Are There Payday Loans For The Unemployed?
Dealing with a job loss or a situation where you may be temporarily laid off from work due to seasonal slowdowns can have you panicking from not knowing what to do next. The best thing to do when you’re facing this situation is try and get additional income by taking on a second job and get on it ahead of time so that you aren’t suddenly facing a gap in employment because chances are you’ll have big payments coming up that you have to get paid off while you’re looking to get your finances in order. The biggest dilemma in employment gaps or in between receiving a monthly unemployment or severance check is being able to borrow some cash if you’re going to be stuck waiting until your next pay date but have to make payments now. The good news is there are ways to do this by borrowing from lenders who may offer payday loans for unemployed.
Know What Payday Loans Are First Before Attempting To Obtain One
Payday loans are often given different names by financial experts and can have different borrowing options depending on the lender and what the state laws governing them dictate. But the best way to summarize them is that they are very short-term loans usually somewhere in between $200-$500 though sometimes they can reach as high as $1,000. They are loaned out by agencies that are independent from banks or credit unions and usually have much fewer requirements than banks or credit unions do for borrowing money.
So what are the usual criteria to getting a payday loan? Usually you have to meet the following requirements:
- Have a regular verified source of income that you receive weekly, bi-weekly or even monthly
- Have a checking account that you use regularly that you do not mind giving the lender access to
- Have a personal identification document with your photo on it that confirms you are eligible for a payday loan
It is important to know that some payday lenders will actually require that you be employed in order to get a payday loan and will ask for a workplace phone number to confirm this. That’s because payday loans are given their name as a loan you can use in between waiting for your regular paycheck. But there are some lenders who may consider giving you a loan if you have a non-employment source of income such as a social security or disability check, alimony payments, severance pay or even income from self-employed gigs you take part in if they’re deemed sufficient enough to make payments on a payday loan. If you have no income coming in at all, you probably won’t be accepted for any short-term loan. There are several reasons why payday loans need verification of employment or steady income.
Benefits Of Taking Out A Payday Loan
One of the reasons payday loans can be better than other short-term loans is that they’re one of the few short-term loans that are unsecured. For example, if you were going to take out a short-term loan from a pawn shop, you would need to have some valuable items to offer that you could allow them to keep and you’d only be able to borrow an amount at usually less than half of their value. Vehicle title loans are similar in that you’re putting your vehicle up as collateral by giving the lender the title to your vehicle and allowing them to put a lien on it. But payday loans for unemployed generally require no collateral at all as long as you have a checking account. You’ll usually need to write a check to the lender for the amount borrowed that they can cash on the due date, or you’ll need to allow them to make automatic withdrawals on your account. But in generally, payday loans have the following benefits to them:
- Minimal credit score or history requirements
- You can get approved quickly for the amount you want to borrow and have it instantly deposited or wired to your checking account
- You’ll have options to extend a payday loan payment deadline if you can’t pay it entirely all at once
What You Can Use A Payday Loan For
There are many loans out there including personal loans that have questions on their application asking what you intend to do with them. You are usually not required to state what you intend to do with a payday loan so long as you understand the other terms in the contract you sign as far as repaying it is concerned. But payday loans have been used for all kinds of reasons even beyond hardship costs like paying rent or the water bill. Some have used payday or title loans to buy gifts for loved ones, pay for vacation expenses, business assets or other luxuries. It’s just important to know that payday loans should not be thought of as credit cards because they are not revolving lines of credit and should only be used for short-term purposes. If you’re situation. could be considered a dire emergency, it’s wise to explore other options for borrowing cash before turning to payday loans for unemployed.
Applying For Payday Loans
If you’re ready to apply for a payday loan, the process can be done online here without needing to wade through a lot of paperwork, but there will be documents you need to gather that you are required by law to either present in person or fax to the lender. The documents and information you will need handy include the following:
- Your driver’s license or another government-issued photo ID that verifies you are 18 or older and reside in a state where payday loans are legal
- Your taxpayer identification number or social security number which you can find on a valid copy of your social security number
- A blank check or your checking account information that includes the account number and routing number
Payday lenders that are registered in your state are required to follow privacy laws that forbid them to give away personal information to third parties such as your social security number and bank information. You should be familiar with payday loan laws before you apply and check with your state’s registration database to make sure the lender is registered.