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Yes, it is possible to borrow a payday loan if an applicant is unemployed. However, not all lenders will lend to unemployed borrowers. Unemployed borrowers should also be extremely cautious about taking on additional debt without a steady source of income or the promise of one in the near future.
Even though lenders usually do not approve unemployed applicants for things such as car loans or home loans, payday lenders are another story. Payday loans are forms of very short-term financing that have very few qualification requirements.
Can I get a payday loan if I am unemployed?
Fortunately for many people, payday lenders do not always require a borrower’s income to come from a job. Many are willing to approve other sources of income. Some alternative income sources include the following:
- Social security
- Unemployment benefits
While the slow economy has resulted in many pensions being cut, unemployment benefits are now more common due to layoffs and a weak job market. Payday lenders would just need verification of this income including how much time you have left.
For many people, unemployment benefits are their sole source of income, if even for a temporary period of time. Lenders are perfectly fine being paid with the income that borrowers receive from unemployment.
However, some lenders will require that applicants provide recent pay stubs to prove they have a paying job. While applicants that were recently fired could hypothetically show their recent pay stubs in order to borrow money, doing so can result in charges of fraud and even embezzlement depending on a borrower’s state laws.
What Are The Alternatives?
Many times, these types of loans are taken out by people looking for quick cash for an emergency. One of the best things you can do is more financial planning. Make a budget and set aside a certain amount every month. If you’re in school, look into student loans and balance that with a job. Keep in mind, you’ll have to repay anything you take out. Unfortunately, the job market doesn’t always guarantee the wages students want when they take out private student loans.
If you’re on unemployment, it may not be the time to apply for new loans. If you plan ahead, you can refinance auto loans to get lower payments and interest while you have a job. If you have significant credit card debt you can’t pay off each month, it’s also advisable to make payment plans or talk to your credit card companies about your options. Always look at your budget and make adjustments for what you can afford. This will help you with online lenders and loans of all types.