You’ll often find traditional financial institutions checking your job and credit history. This is to ensure you have a steady income and are capable of paying back the loan before granting the money you seek.
If you do not have a job or good credit, no need to worry. There are many lenders offering payday loans to unemployed citizens, regardless of your employment and credit status. Nonetheless, even as an unemployed citizen, you still need to have some income sources to show.
Types of Government Assistance Recognised as Income
Direct lenders consider quite a handful of government financial assistance programs as income. This is because these benefits are consistent enough to qualify as a steady income. Some of the most common accepted government financial assistance programs and benefits include:
- Pension funds
- Child support benefits
- Unemployment benefit
- Veteran benefits
- Social Security benefits
- Disability income
- Payment of recurring interest or dividends
- Public assistance
- Government annuity payment
All these financial assistance programs are easy to prove as sources of income. Note that the programs and benefits accepted by lenders vary between each state.
In addition, providing your direct lender with a copy of your online bank statement would reveal that you have an active bank account and are a steady income earner.
Is it Really Possible to Get Payday Loans With Unemployment Benefits?
In the United States and many other parts of the world, it is common for unemployed citizens to use unemployment benefits to meet their most basic needs. This government assistance is only an interim income source while the unemployed search for other paying jobs.
When an emergency pops up and your unemployment benefit is insufficient to meet urgent financial needs, you have access to payday loans because most direct lenders see your unemployment benefit as income.
Fortunately, most direct lenders do not primarily focus on a good credit score. So, make sure to indicate your unemployment benefits as income when applying for your payday loan.
For direct lenders who still passively consider credit scores before advancing emergency payday loans, you may need to supply proof of other sources of income you are entitled to. Veteran benefits and child support are examples of additional sources for your unemployment benefits when seeking payday loans.
Nonetheless, the direct lenders have the final say on the amount given through payday loans for unemployed applicants in the long run. This means a terrible credit score may end up leaving you with an amount less than you expected, but you’ll still get your loan agreement.
How to Apply for a Payday Loan Using Unemployment Benefits
First, it is important to have a solid loan strategy when applying for a payday loan. If your unemployment benefits are properly managed, taking a personal loan to cater to your emergencies will keep you away from unnecessary debt.
Always calculate your expenses and ensure your loan payment strategy leaves you with the right amount to meet your financial needs and repay the loan by the due date.
Applying for online payday loans with lenders that accept unemployment benefits is easy and hassle-free. For instance, on MoneyZap, all that is required of you is to fill in some essential details about you and the payday loan you seek. Then, you will be linked to a credible lender that best suits your emergency needs. To meet the requirements, you must:
- Be at least 18 years old
- Be a citizen or permanent resident in the applicable state
- Have a regular source of income
- Have an active and valid bank account
- Provide a phone number and an email address
In addition, because of the peculiarity of unemployment payday loans, it is not unusual for lenders to seek clarification about your unemployment benefit sources. You must provide:
- A valid bank account statement demonstrating that you received the alternative income source in the three months preceding the application
- Evidence of payment from government benefit programs
Frequently Asked Questions
Can You Borrow Money While Unemployed?
You can always seek a cash advance regardless of your employment status. Emergencies can occur at any time, and there are direct lenders ready to give out emergency loans to people living on just unemployment benefits.
You are not subject to any stringent loan agreements like what traditional banks require from you when seeking personal loans. Just apply, and if the lender approves your application, your funds will be released to you.
Am I Guaranteed Approval After Filling Out a Payday Loan Application?
You may need to follow simple application procedures to get payday loans; however, completing this process doesn’t guarantee that you will get the exact funds you seek.
The variation in funds or denial of your application for payday loans is at the discretion of the direct lenders. Denial of your loan may be due to contributory factors on your path, such as not having an active checking account or proving your income source.
What Will Stop You From Getting Payday Loans?
Factors that will prevent you from obtaining such loans include failing to prove you are of legal age, a citizen or permanent resident in the state you are applying in, have a valid checking account, or your unemployment status and alternative income source.
What Other Options Do You Have Instead of Taking a Payday Loan?
Creating a financial plan to help you manage your expenses will reduce your need for taking a payday loan. Seeking payday loans when you are unemployed will only be limited to a real need for them.
Aside from payday loans that don’t require credit checks or investigation with credit bureaus, some lenders also provide bad credit loan facilities for individuals who need desperate bail-out funds.
What Is the Easiest Way to Get a Payday Loan?
The easiest way to get a payday advance is to go through loan facilitators with credible lender networks.
For instance, using MoneyZap grants you access to loan experts and reduces your risk of application denial. This is essential because our vast network of lenders is always ready to help, especially when there is a source of income.
What Are the Benefits of Payday Loans for Unemployed People?
Unlike your regular banks, payday loan lenders don’t require assets before funds are advanced to you. Also, these loan transactions are easily conducted online without complications.
Filling out our application only takes a few minutes and you can get your money as fast as the same day or the next business day. Most importantly, payday loans don’t affect your credit score, and you can always get a payday loan relief to consolidate your loans if you are lagging in your repayment.
Article contributors
Frank is a graduate of the Master's program in Economics Sciences. He has been passionate about writing in the financial niche. He enjoys discovering new ways to improve personal wealth and sharing them with his readers. In addition, Frank likes to travel and play board games.
