Emergency Cash Loans Unemployed No More Hassle

Losing your job leaves you with tons of unpaid bills. In such a case, taking out a loan can help you save your credit score until you find a new job. In this article, we’ll discuss loan options for the unemployed who want to put an end to the hassle they’re going through. 

Emergency Loan Options for the Unemployed 

As surprising as it may sound, there are plenty of lenders who are willing to give you a loan even if you’re currently unemployed. Most of these loans are secured personal ones.

In the coming section, we’ll give you more details regarding these loans in terms of how they work and what advantages they provide the borrower, as well as the disadvantages of this type of lending.

Personal Secured Loans 

emergency cash loans unemployed no more hassle

A secured loan is a loan that’s attached to an asset as collateral. This asset is a property that the lender will take possession of in case you failed to repay the loan.

In other words, your job or salary isn’t the guarantee that you’ll make regular payments. Instead, the creditor secures the loan against your asset regardless of your source of income. 

Advantages

Getting a secured loan is the best option for anyone who’s unemployed for a handful of reasons, including: 

Least Interest Rates

Because these loans are attached to an asset, they’re deemed less risky by lenders. Accordingly, the interest rates are lower than many other loan options. 

Flexible Repayment Plans 

These loans are long-term loans, meaning you can repay smaller amounts for longer periods. This is more comfortable for borrowers, particularly if they don’t have a job because they won’t use the entire salary to repay the loan. Instead, they can cover other financial obligations or even save some cash to repay future bills.

Large Loans

Typically, emergency loans bad credit are short-term loans, most of which only disburse small amounts. However, you can borrow larger amounts with a secured personal loan as long as the asset attached covers the entire amount of the loan. 

Disadvantages

emergency cash loans unemployed

Although secured loans are always the best option to go for, there are some disadvantages that you should keep in mind, including:

Risky Borrowing

It won’t be hard to get a secured loan, particularly if you have a good credit score. Nonetheless, if you don’t get back on track as soon as possible and default on repaying the loan, you might lose the asset attached to emergency bond loans

Accordingly, you should always have a plan for future payments and only borrow as much as you need so that the monthly instalments are as little as possible.

An Alternative Source of Income May Be Needed

Some lenders will only lend you the money if you have another source of income rather than having a job. If you’re receiving retirement benefits or you have some investments, this won’t be an issue.

Eligibility for Emergency Loans for Unemployed Customers

emergency cash loan

In Australia, there are some criteria that you must fulfil in order to be eligible for getting a loan, including: 

  • You must be 18 years or above.
  • You must be an Australian citizen and provide proof of residency.
  • You must have an active bank account.
  • You must provide proof of another source of income rather than a job.

What to Do If I’m Unemployed and I Don’t Have an Asset to Attach to a Loan? 

Co-Applicant

emergency cash loans

Finding a co-applicant will make you a better candidate for getting the emergency cash loan in one hour. If your partner has a job and makes enough money to pay off the loan or they can provide an asset, there’s a big chance that you’ll get accepted.

Guarantor

emergency cash loan unemployed no more hassle

A guarantor is someone who agrees to pay off the loan if you failed to keep up with your payment. Unlike a co-applicant, a guarantor doesn’t take a share of the loan amount. Both the co-applicant and the guarantor are affected by the loan, and defaulting can potentially lower their credit scores.

FAQs:

Can I Get An Emergency Loan Without A Credit Check? 

Yes, many lenders provide emergency loans without requiring a credit check. However, these loans are usually too expensive, not to mention they’re mostly short-term loans and allow you to get access to a small amount of money.

Is a Payday Loan a Good Idea if I’m Unemployed?

A 1 hour payday loan is better kept as the last option for multiple reasons, the most important of which is that it can be quite stressful, especially if you’re unemployed. 

This is because these loans should be repaid in such a short period, reaching 16 days in some cases. This period is too short for someone who’s looking for a job. Not only that, but they’re the most expensive loans you can get, so they can leave you in quite a pickle. 

Can I Get an Emergency Loan if I’m Unemployed but Receiving Centrelink?

Yes! However, you’ll find many lenders who require having another source of income. Usually, they require that more than 50% of the income should be from a non-governmental benefit.

A lender who offers emergency loans for unemployed customers would be willing to give out the emergency loan centrelink for someone who’s receiving Centrelink payment. They might offer you less than someone who receives income from an investment, though.

Final Thoughts

Getting emergency loans centrelink can turn things around for someone who’s unemployed and has multiple financial commitments.

However, you shouldn’t take out a loan without being sure you’ll be able to repay it to avoid damaging your credit profile. If necessary, you can use the loan for repaying a couple of instalments. Nonetheless, taking an extra job is a better option. You do the math!

About the Author

Lucy has over a decade of experience in finance. She is currently the content curator here at Perfect Payday.

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