The main goal is to show lenders that you can and will be able to repay the loan in the future. Anything that can increase their confidence in their loan being repaid is usually helpful.<\/p>\n\n\n\n
Using Your Credit to Get Approved for Emergency Loans<\/h2>\n\n\n\n
Your credit rating is a major factor in whether you will get approved for any loan when you are without a job. Having favorable credit also allows you a bit more flexibility in choosing loans that have less than predatory terms.<\/p>\n\n\n\n
That is because not all loans are created equal. Each lender is different from the next and some might be better for you than others. Before you decide to get an emergency loan, do your research. <\/p>\n\n\n\n
You’ll need to find out the terms and conditions of your loan and whether you think you\u2019ll be able to handle them. Know exactly how much interest they charge and how exactly they want you to pay your loan back. <\/p>\n\n\n\n
As I said, some lenders have predatory practices and you can end up in a cycle of debt that can be very hard to get out of, especially if you are unemployed which only makes hard matters worse.<\/p>\n\n\n\n
Therefore, if you have a decent credit rating, your chances of getting approved for a loan while unemployed increases. It’s never a guarantee but it helps a whole lot. <\/p>\n\n\n\n
As a place of reference, typically, a\u00a0good credit score\u00a0is 670 or above.<\/p>\n\n\n\n
Related: Installment Loans for Those With Bad Credit<\/a><\/strong><\/p>\n\n\n\n If your credit isn’t in the position to help you get approved, you will need to rely heavily on using alternative sources of income. This is basically any money that you get on a reasonably consistent basis.<\/p>\n\n\n\n Here are a few alternative income sources that you may be getting:<\/p>\n\n\n\n Are you receiving unemployment checks every month? Even though this income usually doesn’t replace your total lost employment income, it is income coming in and can give lenders confidence that these checks will help you pay back their loan.<\/p>\n\n\n\n If you are on Social Security or currently receiving disability benefits, these are predictable payments that lenders can count on coming without fail. <\/p>\n\n\n\n Child support and alimony payments can also be used as alternative income sources outside of employment. If you are divorced, there\u2019s a chance you are periodically receiving alimony payments from your former partner. <\/p>\n\n\n\n Your lender could be satisfied with these alimony payments as regular income. It is not that easy, however. We\u2019ve all heard the stories of spouses that never pay their alimonies on time, or fail to pay them at all. And this also goes for child support payments. <\/p>\n\n\n\n Being able to prove that these payments have been coming consistently is really the key here. <\/p>\n\n\n\n A lender will consider any of these as income: If your credit rating isn’t helping to add confidence in your ability to repay an emergency loan and you don’t have many alternative income sources you may only have one other option and that’s to have a co-signer.<\/p>\n\n\n\n There are many things to consider when asking a friend or family member to co-sign a loan for you when you’re unemployed. <\/p>\n\n\n\n The first is that you may be disappointed when many refuse to co-sign out of fear that they will become liable if you’re unable to repay the loan. <\/p>\n\n\n\n The second, and most important is, that if you do not repay this loan you could damage a close personal relationship. Which is all the more reason to be sure that you can get re-employed or increase other sources of income.<\/p>\n\n\n\n Increasing income is almost always the best option because it’s money you’ve earned and never have to repay. Therefore, you are in the best position to get ahead.<\/p>\n\n\n\n Related: Free Money Hacks to Grow Your Income Fast<\/a><\/strong><\/p>\n\n\n\n We are living in the age of the side hustle and it’s never been easier to make income from home doing relatively simple work. If you can carve out a few hours a day and you have special interest or skill, you could turn that into full time income over time. <\/p>\n\n\n\n Just do an internet search of how to start a side hustle<\/a> and you’ll get a million and one ideas. Just don’t get overwhelmed!<\/p>\n\n\n\nHow to Use Alternative Income Sources<\/h2>\n\n\n\n
Unemployment Benefits<\/h3>\n\n\n\n
Social Security or Disability Benefits<\/h3>\n\n\n\n
Alimony and\/or Child Support<\/h3>\n\n\n\n
Other Alternative Income Sources<\/h3>\n\n\n\n
<\/p>\n\n\n\nWhat Do I Do If I Don’t Get Approved?<\/h2>\n\n\n\n
Other Ways to Create Income<\/h2>\n\n\n\n
![\"\"](\"https:\/\/launchmyscores.com\/wp-content\/uploads\/2021\/05\/launchMyScores-Blog-Image-Template-2-1024x576.png\")
<\/figure>\n\n\n\nStart a Side Hustle<\/h3>\n\n\n\n
Sell Stuff for Cash<\/h3>\n\n\n\n