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How To Get A Loan With No Credit And No Job

How To Get A Loan With No Credit And No Job

Much of the economic system in society relies on established credit and gainful employment to obtain financial instruments such as loans. It can be next to impossible to acquire a traditional loan from a bank or credit union if there is no basis for qualification or protection against borrower default. That doesn't mean there aren't still opportunities to obtain a loan through less traditional means. Below are some ideas on how to get a loan with no credit and no job.

Pawn Shops

The entire business model of pawn shops is to take personal possessions such as jewelry, computers, clothing, televisions and anything else of value and turn it into cash. The items you bring in are used as collateral against a loan provided to you. If the loan is repaid before a specific date you can receive your items back as it the transaction never happened. There are two catches to such a convenient situation. The finance charges to obtain the loan will be higher than more traditional options and if you fail to repay the loan under the specified terms the items you pawned are forfeit. It is therefore unwise to pawn family heirlooms or other mementos due to the high risk of losing them forever.

Cash Advances

Payday and title loan companies will provide cash advances to individuals even without a traditional job and no credit. Many individuals often have other sources of income such as Social Security, unemployment or long-term disability benefits which would qualify them for getting these types of loans. It is important to have proof of regular monthly income regardless of the source and an active checking account. As long as these two requirements are met it should be possible to obtain cash advances from payday and title loan organizations.

Friends & Family

Although it is highly discouraged to borrow money from family and friends, sometimes it is necessary as a last resort. This is because failure to repay the loan will often result in damaged relationships and possibly cause more problems than it's worth. If however you choose to borrow money, make sure everything is in writing including the amount borrowed, interest on the loan and a repayment schedule. Most disputes come from ambiguous terms and conditions which can be avoided with a clearly written contract. If the transaction is kept legal and professional and the loan is repaid in full plus interest then there shouldn't be any problems.

Federal Student Loan

Federal student loans can be an appropriate source for a loan even without a credit history or active employment. The entire purpose of the federal student loan program is to provide money to students to pay for tuition, books as well as other necessities such as rent and food. In order to qualify you must be enrolled, at least a part-time, in school at an accredited institution that participates in the federal financial aid program. As with receiving any government assistance, you will need to fill out a lengthy application, in this case a Free Application For Federal Student Aid. It is recommended to speak with a financial aid counselor at your educational institution for information on how to apply for a federal student loan.

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