If you are facing a long stint of unemployment, then your financial obligations are likely piling up quickly. Beyond simply paying for food and rent, you likely have other bills to pay just to stay afloat. Without a steady paycheck or solid emergency fund, you may need to resort to a loan in order to fund your expenses.
However, if you have bad credit, then you might think it is difficult to secure funding. Although it might be more challenging than some, it is completely possible to find a loan if you are unemployed and have bad credit.
MoneyMutual
on MoneyMutual's secure website
Loan Amount
$2500
Loan Term
Varies
APR
Varies
MoneyMutual is willing to work with borrowers with bad credit; even if you’ve been forced to declare bankruptcy recently.
The quick application process won’t take up too much of your time. If you are approved, you’ll be able to receive your funds in one business day. However, the relatively small loan amounts may not keep your money troubles at bay for long.
CashUSA
on CashUSA's secure website
Loan Amount
$500 - $10,000
Loan Term
6 to 72 months
APR
Varies
CashUSA is not a direct lender, but it can match you to lenders. Your application will be shared with many lenders to find a good match.
With CashUSA, you will need to have a monthly income of at least $1,000 after taxes. So, if you still have a side hustle or have picked up a part-time job, then CashUSA may be able to help you. If you aren’t bringing in any money at all, then this will not be a good option for you.
BadCreditLoans.com
on BadCreditLoans.com's secure website
Loan Amount
$500 - $5,000
Loan Term
3 to 60 months
APR
Varies
BadCreditLoans.com can set you up with a personal loan from $500 to $5,000.
All the standard eligibility requirements apply: you must be 18 years of age and a US citizen. You are also required to have a checking account and proof of employment.
Bad Credit Loans does not provide information about interest rates; those are set by the lender. However, repayment terms are listed as 3 to 36 months.
Net Credit
on Net Credit's secure website
Loan Amount
$1,000 to $10,000
Loan Term
Varies
APR
Varies
NetCredit is a direct lender that might be able to provide the funds you need. Although the company offers loans up to $10,000, you should expect a lower loan amount based on your employment status.
If you take out a loan with NetCredit, then be prepared for a steep interest rate. However, it could solve your short-term cash flow issues.
NetCredit offers one interesting feature that might come in handy. You can return your loan within one business day if you change your mind for any reason. So, if you decide that your budget cannot handle another expense, then you can return the loan without a hassle.
Credit Loan
on Credit Loan's secure website
Loan Amount
$250 - $40,000
Loan Term
Varies
APR
Varies
CreditLoan works with borrowers regardless of their credit history. However, a credit score of under 630 will only allow you to qualify for up to $5,000. CreditLoan can match you to a lender that might be able to fund your cash emergency.
A short term personal loan of a few thousand dollars may help you to alleviate some stress during your job hunt.
Alternatives to Personal Loans for Unemployed
If you are unemployed, then think of a loan as your last resort. First, look to the resources already available to you and your family.
Consider collecting unemployment insurance, welfare benefits, and spending through any severance before taking out a loan. You might even be able to receive a helping hand from a local church or charity. If things get tight, then you may want to call on the generosity of your family and friends throughout this difficult time. At the very least, you might be able to secure a no interest loan from a close friend.
If you run through these resources, then look to your other options. These include:
- A credit card cash advance.
- Home equity line of credit.
- Sell or pawn your possessions.
- Refinance your home or car.
- Car title loan.
Each of these could be used to alleviate your financial difficulties. Think through each of your options before deciding on a course of action.
Bottom Line
Although it is possible to secure a personal loan if you are unemployed with bad credit, it is not the best situation. You may be stuck with high interest rate loans that can put even more pressure on your finances.
However, this might be the best option you have available at the moment. Consider your options carefully before taking out a personal loan while you are unemployed.