When you’re unemployed, it can be tough to make ends meet. Bills keep piling up, and there’s no end in sight. If you’re looking for a way to get some relief, consider getting a loan from a company specializing in loans for the unemployed.
However, not all of these companies are created equal. Some will offer better deals than others. So how do you know which company is right for you? Keep reading for tips on how to get the best deal from companies for unemployed loans.
1. Know Your Credit Health
The first step is to know your credit health. Check your credit score and see where you stand. With good credit history, you’ll likely get a better interest rate. However, if your credit isn’t so good, you may still be able to get a loan, but you’ll probably have to pay a higher interest rate.
For example, let’s say you have a credit score of 600. You can get a loan with an interest rate of around 10%. However, if your credit score is 720 or higher, you may be able to get a loan with an interest rate of around 6%.
2. Shop Around
The next step is to shop around. Don’t just go with the first company you find — compare a few companies’ rates to see who can offer you the best deal. It’s important to remember that just because a company offers you a low-interest rate doesn’t mean they’re the best option.
Make sure you read the fine print and know what other fees you’ll be required to pay. You could also check out loans for the unemployed at Viva Paydays to see available options.
3. Understand How Loans Work
Before you take out a loan, it’s important to understand how unemployed loans work. Make sure you know the terms of your loan and what you’ll be required to pay back. Also, be aware of the fees associated with taking out a loan.
For example, some loans may have an origination fee. This is a fee charged by the lender to help process your loan. Fees usually range between 1% and 5% of the loan amount. So, if you’re taking out a $10,000 loan, you could be charged an origination fee of $100 to $500.
4. Review Outstanding Credit
If you have any outstanding credit, now is the time to review it. Check your credit report and see if you can do anything to improve your credit score. If you have any old debt, it is time to pay it off. The better your credit score, the better your chance of getting a low-interest-rate loan.
5. Consider a Co-Signer
If you can’t be approved, consider finding a co-signer — someone agrees to sign the loan with you and is responsible for making payments if you can’t. This can be a great way to get approved for a loan, but it’s important to remember that you’re putting your co-signer’s credit at risk.
If you default on the loan, your co-signer will make the payments. This could damage their credit score, so make sure you’re both comfortable with this arrangement before you sign anything.
6. Find Out How Much You Need
Once you’ve compared rates and found a company you’re comfortable with, it’s time to find out how much money you need. Don’t just borrow the bare minimum — you may be paying more interest charges than you need to.
Instead, look at your budget and see how much you can afford to pay each month. Then, find a loan that will give you the money you need while allowing you to make your monthly payments.
7. Organize All Of Your Documents
Once you’ve found a loan and know how much you need, it’s time to get your documents in order. The company will likely require proof of income, proof of residence, and identification.
They may also require other documents, so ask what you need to provide. Once you have everything together, send your application and await a decision.
8. Get Pre-Approved
Once you’ve found a loan and know how much you need, you can get pre-approved. Getting pre-approved means the company has reviewed your financial information and decided how much they will lend you.
This can be a great way to get the money you need without going through the entire loan process. However, remember that you’re not guaranteed to get the amount pre-approved.
9. Wait For Approval
Once you’ve submitted your application, you can wait for approval. The company will review your information and make a decision. You’ll be given the loan amount and terms if you’re approved.
If you’re not approved, the company will likely tell you why. You can then decide if you want to reapply with another company or try to improve your financial situation.
Applying for a loan can be stressful, but it doesn’t have to be. If you follow these tips, you can be sure you’re getting the best deal possible from companies for the money you need.