Showing posts with label get a loan without a job. Show all posts
Showing posts with label get a loan without a job. Show all posts

Wednesday, August 1, 2012

How to Get a Loan without a Job



These days, a lot of people want to know how to get approved for loans without a job. It's not as farfetched a thought as it sounds, really. It is indeed possible to get loans even you don't have a job. If you are needy of immediate money and you don't have work at the moment, the solution you are looking for can be found on unemployment loans. This type of loan is perfect for people who are presently in between jobs.

Unemployment loans provide the best and easiest solution for people who have been laid off, or those who suddenly found themselves in tight financial binds and they are without work. Since unemployment is a common scene in a down market like ours, there's just an endless number of people who need this type of loan.

Interest Rates for Unemployment Loans

The interest rates for unemployment loans are understandably high, as the lenders are taking a big risk, if not a total leap of faith, in people who doesn't have jobs. Bear in mind that borrowers would have a harder time paying off debts if they don't even have a sustainable income for themselves. The risk makes it nearly impossible for most lenders to harbor the thought of lending money to unemployed borrowers. Enter unemployment loans.

Kinds of Unemployment Loans

There are two kinds of unemployment loans. At first, the promise that this type of loan is suitable for people without jobs is just intoxicating. It does sound too good to be true. In a way, it is. The two types of unemployment loans are based on risk management. The first is called the secured loan, wherein the lender asks for collateral. This is the lender's security blanket when it comes to giving loans to people with unstable finances. The second type is the unsecured loan, which doesn't require any collateral at all. The catch is that the lender may use any legal means to extract payment for the debt. For instance, if a borrower fails to pay on time, he can be sued by the lender. The interest rates are also higher, as it is more risky for lenders.

To better understand how this can be an opportunity, and not another drag to the finances, it is important to realize that the money obtained from the loan has to be put to good use. The loan itself is well-intentioned. However, the way the money is put to use will still decide how effective the loan will really turn out to be. Take, for example, an unsecured loan of $2500. If the borrower doesn't pay on time, he will have to spend up to tenfold that much in liability suits and other legal expenses when he is called to his defense. On the other hand, if he uses the money wisely and starts a business, he will not only be able to pay the principal and interest, but he will have established a stable footing for his finances. In summary, it's possible to get a loan without a job. If you need to get a loan without a job, unemployment loans are perfect for you.

Can I Get a Payday Loan Without A Job?


Getting a loan even without a job is highly overrated. It's very sad that many people on the Internet are taking advantage of the fact that unemployed borrowers are desperate to find a source of money, even in the times they are in between jobs. One common misconception is that people are supposedly able to get payday loans without a job. The following article is going dispel this myth and root out the real thing behind it.

Getting Payday Loans

First of all, let's talk about what a payday loan is. This will help us better understand how it works and why it can't be given to a person without employment. A payday loan is a type of loan that is not built on trust. Instead, this loan is built on a paycheck. The paycheck is used to make a promise that the debt will be repaid on a timely manner. For that reason, nearly ninety percent of all payday loans go out smoothly, whereas in other types of loan, the number of people who are able to repay the debt fully and on time are well below half that.

In a payday loan, the absence of a proof of income disqualifies a person from getting approved. Without this required assurance, there is no point for the lender to take that risk. Come to think of it, the reason why it's called payday loan is because the borrower uses his payday to promise the debt will be paid back. Without that, there's nothing. And with nothing, there's no such thing as payday loan for unemployed people.

Unemployment Loan
That, however, doesn't mean people who are currently unemployed are totally without options. There are options for people who don't have jobs at the moment. One of which is an unemployment loan. This is the type of loan that is specifically built for people without work. A lot of us just get confused between the two and misinterpret the two things are one and the same. Payday loans and unemployment loans are very different. For one, unemployment loans have higher interest rates, as there is very little assurance for the lender that the debt will be paid back. The time to wait for approval may also take longer. The good side is that the amount of money is much higher.

An unemployment loan can be one of two things: a secured loan and an unsecured loan. The first requires that the borrower presents collateral for the loan, while the other does not. The collateral is often a house or a car, or some other huge financial investment. In some cases where the principal amount of money being borrowed is small, the collateral may just be digital devices, gadgets such as cellphones, or jewelries.

The unsecured loans have the highest interest rates, as the lenders are at a total loss of surety when it comes to being paid back. In turn, they may take aggressive measures to extract payment. The borrower can't default on his loan like in secured unemployment loans. If he does not pay, the lender has the right to bring the borrower to court, which will then lead to more financial setbacks for the borrower.

It is true that one can get a loan without a job. But to get a loan without a job, there would be some risks; a borrower must know how to manage those risks in order to succeed in this.