Just because you are unemployed, does not mean you have to carry it around as if it is some sort of punishment. In the downward spiraling of the economy of today, millions of folks are unemployed basically because there is just no work to do. That is one of the many down sides of a bad economy. In fact, nowadays folks can even contract personal loans for the unemployed.
Understanding Personal Loans for the Unemployed
Of course, any personal loan for the unemployed is going to have a higher than average interest rate. These higher interest rates are charged ostensibly to cover the risk associated with lending to an unemployed person. There are some deals you can go do bring these rates down. These deals will depend on your financial circumstances including your employment prospects and your preference as to what kind of loan you want to take.
A Personal Loan for the Unemployed Can be Unsecured
If you have no collateral you must avail yourself of an unsecured loan. Collateral is usually real estate, stocks and bonds, estate grade jewelry, even a late model car. Some folks have collateral but do not want to risk it because of the rough economy. The loan amounts for these tend to be rather low and the interest rates rather high. Amounts can range from $5,000 to $25,000. Repayment terms are shorter as well. The loans can mature anywhere from five to twenty-five years.
A Personal Loan for the Unemployed Can be Secured
If you do have collateral and you want to use it to secure your loan, you will have a number of advantages. One of them would be a lender willing to discuss different interest rate and repayment deals. You will also be allowed longer repayment time and be granted a larger loan than if unsecured. Loan amounts can range from $5,000 to $75,000. Repayment terms can range from five to twenty-five years. The term is calculated from the first payment day, and you can work payments out to fall on the middle or last of each month, or possibly some other date arrangement.
If a Job Has Been Promised
If you can prove to your lender, by whatever truthful means, that you have a job waiting for you within a certain amount of time, you will boost your chances of landing a personal loan for the unemployed. You will be able to get repayment terms and interest rates that range somewhere between those for secured and unsecured loans. If you secure your loan with valuable collateral and have a job waiting for you within a certain time, your lender will probably bend over backward to accommodate you with good interest rates and comfortable repayment terms for you personal loan.
Finding a Lender
If you need to find a personal loan for the unemployed, your best bet would be to go shopping on the internet. Punch you browser with the key term Personal Loan. You will quickly see scores of lenders who may be willing to lend to you. You will also find brokers who will take your financial information and then supply you with any number of actual bids from lenders. You can pick and choose among them to get the best interest rates and the easiest repayment terms – easy on your pocket book.
Verify Your Lender
Before you sign anything, check the reputation of your prospective lender. You can do this online as well by checking the Better Business Bureau listings. You can also enter public forums that have to do with personal finance and see what kind of experience other borrowers have had with the lender. Make sure any web page where you divulge information is secure.