Loans for the Unemployed – Loan Sharks or Honest Lenders?
Some of our applicants here at Financing-USA.com are requesting loans while being unemployed. Although that may seem like an impossible feat, it’s actually not. However, you will have to have SOME form of income each month to service the loan. This income can be from part time jobs, unemployment insurance, disability insurance or some other form of income. These are not loan shark companies. Most are honest lenders that are trying to make money too, and charging higher rates and terms to help them manage the risk associated with what is perceived as a higher risk of area of lending. More on this later in this post.
You will need to be able to provide documentation that can include pay stubs showing the income you are receiving or it might be a copy of several months of your bank account statement showing regular electronic funds transfers into your account. You can ask your bank for a copy of your statements if you do not have them and most banks today will enable online access to your past account statements which you can access from any computer at home or at work.
So what we plan to do on this page is periodically post additions to this list of lenders and borrowers involved in a successful loan approval. The main point of criteria will be that the borrowers don’t have gainful employment in the traditional fashion. Their employment can be a variety of things as we mentioned. If you have been involved in applying for a loan while being unemployed, why not leave a comment to help our readers and other people who need loans. They will benefit from your comments and may even be able to provide comments of their own which will assist you in your quest for a loan for the unemployed.
As you can well imagine already, many of these successful loans were awarded to the applicants who were on Social Security Benefits (SSI) – true, but there are other examples as well, that we will be publishing. Stay tuned.
Some people feel that lenders that charge the rates they do to people who are in this business are really loan sharks and not honest lenders at all. The reality is that this area of lending is higher risk than most areas for the simple reason that people who are unemployed have less sources of income and sometimes cannot repay the loans. These lenders tend to charge more for these types of loans due to the perceived higher risk than they would charge for loans for people with better credit ratings and full time jobs.
Borrowers can protect themselves by examining the fine print before they sign for a loan while being unemployed. They should be aware of the interest rate that they are paying and any fees that might be included as part of the loan package. This should also include any fees for nonpayment of the loan or a missed monthly or weekly payment. Most lenders will charge a fee for a payment that is missed which can be expensive.
In addition, if your payments are being deducted from your bank account and there are insufficient funds, your bank might charge a fee as well. These fees are not something anyone who is unemployed wants to pay due the shortage of funds in general. You might claim these are really loan shark fees, but it is quite common in the industry for all types of loans. Honest lenders, those lenders who lend money for personal loans and mortgages also charge these same fees as do banks for insufficient funds in the accounts.
If you are applying for a loan while you are unemployed we urge you to read all of the fine print and understand all of the charges before you sign for the loan. Consumers that are employed or unemployed should always read all contracts to ensure that they fully understand all of the issues that they are dealing with when they take out a loan.