It is always a task to attain a loan when you’re unemployed because most lenders and creditors prefer borrowers with a stable job and a good credit history. However, it is not impossible for an unemployed person to attain a loan, but they may have to face obstacles and high-interest rates to get it. These are a few options that can help you get a loan when you are unemployed:
Borrowing against your home or life insurance: A Home Equity Line of Credit (HELOC) can be called a credit card with a revolving balance. If you have a good amount of equity in the property and even a little bit of income, this could be an excellent idea. Apart from this, you can also contact the life insurance company and ask them to give you a small sum of money for the time being.
Loans with co-signers: It may be a good idea to try and get a family member or a friend with a good credit history to co-sign your loan. This will increase the chances of attaining a loan as an unemployed person. Even with a cosigner, you need to show some proof of income.
Cash advances: A lot of credit cards offer cash advances. It is a quick and easy way of attaining capital in the form of currency notes. This method may work, but the rates of interest are very high.
Car title loans: If your vehicle has already been paid for, it is a good idea to get a car title loan. This is the kind of a loan in which the company holds the title of the car until the time the loan is repaid.
Pawnbrokers: Pawnbrokers are also an excellent source of attaining a loan for an unemployed person. In this case, you do not give up what you own until the time of repayment. Your last option, when you cannot repay the loan will be to give up on your possession.