Being unemployed can be stressful, especially considering all the financial obligations you need to fulfil. In this case, you might be convinced that obtaining a loan is your only reasonable option. However, is it really possible for an individual to get a loan even when they do not hold a job?
Typically, money lenders look at different factors when considering your loan application, such as your credit score, debt-to-income ratio, and annual income. Although this might seem disconcerting if you are unemployed, many money lenders are willing to approve your loan application, provided that you have some other form of income. Read on to understand how you can obtain a loan while being jobless.
Can you get a loan without a job?
The simple answer to this question is yes. As mentioned earlier, even if you are not earning a traditional income from an employer, you can still get approved for a loan as long as you have other sources of income, such as disability payments, unemployment benefits, social security payments, child support, pensions, alimony, and the like.
You can also get a consigner, provide collateral, or find an alternative income source from a side gig to boost your chances of getting fast loan approval in Singapore. However, keep in mind that you would have to have a solid plan to repay your loan, especially when you are applying as an unemployed borrower. Falling behind on your payments can do you substantial financial harm.
This is especially true if you have given collateral for the loan. Falling behind on your loan payments may cause you to lose this collateral or to pay thousands of dollars in additional interest. Moreover, you can tarnish your credit score with late or missed payments. If you take out a loan as an unemployed borrower, it would be best to ensure that you completely understand the terms of the loan so that you can pay it back on time without any issues.
Valuable tips for unemployed borrowers
1. Choose a money lender that best meets your needs
Not all money lenders are the same. Different lenders have different credit limits and requirements on income and credit rating. As such, before applying for a loan, it would be good to research a panel of lenders prior and ask for recommendations from family and friends. Applying to random credit institutions repeatedly can be perceived negatively by potential lenders.
2. Know the risk of getting a loan without a job
When applying for an easy loan in Singapore, it is always a good idea to think through the best and worst-case scenarios. Should you be unemployed, you would need to consider carefully whether or not getting a loan is your best option and if you have the capability to make payments on time. Getting a loan as an unemployed borrower comes with risks, so carefully thinking through your decision is necessary for your benefit!
3. Consolidate your debts
Many unemployed people mull over debt consolidation, and there is a good reason for this. By consolidating several debts into a single loan, you can reduce the monthly amount you need to repay. Essentially, consolidating your debts will make managing them easier, and this is an option available even to unemployed individuals. However, do take note that different debt consolidation loans come with different requirements, so it is best to seek financial advice before getting one.
Taking out a loan while you are unemployed can be a good idea if you fully understand what you are getting into. To increase your chances of getting approved for a loan, it would be helpful to develop a solid repayment plan so that you stay caught up on your payments.
If you could use some professional financial help, Orange Credit is here to assist you! We are a reputable licensed Geylang money lender that offers an array of loan services suitable for all types of situations and borrowers, whether employed or not. Our reliable loans, which include personal loans, business loans, bridging loans, and more, come with affordable interest rates so that you can pay yours off easily. For more information on our loan offers, don’t hesitate to contact us today.