Unemployment Loans are design for individuals who are seeking employment and looking to find themselves a new career opportunity. Most of the time, an individual must be unemployed or under-employed to qualify for no employment loans.
Individuals who unemployed can loan money from $50 to $1000 through their state’s Unemployment Trust Fund system. There are a number of qualifications that need to be met in order for the applicant to qualify. One of the most important requirements is that individuals must be prepare to submit a detailed work search plan. Which clearly shows that they are actively seeking employment.
An individual must be willing to accept employment in any part of the country, whether it’s near their home or not. Sometimes people use Unemployment Loan for reasons other than what it is designed for. They may use these loans to pay for expenses like rent, car repairs, car insurance and even groceries.
Although it’s possible to get these scholarships, to secure these loans, you must meet each of the requirements and prove that you are just as worthy of them as anyone else is.
Another aspect of no employment loan is that applicants have to be able to prove their identity. They must also provide updated information about themselves from their last work history. Applicants should also be prepared with up-to-date details in order to qualify for a loan.
Why is a job always required for a loan?
A job require if you are planning to take out a loan. In the first place, most people would like to purchase a car, and this is not possible without a job. A car loan is one of the biggest loans an individual can take on because the interest rates on these loans are higher than most of the other loans.
Even for students loaning money for their education, it is very important that they have jobs because their parents will be able to pay back the loan so they do not default on the payment.
However, a student can also get a credit card and buy books and study materials. That is not the same as taking out a car loan or a house mortgage though because the interest rates on credit cards are very low. It is also easier to pay off credit card debt immediately when you go to school rather than have to wait till the end of the semester.
Types of No Employment Loans
- Payday Loans:
These are short-term unsecure loans normally in the range of $500 to $1000. They also refer to as cash advance and cash loans and they offer by many payday lenders. They can be obtain at banks but due to strict requirements in some states, you might need to use a payday loan company. The main advantage of these loans is that they can be obtain without a job or even identification.
- Installment Loans:
They are available from banks, credit unions and several other financial institutions. They can be use to borrow money for furniture, electronics, computers or any major purchase. The main advantage of these no employment loans is that you only have to pay a little amount monthly until the loan becomes fully paid. The downside is that some of the interest rates on these loans are higher than most of the other loans.
- Home Equity Loans:
These are unsecure loans that are available from banks and financial institutions. They offer for up to $40,000 and the interest rates on these loans are quite low. Their main benefit is that you can borrow money against your home.
- Unsecure Personal Loans:
This is a type of unsecure loan that can be obtain from banks, credit unions and other financial institutions. It is design for those who have the ability to pay back the loan quickly. It could be use for education expenses, paying off debts or buying a car. The main advantage of these loans is that you are not require to provide proof of employment and you do not borrow money against your home.
- Credit Cards:
These are use for short-term borrowing and they only end up charging you more money than they should. If you can’t pay back your student loans on time, your credit score will be affect negatively. That means that it is best to pay off these loans immediately after they become due and if you are unable to do that, then ask for an extension. You should avoid carrying a balance on these cards because it is a big burden if you have a bad credit score.
- Personal Line of Credit:
This is another type of unsecure loan that can be obtain from banks and financial institutions. You can use this loan to start your own business or to invest in an existing business. This is good for those who want to borrow larger amounts of money ranging from $20,000 to $100,000.
- Term Loans:
Term loans are usually use for transactions such as home improvements, education expenses, vacations and even to purchase a car. It is also useful to borrow money for emergencies. They usually charge low interest rates so it is important to get a good credit score before getting this type of no employment loan. For an unsecured loan, it is necessary that you have an excellent credit score; otherwise you will not get the amount of money you need to repay the loan on time or at all.
- Title Loans :
Title loans are taken out by those who are in dire circumstances and they cannot wait any longer for the money to be repaid. You simply need to pay off the balance of your loan over the period of time that you have agreed with the company that has extended you this loan. The interest rate is quite low but it is still much higher than zero percent loans which usually come from banks and credit unions.
- Secured Loans:
These are the best types of loans if you have an excellent credit score. They are available from banks and financial institutions. The main advantage is that it does not require a job as a proof of employment. The interest rates on these loans are generally lower than most of the other unsecured loans.
- Collateral loans:
These are also secured loans. They are available from banks and credit unions and they can provide you with the loan amount needed for education, business start-up, car purchase and even home improvement. It is still important to have an excellent credit score before taking out a secured loan because they also charge relatively high interest rates.
In conclusion, there are different types of no employment loans that you can borrow. It is necessary that you should know the best loan option for your situation. If you are planning to get an unsecured loan, make sure that you have an excellent credit score before getting one and if possible, find a secured loan with low interest rates prior to taking out an unsecured loan with higher rates.