Unemployment can hit your finances hard, and a personal loan might seem like an attractive option to help you stay afloat.
Unemployment loans are possible, but you’ll likely have to prove you have an alternative source of income, and the lender may take a closer look at your credit profile.
Here are some things to know about applying for a loan if you’re unemployed, along with information and alternatives you can consider before applying.Factors Lenders May Use to Evaluate Your Loan Application
Lenders consider multiple factors when evaluating a new loan application. Ultimately, they are trying to figure out how likely it is that you will repay your loan.
Income is often a big consideration in the lending world, so being unemployed can make getting a personal loan more difficult. But if you have sources of income outside of a traditional job, you may still have a chance to qualify. Below are some common examples of alternative income.
Spouse’s Income: If you are married and your lender allows it, you may be able to include your spouse’s income on your 대출 application. This may be allowed if you can use that income to help pay off the loan. You may need to include your spouse as a co-applicant if you choose to include your income as a source of income.
Investments: Capital gains or money from investments
like real estate may help indicate your ability to repay your loan. One-time capital gains may not be considered, but recurring income from dividends or rental property may be allowed if approved by the lender. Retirement benefits: Social Security benefits or regular withdrawals from 401(k) plans may qualify if you’re retired. Other payments: Unemployment, alimony, and child support may be accepted as other predictable sources of income. But be warned: The Equal Credit Opportunity Act prevents lenders from asking you to disclose certain types of income, including types of public assistance, alimony, and child support.
Another factor lenders may consider in determining whether you have the ability to repay a loan is your debt-to-income ratio . This is calculated by dividing your total monthly debt payments by your monthly gross income. Your gross income is generally your income before payroll deductions like taxes and insurance.