Payday Loans for Unemployed
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Over the years, the numbers of people who submit a loan application for personal loans are on the rise. According to a report published on the TransUnion, the number of applicants who applied for some type of personal loans in 2019 rose by 19%.
Among them, payday loans are also increasingly sought out by people. Payday loans are one type of unsecured personal loans. In this type of loan, you pay back the money on the next payday.
But how does it work if you are unemployed? Since the loan inherently demands that you repay it with a paycheck, can you still secure a payday loan without having a regular job?
Find out all these and more in this post.
Table of Contents
What are payday loans for unemployed?
Payday loans for unemployed are those loans that you can apply even without regular employment. These types of loans do not require you to put down collateral, which is one of its most advantageous features. If the money lender agrees to give you the loan, you need to sign the agreement papers, and you can get the money in your hands in no time.
However, financial institutions and any other type of lenders will not just hand out their money. You can apply for payday loans while you are unemployed. But you do need to prove that you have some income in order to get the loan.
- Unemployment benefits
- Social security benefits
- Disability benefits
If you have access to these sources of income and you can furnish the documents, most lenders will approve your payday loan in no time. You can back these documents with bank account statements, as well as investment account statements.
If you wish to apply for payday loans, you can seek out banks as well as non-banking financial companies which are also called NBFC. You can also apply for payday loans on online platforms.
Most of the lenders have their own terms and conditions which may or may not include:
- A resident of the USA
- Minimum age of 18
However, it may also include other conditions, so be sure to check them out before submitting the application. Similarly, the interest rates can also vary widely across the board, so make it a point to check it out as well.
If you are curious about how quickly you can get these loans approved, most of the lenders follow a next business day deposit policy. So it can be as quick as 24 hours.
Can I qualify for a loan with alternative income?
A straightforward answer? Yes.
In the United States, alternative income refers to the money flow that you receive apart from a regular day job. These sources include:
- Disability checks
- Social security benefits
- Unemployment insurance
- Bank bonuses
- Home business income
- Credit card bonuses
- Interests and dividends earned
- Monetary gifts
- Rent from tenants
- Part-time jobs
Important things to keep in mind.
Payday loans fall under the category of personal loans. Since they are not earmarked, you can use the loans for whichever purpose you want.
The options to apply a payday loan even as an unemployed person are quite diverse. It can also be enticing to get ready loans without putting down collateral.
But payday loans are not without pitfalls. Among others, some of the important things to keep in mind before seeking out a payday loan for unemployed include:
- The rate of interest – Interest rate of the loan should be the first thing you need to consider. It typically differs from one lender to the other. However, the most you can expect to pay is $15 for every hundred dollars.
- Repayment term – This is the time during which you are required to repay the loan.
- Hidden fees – It includes everything from origination fee and Annual Percentage Rate or APR.
- Payday loans also typically do not require you to put down collateral or bring in a guarantor.
If you are not a regular employee of a company or something similar, this shouldn’t deter you from applying for a payday loan. They are easily accessible, and they can be of immense help when you are strapped for cash.
However, it pays to borrow only the amount that you can repay within a reasonable amount of time.