Unemployment can be financially devastating, and a quick personal loan may be your only alternative to get you back on your feet. You can always seek quick loans through any of the reputable loan matching services, such as Viva Payday Loans.
However, most loan lenders are always skeptical about giving out loans to unemployed persons. Usually, they’ll ask for proof of income and scrutinize your credit profile.
This guide will walk you through everything you need to know as an unemployed person seeking a loan to any payday loan lender.
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Factors Lenders Consider When Borrowing Without a Job
Loan providers consider various eligibility requirements when processing loan applications. Essentially, they are trying to determine the likeliness of repaying your loan in time. That said, below are some of the factors that lenders will consider before issuing loans to the unemployed:
1. Income
The unemployed will often find it hard when applying for a payday loan. However, you’ll still be eligible for loans if you can prove your sources of income, such as:
- Spouse’s income: Some lenders allow customers to include their partners’ income details in their loan applications. They assume that you can use your spouse’s income to repay your loan. However, you may be required to add your partner as your co-applicant
- Retirement benefits: After retiring, you might use your income from the social security benefits to access loans
- Other payments: Other reliable income sources such as child support and alimony can be used when trying to access loan
- But heads up: Lenders are prohibited by the Equal Credit Opportunity Act from forcing borrowers to reveal some sources of revenue, such as alimony, public assistance, and child support.
- Investments: Your ability to profit from investments such as real estate can be used as proof that you’ll pay back your loan. While the one-time capital gain may not be sufficient, regular revenues from rental properties or dividends are often accepted.
2. Debt-To-Income Ratio
The debt-to-income ratio is another critical factor lenders will consider determining if you can repay your loan. This can be expressed by dividing the net monthly debt payable by the gross monthly revenue. Generally, your gross income is the whole salary amount before deducting insurance and taxes.
A lender may deny you a loan if your debt-to-income ratio is very high, as this is an indicator that your income cannot facilitate your daily expenses and service the loan simultaneously.
3. Credit History
Credit history is also an essential aspect that lenders determine whether you’re eligible for an unsecured loan. Typically, lenders will analyze your credit score and track your payment history in the credit reports.
The consumer reporting bureaus must keep accurate information on all borrowers by the federal Fair Credit Reporting Act. While excellent credit won’t completely compensate for lack of income, it could help you acquire a loan.
How Do I Qualify for a Personal Loan in the US Without a Job?
1. Decide How Much to Borrow
When applying for loans, please remember that you will be required to repay the loan plus an interest charge.
Furthermore, you are under no obligation to ask for less than you need since you may find yourself forced to turn to more expensive loan sources in a period of emergencies if you do. To prevent accumulating excessive interest, borrow the amount you need to avoid incurring it.
Moreover, be sure you’ll be able to repay the loaned amount. It is worse going into debt when the most intelligent course of action is right with you, waiting till your circumstances improve.
2. Check Your Credit
Examine your credit scores and get current credit reports from credit reporting agencies—Equifax, Experian, and TransUnion. Kindly do this before applying for a personal loan since personal loans are strongly reliant on your credit scores.
By accessing AnnualCreditReport.com once a year, you can get a free credit report from the three leading reporting agencies.
Free credit scores, credit reports, and many more financial services are available through sites like Credit Karma. Some credit reporting bureaus and other internet merchants may also provide you with your credit score for a fee. Others offer a free trial before charging a monthly subscription.
Can You Prequalify For A Personal Loan?
Yes, you can prequalify for a personal loan. Find out lenders that provide a prequalification procedure to know the loan rates and conditions before submitting a formal application. Prequalifying is a no-risk alternative that uses just a soft credit check, which means your credit score will not be affected.
You’ll need to fill out a brief questionnaire to discover whether you’re prequalified. These will include your name, Social Security Number, address, yearly income, the amount of loan you need, and the purpose for obtaining a loan.
You won’t be asked for any extra paperwork at this point; the lender will request any essential supporting papers once you’ve chosen to proceed with an agreement.
How to Apply for Personal Loans
Step 1: Visit Viva Payday Loans
Go to Vivapaydayloans.com and select “Apply Now” in the upper right corner to get a simple layout.
Step 2: Complete The Application Form
The service will provide you with an application form to complete. Next, enter your official name and personal information and your wages and bank account information.
Step 3: Get Your Decision
It will only take less than two minutes to get a report of your application approval or rejection. You should keep on the page until you have received the response.
Step 4: Receive Quick Loans at Viva Payday Loans
You will get an agreement form via email after your application has been authorized, which you must go through before signing. You must also be aware of the terms and conditions presented to you. You should receive your quick loans at Viva Payday Loans once this process is complete.
Step 5: What if I’m Not Approved?
When your request is turned down, you can go for other loan options such as Heart Payday, Credit Clock, and many more.
Besides, you don’t have to be worried about your credit history since these providers never run a full credit report.
Bottom Line
Personal loans are usually not backed by collateral—implying that you won’t need any security to obtain the loan. Instead, you’ll be granted the loan based on your financial record, including your Fico score, earnings, and other lender conditions.
When out of work, obtaining a personal loan is more complex; but still possible. Nevertheless, you have to make an appropriate consideration as taking out a loan that you can’t afford to pay back may compound your current financial difficulties.
