Are you currently unemployed and in need of some emergency funds to cover unexpected expenses? While it may seem challenging, there are actually several options available that can help you qualify for some emergency loans on benefits, even without a steady source of income.
In this blog post, we’ll explore some of the things that could potentially increase your chances of getting approved for a loan when you’re unemployed. From government benefits to other sources of recurring income, read on to discover what moves to take to obtain the financial assistance you need during tough times.
Unemployment Benefits
Unemployment benefits can be a great source of financial assistance when you’re out of work. Each state has its own portion of benefits that can cover your lost wages for a certain time. While unemployment benefits alone may not be enough to cover all your expenses, they can help supplement other sources of income. However, not every unemployed person will be eligible for unemployment compensation. Most of the time, you must have been fired without cause and meet additional eligibility standards, like having worked a minimum number of weeks in the year before submitting your claim.
Social Security
One potential source of income that could help you qualify for an emergency loan as an unemployed individual is Social Security. If you’re in your golden years and are a proud retiree, receiving Social Security benefits may be your best bet, based on the work history and contributions you’ve made. However, even if you haven’t yet reached retirement age, there are certain situations in which you can receive the payments. For example, if you are disabled or the spouse or dependent of a deceased worker who was eligible for Social Security benefits, you may be able to receive payments.
If applying for an emergency loan with social security being your only source of income, make sure to do thorough research about the eligibility criteria and the terms offered by different lenders before making any decisions.
Recurring Interest
When qualifying for an emergency loan as an unemployed individual, having a source of recurring interest can make a significant difference. Recurring interest refers to the steady stream of income you receive from investments or savings accounts that accumulate interest over time. There is a good option for you: Investing in money market funds that offer higher yields than traditional savings accounts. These funds invest in short-term debt securities and provide a low-risk investment opportunity with relatively stable returns. Additionally, certificates of deposit (CDs) offer fixed interest rates for specific periods ranging from one month up to several years.
Retirement Income
Last but not least, let’s take a look at your 401(k) or IRA. Retirement income can be an asset when applying for an emergency loan while unemployed. If you have a retirement plan in your sleeves, it can provide proof of consistent income that lenders may consider. But note that withdrawing money from your retirement account early may result in penalties and taxes. However, if you’re facing a financial emergency and have no other options, it could be worth considering. Being unemployed can be a difficult financial situation to navigate. Still, options are there for those in need of emergency funds. By utilizing your, you may be able to qualify for an emergency loan.
Additionally, if you have a recurring interest or retirement income, these sources of revenue could also help improve your chances of approval.
