Trust your income
Any income you receive can help you qualify for an unsecured loan. You will have to provide documentation, such as a recent statement. Lenders may consider:
- child support
- Pension or annual salary
- Social security
- Minimum required distributions from your retirement accounts
- husband’s income
Being able to document some type of income can mean the difference between getting an unsecured loan versus a secured one.
Trust your origins
If you do not have enough income to qualify for the loan, you may be able to qualify for a secured loan based on your assets instead. Here are examples of assets a lender might consider:
If you plan to use jewelry, artwork, or collector’s items as collateral, the lender will require a professional appraisal and may require physical possession of the item until the loan is repaid.
Check with your bank
Credit unions and banks usually have secured loan options. Practically everyone will take into consideration the various sources of income for an unsecured loan. Only credit unions offer alternatives to payday loans (PALs).
Check out online lenders
An online loan is similar to a loan from your local bank. They usually consider sources of income other than employment. Many of the popular online lenders only offer unsecured loans, but you will find some that specialize in secured loans.
Avoid excessive loans
Equity lenders make loans using your car as collateral. Payday loans charge huge fees. These loans are considered prey. They are expensive, and you can end up paying off the loan amount many times over.
If you default on a property loan, the lender can take your car (but risking your collateral is true for any secured loan). For some payday loans, you can’t miss a payment because the lender will automatically take the money out of your bank account on payday, even if you need it for other expenses.
Check rates and fees. Depending on your circumstances, not getting a job can make you look like a riskier borrower. This may cause you to be charged higher fees for an installment loan.
What to do if you are not approved
If you are not approved, you can try to lower the loan amount or talk to the lender to see how you can qualify. Be careful about applying with multiple lenders, as each application has the potential to damage your credit score. Many lenders provide soft-draw-based information, which does not affect your score. Take advantage of it when you can.
If you do not have income or assets, you will find it difficult to get a personal loan. In this case, you will need to reassess your needs and consider other strategies.
Besides asking for a loan from a family member or friend, you can also ask someone to be your cosigner. This means that you are asking this person to take responsibility for – and pay off – your debts. You can inadvertently give someone you care about a new financial problem if you are unable to pay off your loan.