Used to be that getting a loan of any amount with a decent interest rate was an arduous process. That's not the case anymore. So many folks out there have had their credit ratings knocked around because of the global economic turmoil. Many private lenders have noticed this and have come forth in droves to fill the market demand. The competition is so hot that even unemployed folks have a good chance of landing a substantial loan.
No Job, Under-Employed, Potential Job, or Fully Employed
Having a job, even a low-paying job, of course makes it a lot easier to get a loan. If you are going to be employed soon, lenders are willing to help as well. You may even find a lender who will wait a month or so until you are finally employed before they demand any payment. This will give you money to care for yourself or your family until your first paycheck kicks in.
Brick and Mortar Institutions Are Not the Answer
Though banks, credit unions, and other financial institutions have lowered their annual percentage rates (a.p.r.), they tend to be rather skeptical when confronted with an unemployed potential borrower. You need to check other venues. Check out the yellow pages, the newspapers, or go online to find private lenders who are willing to take a chance on the unemployed and willing to offer a cheap $5,000 installment loan.
Check Online Lenders for the Best Cheap Installment Loans
If you have access to the internet, go online and punch unemployed loans into your browser. You will be rewarded with a vast array of private lenders who can offer you a loan. You have to be sure the lenders you consider are bona fide, have credentials, and you may even want to check them out with the Better Business Bureau.
Pick and Choose the Best Installment Loan for the Unemployed
Once you have found a number of good lenders, consider interest rates and repayment terms. Of course, you want to choose the lender offering the lowest interest rates as well as repayment plans that you will be able to handle. The nice thing about working with lenders online is that you can probably complete the whole process and have fresh cash in your account within 24 hours. Any credentials the lender may need can be faxed or scanned.
Other Considerations for the Unemployed
Sometimes things just do not happen. If you are jobless, your savings depleted, and the prospects do not look good for employment, you might have to make some last ditch moves. You may want to consider selling some of your valuable possessions or offer them as collateral on a loan.
When using collateral, lenders feel more comfortable and you may will probably get interest rates far below what is usually offered to unemployed folks. And this can make a vast difference in your ability to repay.
If push comes to shove, you may want to take valuable possessions, such as jewelry, art, coins, etc., to a pawn shop. Do not take possessions worth more than $1,000. Some lenders will lend money on the title of a late model car so check those out, too. Just remember, if you default on the loan, the lender can seize the property and sell it to cover the cost of the loan.
Look to the Future when Landing a Cheap Installment Loan
If you have manage to land a $5,000 loan while you are unemployed, please remember to take the time to scrutinize the contract, read the fine print, and make sure you are getting the best interest and terms possible. Even a difference of 1% on the a.p.r. can save you hundreds in interest rates. Also, pay attention to fees, sometimes they can become outrageous.