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5 Ways to Borrow Money Fast If You're Unemployed That Can Help You Survive

Life is good and worth living when you can afford all the basics and some essential wants. That is why we struggle to seek satisfying jobs. Nothing hurts like not being in a position to provide for yourself and members of your household. Nowadays, money rules the world. Nearly everything requires money. Do not be surprised when I say many friendships have been compromised because of money. A business needs money to run smoothly.

While a business is expected to sustain itself, there are cases where it has to be supported. For instance, it will be absolutely ridiculous to let lack of finances paralyze the operation of your venture just because some of the invoices are yet to be paid. What about maintenance costs at home? The point is, nearly everything depends on money.

Some people work day and night to sustain themselves. It is unimaginable how life can be without money. But again, money can be in circulation, but you personally do not have it. Think of someone unemployed. This is someone who does not have a source of income. Where can he turn to? It is unfortunate that even to take a loan, and you need to have money or proof of income.

If you are unemployed, it might seem challenging to obtain a personal loan. However, it is not impossible. You can successfully borrow money and accomplish whatever you want with it. There are so many loans for the unemployed. The most challenging part is always proving yourself worth it. This blog discusses five ways to borrow money fast if you are unemployed to help you survive. Let us see.

Understand what lenders examine

Lenders critically examine borrowers to determine their eligibility for loans. There are several things that they determine before making a decision to either accept or decline an application. Your chances of securing a loan depend on how lenders perceive you in terms of risks. The common eligibility factors include credit, debt to income ratio, and income. Essentially, your prevailing income determines, to a greater extent, the amount that borrowers will be willing to lend you. It helps then to establish whether you will be able to keep up with the payments. Even if you are employed, but you have a high debt to income ratio, there are high chances of your application being declined. So look at what borrowers check and ensure that you meet all the requirements.

Determine your source of income

As we mentioned earlier, income is a very important factor that lenders examine. Once you lose your job, start looking at alternative ways of earning more. In fact, you should have various alternative sources of income. You don't have to rely only on your job. This will make things easier for you once you are unemployed. And here comes the question – what else can you do to earn more income apart from your job? Several things can be done. You don't even have to start exploiting alternative options just after losing your job.

You can do several things apart from your formal employment. For instance, why can't you begin freelancing part-time? You can write articles or poems and sell them online. The point is, you can use other skills that you have to generate income when unemployed. It will be easier for lenders to approve you for a loan if they see regular income flow into your account.

Safeguard your credit

This is also a very important factor that lenders examine before approving or declining loans. Avoid doing anything that can damage your score. Lowering your credit rating will reduce the chances of being approved. What can you do to avoid dipping your credit score? There are several things. For instance, ensure that you are continuing to pay all your outstanding loans whenever they fall due. This can be challenging because you are not employed.

But then, it can be easier if you have alternative sources of income apart from the job that you had. Also, avoid using your credit cards. This will only increase your debt to income ratio. You will be a very high-risk borrower in the eyes of lenders. Regularly check your profile for errors. One reason why your rating may significantly drop is when wrong accounts are reported under you. Avoid this issue by regularly checking and correcting mistakes on your credit.

Select a lender that match your needs

You also have to examine different factors when selecting lenders. For instance, you have to look at the minimum credit requirements. Some loans suit you irrespective of your credit rating. Determine your rating, and whether you can qualify for a loan from a lender, you have in mind. If you do not qualify, do not apply.

Sending an application may have negative implications for you. Also, look at the amount offered. There are always limits within which lenders give loans. The amount that you want should fall within the limits of the lender. Depending on your situation, certain lenders may be appealing to you, while others may not. Can you try getting a personal loan from a friend? This is one of the best options for you.

Approach the lender and be convincing

As we earlier stated, being unemployed makes you a high-risk borrower. For this reason, lenders may be reluctant to enter into a contract with you. In this case, approaching the lender in person may increase the chances of being approved. Once you get an opportunity to talk to the loan officer, be as convincing as you can. Explain why you need the loan and how you intend to repay now that you are unemployed.

The Bottom Line

It can be difficult to survive when you are unemployed. Even may not be willing to offer you alone unless they are certain that you are going to keep up with payments. However, you can still get a personal loan and use the funds to survive. In this blog, we have discussed what you need to do. You may check here if you need Instant Cash Loan Singapore.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes.

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