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Few things are more stressful than being unemployed. You may be saying "I have no income and need money now" while wondering whether you're even eligible for a personal loan to get you through. Here, we'll show you how it's possible to get a personal loan while unemployed, and help you decide if it's the right move for you.
Your ability to get a personal loan doesn't depend on your employment status, although it might seem that way at first. Here's how to get a loan while you're out of work.
The income you use to repay the loan debt does not have to come from an employer. The best personal loan lenders understand that everyone's situation is different.
A lender will consider any of these as income:
If you don't have a steady income and need a loan asap, ask your lender if you can use something of value as collateral. When you get a loan with collateral, the loan is known as a secured loan, and lenders can take this collateral if you're unable to pay. Examples of collateral include:
Personal loans that don't require collateral are known as unsecured loans. With unsecured loans, the lender can't take your house, car, or other possessions if you miss payments. But unsecured loans are harder to get approved for. If you're struggling to get approved for a loan, find out if your preferred lender offers secured loans.
Generally, you'll need a score of 580 or higher to qualify for a personal loan (Although the credit score needed for a personal loan varies by lender and it may be possibly to qualify with a lower score).
If you need an emergency loan and don't have time to improve your credit score, you're not alone. Look for loans for bad credit. These lenders -- also known as a mashonisa -- will have experience working with low-credit borrowers and will be more likely to approve you for a loan.
A personal loan can be used for anything -- if you have debt piling up, you're probably focused on things like:
Get the best rates and terms to fit your needs. Here are a few loans we'd like to highlight, including our award winners.
If you can't afford to make the monthly payment on a loan, look for a less stressful way to cover expenses. You are likely more stressed right now than you have ever been in your life, and if adding one more bill to your life adds more strain, take care of yourself by not taking on the obligation.
Below, we'll cover some alternatives that might be less stressful than a personal loan.
Since the pandemic, people have been able to find more financial assistance from:
If you're struggling to keep up with your bills, call your creditors and explain your situation. They may offer paused payments, deferment, forbearance, new repayment plans, or other forms of financial relief.
If you had a low-interest credit card before your job loss, check the current interest rate to make sure nothing has changed. If you're sure you can manage the monthly payment, consider using it as an emergency loan.
If you're in a bind, call your investment or retirement account manager to learn if you can borrow from your account. When you borrow from an investment or retirement account, you don't need to worry about credit score requirements or interest rates. You will give up the interest you could have earned from keeping your money in your retirement account, but that's a small price to pay for peace of mind and having your bills taken care of.
There's not a person in our country who has not been impacted in some way by the pandemic. If you have family and friends on solid financial footing, consider asking for a loan to get you through.
You are naturally concerned about your life, family, and finances. If a personal loan can help you through this time without adding additional stress, consider it as a loan option.
Looking for a personal loan but don’t know where to start? Our favorites offer quick approval and rock-bottom interest rates. Check out our list to find the best loan for you.
For most loans, you'll need to be able to show other sources of income, such as unemployment benefits or child support. If you don't currently have a source of income, you can try putting up collateral (like a car or savings account) instead.
Yes, if you need it and if the payments won't add extra stress to your life. If you don't know whether you'll be able to make the payments, take care of yourself by considering less stressful options (like borrowing from a retirement account) instead.
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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent, a Motley Fool service, does not cover all offers on the market. The Ascent has a dedicated team of editors and analysts focused on personal finance, and they follow the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands.
*SoFi Personal Loan Disclaimer
Fixed rates from 8.99% APR to 29.99% APR reflect the 0.25% autopay interest rate discount and a 0.25% direct deposit interest rate discount. SoFi rate ranges are current as of 02/06/2024 and are subject to change without notice. The average of SoFi Personal Loans funded in 2022 was around $30K. Not all applicants qualify for the lowest rate. Lowest rates reserved for the most creditworthy borrowers. Your actual rate will be within the range of rates listed and will depend on the term you select, evaluation of your creditworthiness, income, and a variety of other factors.
Loan amounts range from $5,000–$100,000. The APR is the cost of credit as a yearly rate and reflects both your interest rate and an origination fee of 0%-7%, which will be deducted from any loan proceeds you receive.
Autopay: The SoFi 0.25% autopay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account. Autopay is not required to receive a loan from SoFi.
Direct Deposit Discount: To be eligible to potentially receive an additional (0.25%) interest rate reduction for setting up direct deposit with a SoFi Checking and Savings account offered by SoFi Bank, N.A. or eligible cash management account offered by SoFi Securities, LLC (“Direct Deposit Account”), you must have an open Direct Deposit Account within 30 days of the funding of your Loan. Once eligible, you will receive this discount during periods in which you have enabled payroll direct deposits of at least $1,000/month to a Direct Deposit Account in accordance with SoFi’s reasonable procedures and requirements to be determined at SoFi’s sole discretion. This discount will be lost during periods in which SoFi determines you have turned off direct deposits to your Direct Deposit Account. You are not required to enroll in direct deposits to receive a Loan.
Impact to credit score: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.
Citi Personal Loan disclaimer:
**Rates as of 10-06-2023 . Your APR may be as low as 10.49% or as high as 19.49% for the term of your loan. The lowest rate quoted assumes excellent credit, and a loan term of 36 months or shorter. Otherwise, a higher rate will apply. For example, if you borrow $10,000 for 36 months at 15.99% APR, to repay your loan you will have to make 36 monthly payments of approximately $351.52.
There is a 0.5% APR discount if you enroll in automatic payments at loan origination. Additionally, existing Citigold and Citi Priority customers will receive a 0.25% discount to the interest rate. If you are in default, your APR may increase by 2.00%. No down payment is required. Rates subject to change without notice.
You must be at least 18 years of age (21 years of age in Puerto Rico). Co-applicants are not permitted. Loan proceeds cannot be used for post-secondary educational or business purposes.
If you apply online, you must agree to receive the loan note and all other account disclosures provided at loan origination in an electronic format and provide your signature electronically.
Credit cards issued by Citibank, N.A. or its affiliates, as well as Checking Plus and Ready Credit accounts, are not eligible for debt consolidation, and Citibank will not issue payoff checks for these accounts. If you are unsure of the issuer on the account, please visit https://www.citi.com/affiliatesproducts for a list of Citi products and affiliates.
*Upstart Loan Disclaimer
The full range of available rates varies by state. The average 3-year loan offered across all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646 including a $626 origination fee. APR is calculated based on 3-year rates offered in the last 1 month. There is no down payment and no prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.