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When lenders consider the eligibility factors for the borrowers while extending loans, a regular job is somewhere on the top of the list. Does it mean that you cannot get a
Even the unemployed and those switching between jobs can get a loan, provided that they fulfill certain criteria.Tweet This
Short term loans for bad credit- Can you get an approval?
Now that it is clear that you can avail of a short term
Short term loans can be life-savers between jobs
If you are struggling to find a permanent job, managing your finances may not be easy. Even if you have an alternative source of income, you may still come across a cash crisis time and again. Short term loans can be true lifesavers in such dire circumstances because they have the potential to carry you through the rough patch. They give you the much-needed funds to meet your immediate needs and you get some time to pay them back. The best thing to do is to look for an installment loan that allows you to pay smaller amounts on a monthly basis until the entire loan is paid back. Since you know exactly what you have to pay on the due date, you can plan the payments accordingly. At the same time, being regular with your installments also helps you improve your credit score and trustworthiness in the long run.
Factors that lenders may consider while evaluating your application
Although some lenders may be willing to consider your application, you need to give them good reasons why they should actually approve it despite bad credit and no regular job. There are certain factors which they will probably evaluate closely, considering the circumstances. Here is a list of these factors:
Income: Even if you are between jobs right now, you may still have some sources income. For example, you may be getting good money from a side hustle, which is definitely a trust signal for the lender. The income of your spouse is also a factor that gives you better chances of securing a short term
Assets and investments: Not having a regular job will not make much of a difference to your chances if you have a healthy asset and investment portfolio. In fact, they may even be ready to ignore a low credit score in such a situation. This is because your assets and investments make the lender worry less about the security of their money.
Credit history: Sometimes, a lender may be willing to extend the
What to expect while applying for a short-term
loan if you have bad credit?
Having a bad
- The duration of the
loanalways matters when you are not in a good state in terms of a regular job and credit. This is the reason why you have good chances with short-term loans.
- You may have to pay a marginally higher rate of interest on the
loanbecause the risk factor for the lenders is higher.
- Discussing your option with the lender is a good idea because you may be able to work out a feasible plan that works for both parties.
- Short-term loans may actually help you rebuild your
credit scoreonce you are able to find a regular job and repay subsequently.
Borrowing responsibly is critical
You will probably be relieved to know that you can secure a short-term
Full of practical, time-tested counsel, this handbook offers simple, useful tips and activities to counter the typically negative reactions to job loss, such as loss of self esteem, and explores thoughts and feelings with the goal of healin