Does Unemployment Affect Getting a Loan?

May 12, 2021 | Louis Tully

does unemployment affect getting a loan

Does unemployment affect getting a loan? The short answer is yes. However, there are more details to the answer, making it a bit more complicated than that. Here's what you need to know about why traditional bank loans are affected, while title loans are not.

How Does Unemployment Affect Getting A Loan?

Being unemployed is never a good thing. It can also cause a lot of unnecessary stress if you don't understand why things are happening the way they are. Here are the main three reasons for why does unemployment affect getting a loan:

1. You Can't Pay Bills When You're Out of Work

This is usually the main concern for banks. Creditors are usually apprehensive about approving loans when the applicant can't show proof of income. This is why the answer is usually yes when asking does unemployment affect getting a loan. It doesn't even matter if the borrower offers collateral that's worth more than the amount requested. It seldom ever goes well when you approach a bank without a paycheck.

2. You Start to Incur Late Fees And Penalties

When you can't pay your bills on time, the creditors take notice. They start calling and harassing you for their money. They're quick to start charging late fees and placing penalties on your account as well. And since you have no way to making a living and paying your bills, it's always impossible to appease them on time.

bad credit score

3. Your Credit Score Drops Drastically

Now that you're out of cash and completely in debt, your credit score starts to plummet. That, in turn, makes you appear as more of a liability to the banks. So, if you go to ask them for a loan, they reject your application faster than they did before. It's a vicious cycle that's hard to get out of.

Does Unemployment Affect Getting A Loan Forever?

Truth be told, while unemployment can affect your ability to get a loan, the damage doesn't last forever. Still, it can take years to repair an unhealthy credit report, so it's important to find a way out while you can. But since improving your credit requires on-time payments and a decent score as a foundation, all of that can seem easier said than done.

FACT: You must have credit to get credit in today's economy, but once you lose enough points from your credit score, it's extremely difficult to get it back.

Does Unemployment Affect Getting A Loan With Collateral?

Most banks don't really care how much collateral you're willing to offer in exchange for cash. They want to see squeaky clean credit scores and high incomes on applications. In fact, some of them will even reject an application before ever looking at the listed collateral because what they consider to be the main factors don't measure up.

If you think that seems unfair, you're not alone. That's why people started looking for and inventing loan alternatives that replace traditional bank loans. One of these alternatives is called title loans. Today, you can get a title loan just by owning a paid-off car and meeting some basic requirements. It's much easier to deal with, has a faster processing time, and allows you to experience financial freedom despite your past.

Meanwhile, you can still keep full possession of your vehicle after getting a loan with the title as long as your contract remains in good standing. This allows you to borrow what you need. Use the funds to pay off recurring debts. Then, start recovering and building up your credit score.

DID YOU KNOW: You can borrow as much as $15,000 in Idaho just by using a qualifying car title listed in your name.

Knowing How Much Money You Need

It can be tough to determine how much cash you need when you're put on the spot. Most people have no idea it can be this quick and easy to get spendable cash from a reputable source. But it is not just possible, it's also quick and practical. That is why you should take time to re-examine your situation before you decide the amount you want to borrow. Could there have been something you missed?

Make a budget to figure out what you're coming up short on. Add your deficits together and the total should be how much cash you need to prevent more credit blunders and financial mishaps. Once you have this amount, you can apply for online title loans no store visit required.

get a quick title loan

What Do I Need to Get A Title Loan

To get a title loan in Idaho, you only need to follow a few easy steps.

Step 1: Apply Online or Over The Phone

Go to the Idaho Title Loans, Inc. website to fill out a short form or call to answer some simple questions. You'll get an answer within 30 minutes or less when the agent calls you.

Step 2: Give Them The Required Items

This is all you'll need to get approved (no proof of income is required):

  • Your driver's license or government-issued photo ID.
  • The lien-free title of the car.
  • The car itself for an inspection.

Apply for A Title Loan Today

So, does unemployment affect getting a loan? While the traditional answer is yes, with title loans the answer is not really. Get the cash you need as soon as today with a title loan!