Guide to Personal Loans for the Unemployed
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Can You Get a Personal Loan While Unemployed?
Personal Loan Basics: What Are Personal Loans?
Can You Apply for a Personal Loan While Unemployed?
Can You Apply for a Personal Loan as a Student?
Personal Loan Options When Unemployed or as a Student
The lender may require you to have a cosigner. You may be approved for less money than you asked for. The term of the loan may be shorter, for instance, 24 months instead of 36 months, because a lender may see this as less of a risk. You may be approved at a higher interest rate than if you were employed.
How to Qualify for a Personal Loan with No Income
Benefits and Risks of Taking Out a Loan While Unemployed
Benefits of Taking Out a Loan While Unemployed
You can use the money to pay bills, keep in a savings account for an emergency, or to start your own small business. The interest rate on a personal loan may be less than credit cards. You can consolidate multiple debts with a personal loan, which can help you save money if you’re approved for a lower interest rate than you’re paying on your credit cards or other bills. It may also simplify your budget by having just one one monthly debt payment instead of several.
Risks of Taking Out a Loan While Unemployed
If you can’t make timely payments or you miss payments altogether, the potential consequences to your credit can be significant. If you don’t qualify for a favorable interest rate, a loan may not be helpful in the long run and you might want to consider alternatives. You may not qualify without a cosigner.
Benefits and Risks of Personal Loans During Unemployment
What Are Some Alternative Options?
Personal Line of Credit
Home Equity Line of Credit
Alternative Financial Relief Options for Students
Student loans can be federal or private, each having their own approval process and pros and cons. It’s important to note that federal student loans offer repayment options and federal benefits that may not be available with private student loans. Federal student aid may also include grants and work-study. Scholarships and grants are available through community groups, nonprofit organizations, university alumni groups, professional associations, and more. Checking with your school’s financial aid office is a good first step to researching these opportunities that typically do not have to be repaid. Emergency student aid can help students pay for housing, food, and other essential needs.
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