What to Do When You Need a Personal Loan but Have Bad Credit and No Job
When borrowers have bad credit, they are often advised to look into payday loans that use employment checks. Sometimes, though, borrowers might not have a verifiable employment to turn to. Freelancers, new employees, and the recently unemployed all need cash on hand, and they need alternatives to bad credit personal loans that are not payday loans. Here are some options for those who can’t supply a recent paycheck stub.
Collateral loans are a special type of bad credit personal loans. Instead of calling up the borrower’s credit history and evaluating whether or not he or she is a worthwhile risk, the lender receives something from the borrower to hold in trust. For some, lenders will request nothing more than a good faith check for the full amount of the loan to be cashed on the end of the loan. Other lenders will require access to something more valuable, such as a car title, savings bond or CDs that have yet to mature, or a mortgage title. If the borrower fails to pay back the loan, he or she gives up claim to the collateral item. These types of loans are incredibly risky and should be avoided if the borrower has other options.
Unsecured Personal Loans
Another option is an unsecured personal loan. Personal loans are not payday loans, and so they do not need to be paid back within a matter of weeks. This is great for those between jobs, looking to fill the gap until they get hired. Borrowers apply for these loans online, and with no credit check and no employment verification, they can get thousands of dollars transferred to their bank account in minutes. Because there are few guarantees for the lender with these loans, there can be some pretty hefty fees attached. Borrowers may end up paying a great deal more than want, but they are paying for the convenience of instant cash.
Debt Consolidation Loans
Borrowers should also consider debt consolidation loans. These loans are very helpful bad credit personal loans as they are specifically designed to improve the credit of the borrower. Companies and banks will work with the borrower to address the whole of their debt and financial obligations. They will assess the total amount of outstanding debt and then agree to pay each of those debts off for the individual if the individual will commit to paying the company an agreed upon amount. This debt solution can initially impact the borrower’s credit in a negative way, but over the course of several months, as the other debts are paid, the borrower’s credit score will climb and the debts will slowly disappear.
Getting a personal loan with bad credit and no job is not always easy, but it can be done. By selecting one of the above types of loans, borrowers can get the cash they need today while they work on improving their credit score for tomorrow.