If you are worried that there is no way you can acquire cash when you are unemployed, you are wrong. Aside from a few loan types that cater to unemployed individuals, there are also other alternatives where you can recieve money. Carefully choose what option suits you and your lifestyle and only borrow what you can afford to repay.
Ways You Can Acquire Cash
Many years ago, there were limited options for unemployed individuals to get cash. Nowadays, various alternatives are made available to unemployed individuals, whether they have good or bad credit. Below are some things that you can do to obtain cash when you need it even if you are unemployed:
Unemployed individuals can opt for a personal loan. Some lenders even allow individuals with bad credit to apply for fast cash loans. Lenders only require them to have a feasible source of income to pay off the loan.
Child benefits, disability allowance, and other benefits are some of the allowed sources of income lenders consider. Lenders also give the borrower flexible choices of repayment scheme. A borrower can choose to repay their loan weekly, biweekly, or monthly- whatever is most convenient for the borrower.
Moreover, some lenders do not require collateral or a guarantor to qualify for the loan. The borrower does not need to waste their time finding a guarantor. What is important for the lender is the borrower’s capability to repay the loan on time. If you can provide proof of your capability, they would consider you despite your unemployment status, even if you have a lousy credit score.
Alternatively, you can also use your credit card to make cash advances if you’re short on cash. It is also easy to do. You just have to insert your credit card in a cash machine and enter your pin, just like an ordinary ATM card.
However, credit card transactions can be costly as it will lead to interest charges. Interest rates from credit card cash advances are higher than the interest when using your card for purchases. This is why if you do not need cash, it is best to pay using your credit card.
Borrow From Family and Friends
This is the most favourable way to get cash as an alternative to a loan. Borrowing money from your family or friends may be the easiest, but it will strain your relationship if you fail to pay what you owe.
Don’t fall into the trap of thinking that it’s ok to ease off on loan payments just because you’re borrowing from a relative that trusts you. Even if you’re borrowing money from people who love you, don’t overdo it. Remember, just like any lending company, a family can sue you for not paying them back.
Additionally, some people are not comfortable sharing their financial struggles with their family and friends. However, if you are in desperate need of cash to finance something important, it might be worth the risk.
In the event that you are going to borrow from your folks, it is best to create a contract to avoid risking your relationship. What you need to do is to make sure you follow whatever your agreement will be.
Pawn Your Valuables
There are things you can pawn, such as jewellery, watches, or even your car, as a few examples. If you own something valuable, you can bring it to a pawn shop and ask them to appraise it. If you are happy with the appraisal value, you can pawn it in exchange for the cash.
You have two choices in pawning valuables: first is to offer the item as a security for the loan and second, is to sell the item to the pawnbroker. If you choose the former, you should expect higher interest rates than normal loans.
Refinancing loans is another alternative that can help you with your financial needs. If you have equity from your car or home, you can arrange refinancing that will let you cash out a portion of your equity. However, you can only cash out some of your equity if you already have built up a significant amount of equity in your home.
Your equity will build-up as you pay your mortgage. The lower your balance is, the higher your equity build-up. Mortgages offer lower interest rates than personal loans, which is why a mortgage refinancing is more favourable than a personal loan refinancing.
No matter what employment status we have, there will be times that we will need extra cash for various reasons. However, you should not lose hope as there is always a way where you can borrow extra cash even if you are unemployed. As a matter of fact, there are many alternatives for you to choose from, and undoubtedly one of those choices will help you get through your financial dilemma.