The Types of Loans Unemployed People Can Get
We all know that you always need more money than you have when it comes to finances. That’s why you need to explore your options when looking for an extra source of income or funds for emergencies. So if you’re getting a loan without a job, here are the types of unemployment personal loans available to you.
Home Equity Line of Credit
If you’re looking for something to borrow against your home, a home equity line of credit (HELOC) is a great choice. The HELOC allows you to borrow up to 80 percent of the home’s value. This type of loan comes with a lower interest rate that more than offsets the cost of borrowing.
Joint Personal Loan
A joint personal loan is a personal loan that two people close to one another can take out. For example, if you and your significant other want to get a personal loan together, you could apply for a joint personal loan.
To qualify for a joint personal loan, the two borrowers must be close in age or have an established business relationship with one another. The loan amount will be based on the borrowers’ credit history and financial situation.
It’s important to note that these loans are only available if your partner has income or owns their property.
Use a Co-Signer
A co-signer can help you secure a loan. Your co-signer won’t be liable for repaying the loan if you don’t.
Another option is to use a guarantor. If your bank or credit union has some guarantee program, then this might be the way to go. A guarantor will make sure you repay the loan in case you can’t come up with the cash yourself.
Car Title Loan
If you have a car, but you don’t have the title and can’t afford to get it, a car title loan is probably your best bet. It’s a quick and easy process that allows you to borrow up to 60 percent of the value of your car in exchange for paying it back within two years with interest.
Payday Loan
It is a short-term, unsecured loan. You can borrow up to $1000 for a single paycheck on this type of loan. Payday loans are typically due in 2 weeks, so they’re not necessarily the best option if you need money quickly.
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Refinancing Loan
A refinancing loan is a type of loan that helps you lower the interest rates on your existing credit card debt. This is when an individual takes out another loan to pay off an existing loan with higher interest rates, or in some cases, even better terms.
Refinancing may not be the best option for everyone, but it’s worth looking into if you’re unemployed and are struggling to keep up with your bills. Although it is not easy to get a loan when you are unemployed, there is still a way to find one.
Each type of loan has its pros and cons. For example, according to Lantern by SoFi, knowing what kind of loans are available to you and how they work will help you decide which loan is best for you.
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