If you are unemployed and are unable to pay back your payday loan, you can still apply for one of these loans. Even if your credit history is not ideal, you can still qualify for one of these loans if you have a steady alternative income. A thorough assessment of your income and expenses will show that you have enough money to repay the loan.
Alternatives to payday loans
There are several alternative lenders that offer low-cost loans. Federal credit unions, for example, offer personal loans with lower interest rates. You can get up to $2,000 from these lenders. The interest rate on these loans is about 28 percent, which is lower than payday loan rates. However, you must be a member of the credit union to apply.
While payday loans are easy to obtain and come with a small interest rate, they are not the most sustainable way to get the money you need. In addition, these loans come with high fees and 400% APRs. As a result, payday loans should be a last resort for borrowers in urgent need of money. To avoid the risks of such loans, you should consider the nine alternatives to payday loans.
One of the most important advantages of payday loans is the speed at which they can be approved. You can apply online for these loans, and the money can hit your account the same day or the next business day. While payday loans are fast, they come with hefty fees and short payback periods, which can lead to financial stress and damaged credit.
Requirements to qualify
The main requirement for applying for a loan with direct lenders is a steady income. This means you should have a history of regular monthly paychecks. If you are unemployed, it can be difficult to show a consistent source of income, but having a record of your monthly earnings will help you find a lender.
Although unemployment benefits are not enough to pay off a loan in full, these payments can still be helpful if you need emergency cash. If you are receiving unemployment benefits, you will want to mention this to the direct lender. This will ensure that your application is processed faster and without a credit check.
There are several options for unemployed people to apply for emergency loans. Several of them can be obtained online. Those with bad credit will need to provide some proof of income, such as a bank statement or investment account statements. Alternatively, they can present other sources of income, like unemployment benefits or disability benefits.
Many direct lenders offer loans to the unemployed, but you must have a steady income and a good credit score to qualify for a loan. It can be difficult to prove this when you are unemployed, but you can still prove your income with a history of monthly salaries.
Usually, payday lenders offer loans for 14 days or a month. However, they also offer installment loans, which allow you to make shorter payments throughout the month. Some payday lenders even allow you to spread your repayments over three, six, or even twelve months. This means that you can borrow a large amount of money without having to worry about it becoming a huge debt.
You should always check if the lender you are applying with will accept your application. Some direct lenders will require additional information and documentary proof.