In today’s economy, many people have been laid off from their jobs. If you are unemployed and need some extra cash to pay for necessities like food or rent, then the Christmas loan for unemployed can be a lifesaver. These loans come with different terms depending on the lender. Still, there are four types that most unemployed borrowers qualify for: unsecured, secured (home equity), cash advance, payday loans, and debt consolidation loans. Read this blog post to learn about all of your options!

Secured and Unsecured Loans

If you are unemployed and have a bad credit score, you can still lend some money from a reliable lender. You can do this by applying for an unsecured loan, where there is no collateral required. The lender will only check your credit score to determine eligibility and what interest rate they can offer you.

Loan amounts usually range from $500-$20,000 with 12-60 months repayment periods depending on the borrower’s financial situation. Meanwhile, secured loans require collateral. If the borrower fails to repay the loan, the lender will seize their assets and sell them to get back some money from what they are owed.

Payday Loans

Payday loans are another great alternative when you have a bad credit score. These loans are small, short-term cash advances that your next payday must repay. Loan amounts usually range from $100-$500 with repayment periods of two weeks to a month, depending on the borrower’s financial situation. These types of loans may have high-interest rates and fees, but they can help you make it through a tight spot when your money is at its lowest.

Cash Advance

Aside from that, you can also apply for a cash advance. Loan amounts usually range from $100-$500 with repayment periods of one to two weeks, depending on the borrower’s financial situation. You can get this type of loan by visiting your local bank or credit union and filling out an application for a small cash advance, similar to earning money at an ATM. Loan approval generally depends on your current employment status, credit score, and monthly income.

Debt Consolidation Loans

If you are currently unemployed or have a bad credit score, there are still options out there for you when it comes to personal loans. There is an option that will fit your needs. That is the debt consolidation loan. Loan amounts usually range from $500-$20,000 with 12-60 months repayment periods depending on the borrower’s financial situation. Like the other loans mentioned above, loan approval depends on your current employment status, credit score, and monthly income.

Now that you know about these options for unemployed borrowers who need some cash to pay bills or other expenses, you need to find the best lender that offers these types of loans that suit your needs as an unemployed. You can check out the My-Quick Loan UK to apply for a quick cash loan. I hope that this article has helped you understand the various types of personal loans available for unemployed borrowers. If you find yourself in need of a loan but cannot qualify because your income is too low, I invite you to give it a try and see if one of these options might work for you!