There are many situations in life where you might need a personal loan. However, if you’re unemployed and you also have a bad credit score, you might feel like there are no options for you when you need money to pay bills, buy a car, or start a business.
Fortunately, that isn’t true! You can get approved despite your complicated financial history. In this article, we’ll cover everything you need to know about obtaining loans for unemployment and with a bad credit score, regardless of your situation.
Who can get a personal loan while on unemployment?
The quick answer is that it’s hard to get traditional loans for unemployment and bad credit because most vendors are looking for high credit scores, proof of income, and good credit.
However, there are some alternative loan options that will count your unemployment benefits as the income proof you need, allowing you to get the cash you need now.
How do you get an emergency loan?
A traditional personal loan requires that you have a great credit score, steady income, and a full-time job in order to qualify. If you don’t have these things lined up, then you are considered a liability to financial institutions, which is why more unemployed people with bad credit will most likely not qualify for traditional personal loans.
Thankfully, the MoneyLion Credit Builder loan offers a great alternative to traditional personal loans. The Credit Builder Loan can help people secure loans for unemployment when they have low credit scores.
With this loan, you’ll be able to get the funds you need while still saving up and increasing your credit score at the same time. It’s a win, win, win! Apply for the Credit Builder loan and receive a competitive rate without any hard credit checks.
You’ll receive a portion of your funds right away, while the rest will be saved in a Credit Reserve Account in your name. Once you pay off the loan in full, you’ll receive the remaining loan amount while watching your credit grow simultaneously!
How much can you borrow?
With the MoneyLion Credit Builder loan, you can borrow up to $1,000 at competitive rates, along with flexible payment plans and no hard credit checks. These incredible loans for people on unemployment can make it possible for you to get money that lets you cover your expenses and financial responsibilities.
Meeting loan requirements
When applying for traditional loans, you’d need to have a great credit score, proof of savings, and bank statements, while also having to sign a bunch of paperwork. This can be hard all around, especially because the average score credit for Americans is 710, and most traditional loans will not accept anyone with a score lower than 630.
Your credit score will determine the rate and the terms you’re offered alongside a traditional personal loan. But with MoneyLion, the process of getting approved for unemployment loans is simple.
All you have to do is sign up for an account with MoneyLion and link it to your checking account. We’ll scan your account and perform a soft credit check to immediately determine if you qualify.
Finding the right loan company
When you are unemployed, you might need to borrow money. However, a traditional loan won’t always approve you for the money that you need because of your lack of income.
But thankfully, there’s still an easy way to get the funds you need. MoneyLion cares about providing personal loans for people on unemployment, even if you have low credit.
Benefits of getting a personal loan
Personal loans offer a lot of benefits, the biggest one being that you’ll have the funds to pay for the things you need right away. However, credit builder loans are an even better choice because not only do you get money to buy the things you want, but a credit builder loan will also increase your credit score at the same time.
What happens to loan payments if you find a job?
With a traditional loan, your payments will likely increase as your income increases. This can make your financial situation very difficult when all you wanted the loan for was to borrow funds when you needed them! But with MoneyLion, we keep your payments at the same rate, regardless of how much money you’re making. This helps ensure that you get to do what you want to do with your money without being punished for earning more.
Are there other ways to get support if you are unemployed?
There are other ways to get support if you’re unemployed. For example, if you don’t qualify for a Credit Builder loan from MoneyLion, you can apply for Instacash instead, which is MoneyLion’s cash advance opportunity. Here are a few ways to get support if you’re unemployed but don’t want to take out an unemployment loan.
Seek out a 0% APR Instacash cash advance
If you have a payment due soon but you won’t receive your paycheck in time, you can request a cash advance through MoneyLion’s Instacash program, which can provide you with a cash advance of up to $250 without any interest. Then, once your paycheck arrives, the borrowed amount will be instantly deducted on your behalf, making it easy to pay back your Instacash cash advance.
Start a side hustle
One of the easiest ways to make extra money is to start a side hustle. Whatever you like to do, whether that is designing, writing, or taking pictures, there’s a market out there for you. There are so many people who are ready and willing to pay you for your skills.
Ask family and friends for help
Your family and friends care about you, which is why they’ll probably be willing to help you when you’re in a financial pinch. When tough times hit, consider asking your loved ones for a loan to help you pay for the things you need.
Tips for dealing with your debt
Did you know the average American owes over $90,000 in debt? If you find yourself drowning in debt and you don’t know how to get out of it, know that you’re not alone. Here are a few ways to start dealing with your debt today.
- Check your credit report to understand how much debt you have and which of your accounts have an outstanding balance. This will give you insight into your finances and let you know which bills you need to pay back first.
- Try to consolidate your debt by transferring your balance over to zero-interest credit cards or taking out a personal loan for unemployed people to cover your expenses. These options will help you pay off your debt much faster.
- Minimize your spending habits to help reduce your debt overall. Only spend within your means.
- Make plans to bring in more money by starting a side hustle or getting another job altogether. These are a couple of the fastest ways to start cutting down on the amount of debt you have without spending any money in the process.
Get the money you need today!
Personal loans for unemployed people can be a great way to get the financial backing you need, regardless of your job status or credit score. MoneyLion is an excellent resource for anyone looking to obtain a loan with fast approval times. Plus, MoneyLion offers great options with a lot of variety, ranging from the Credit Builder loan to the Instacash cash advance program.
Can I get a loan without a job?
While you might not be able to qualify for a traditional loan, there are many other ways to get a loan without a job, like MoneyLion’s Credit Builder loan, which offers loans for unemployment and low credit scores to help you get the cash you need now.
Where can I borrow money ASAP?
If you need money now, consider using Instacash for same-day cash advance funding or a MoneyLion Credit Builder loan to receive up to $1,000 immediately.
Is it a hard credit check when applying for a personal loan?
Before most lenders will approve you for a personal loan, they will often need to perform a hard credit check so that they can make sure you meet their loan requirements. But with MoneyLion, we only perform soft credit checks, meaning your credit won’t take a hit as a result of you applying for assistance from MoneyLion!