Even if you lose your job and are temporarily unemployed, financial institutions in Trempealeau County can still provide you with personal loans. However, to qualify for a personal loan for unemployment, you need to verify some source of income that will be sufficient to cover your potential debt. In addition to alternative sources of income, some lenders may require you to have a decent credit score and a low debt-to-income ratio. Although getting a loan for unemployment can be tough, it’s still possible. Let’s take a look at some options you can access.
What Kind of Income Can You Have While Unemployed?
Your wage is not the only form of income that can be used as a return guarantee. You can also access personal loans for unemployment with one of the following sources of stable income.
Unemployment Benefits
If you receive unemployment benefits regularly, they can be your way to get approved for a personal loan while you’re unemployed. However, get ready to contact the state that pays you for unemployment and provide proof of the amount you receive, as well as verify how long you’ve already been on unemployment, payouts frequency, and the maximum time frame you can receive unemployment benefits.
Social Security
If you have a permanent disability or reach the age of retirement, your income from Social Security can be easily used as a repayment guarantee when you apply for a personal loan. Many lenders take such an income into consideration and can prove your personal loan request if the sum you have on a monthly basis is high enough to service your debt.
Alimony or Child Support
If you receive alimony or child support payments systematically, you can also count on getting a personal loan for unemployment. All you need is to provide proof of past and current child support or alimony payments and verify your entitlement to them in the future.
Retirement Income
If you have a Roth IRA account with the money stashed for your comfortable old age, you can also use it to prove your solvency to a lender. Withdrawing money from it will be tax-free if you reach the age of 59 and a half.
Self-Employment
If you have a small business or are a freelancer or self-employed, it won’t be a problem for you to get a personal loan. At least until you can provide some documentation that shows how much money you’ve earned during the set period of time.
Rental Income
If you rent out your house or apartment and get money from it, you can also specify this sum as your stable source of income in a loan application form. Even if you rent a spare room in your house, you can count your roommate’s rental payments as income too.
Spouse’s Income
Some types of loans (they are typically called joint personal loans) involve taking into account your spouse’s income if both of you reach the age of 21. Thus, your total household income will be used to qualify for a personal loan for unemployment. However, keep in mind that if you default on your loan payment, your spouse will also be on the hook as a co-signer.
Can I Get Personal Loans for Unemployment with Bad Credit?
The short answer is yes. However, your options will be even more limited. If your credit history leaves much to be desired, you need to search for a lender that doesn’t take into consideration borrowers’ credit scores when making a loan decision. Although such loans carry more risks for loan providers, they are often pretty expensive. However, if you need money urgently to cover your financial emergencies, such lenders can lend you a helping hand.
Consider applying for a payday loan if you need a short-term financial solution, or obtain an installment loan for bad credit if it will be easier for you to repay the funds in equal monthly payments.