Sometimes jobless people with nothing to put up for collateral might have to resort to getting another person to cosign with them for loan approval, and this isn’t always enough. Veterans who are jobless might consider checking into SBA loans. The SBA (Small Business Administration) usually gives priority to veterans in need of funds for various reasons, particularly if the money is to be used for starting up a business.