Losing your main source of income is, unfortunately, something that many Canadians have to deal with at least once in their life. There is nothing to be ashamed about, in this day and age and with the economy fluctuating all the time, unemployment rates are higher than you might think. It’s important to remember that you are not alone. While the banks may be unwilling or unable to help, there are still many other options for you to choose from.
How a Personal Loan Can Help During Unemployment
Applying for a personal loan while you’re unemployed is one of the best ways to give yourself a little extra time to figure everything out. Sometimes we chose to be unemployed and sometimes we don’t, no matter what situation you’re currently in you’re more than likely to be stressing about the numbers in your bank account. We get it, being unemployed is not only scary it can make life seem even more expensive than before. The good news is an unemployed personal loan can help you cover:
- Student loan debt
- High-interest credit card debt
- Insurance payments
- Tax debt
- Rent or mortgage payments
- Car payments
- Utility bills
- Medical bills
Not only will a loan help you cover these necessities, but it will also give you what you need the most, a break. You’ll be able to cover all your daily and monthly expenses and give yourself the time you need to find a job that you love.
Did you know that paying off a loan can help your credit score? Learn more here.
Find a Loan Specialist That’s Right for You
Typically getting a loan from a more traditional lending institution when you’re unemployed is difficult, that’s why it’s in your best interest to look for a personal loan specialist who is willing to work with a wider variety of applicants. More often than not, your best option is to look for a lender online. The online loan market has grown significantly over the last couple of years and there are lots of great options for everyone and every financial situation, including being unemployed.
With an online loan specialist, your experience will be professional yet unlike any experience you’ve had at a bank or other more traditional lending institution, you can expect:
- A simple straight to the point online application
- A quick response
- Easy to understand terms
- A high level of convenience
- Little to no stress
- Personalized service
- More options
The best way to guarantee a great experience is to make sure you chose a great lender. Take your time and do some research, that way you’ll know what to expect and there will be less unwanted surprises.
Comparing lenders in Canada? Check this out.
Consider a Guarantor Loan
If you’ve got bad credit or your lack of income is preventing you from getting approval from your bank or another conventional lender, a guarantor loan might be the perfect product for you. In this case, you would need to find a cosigner, someone to “guarantee” your loan payments if you can’t afford them and end up defaulting during your loan term. They would need to have good credit and decent finances in order to be approved. However, if everything goes well, you should be able to get a loan with a reasonable interest rate. Not only that, but each timely payment you make will improve your credit score, despite the fact that your credit health is not a factor (your cosigner’s is).
For more information about guarantor loans, read this.
Be careful! Before you apply for a guarantor loan, it’s best to know about the consequences of not making your payments responsibly. Similar to a regular loan, if you (the primary borrower) stop making payments for some reason, you’ll rack up penalties and do damage to your credit. If this behavior continues for too long, your cosigner will need to pick up the pieces by taking on your payments. If they too default, they will also be held accountable, resulting in penalties and a decreased credit score.
Common Unemployment Loan Requirements
While Loans Canada works with a wide variety of lenders, all of which have their own set of requirements and approval procedures, there are a few things most lenders want.
- You must be the age of majority in your province
- You must have a valid and active bank account
- You must have a good debt to income ratio
- You must have other, steady sources of income
Getting Back on Track
A personal loan can be the first step toward getting your life back on track and your finances under control. A private lender can and will work one on one with you to find the best solution for your financial needs, including great interest rates and affordable monthly payments. Don’t be afraid or embarrassed to ask for help because sometimes a little help is all you need to succeed. When you choose Loans Canada you’ll benefit from…
- Peace of mind
- Installment plans
- The best alternative to dealing with a bank
- More options
- Personalized service
Get the Loan you Need Today
If you’re currently thinking about applying for a personal loan and you’re unemployed then stop thinking about it and do something about it. Starting as soon as possible means you get the money you need as soon as possible. Do the necessary research, pick an appropriate lender and see your money troubles fade away.