As anyone who has been there knows, being unemployed can be an extremely stressful and frightening time in your life. Even if you’re collecting unemployment benefits, not receiving a steady paycheck can raise a lot of uncertainty about the future and your finances.
If unexpected emergencies arise when you’re unemployed, you might be wondering how to cover the expenses. Whether your car got a flat tire or your roof has a leak, you might find yourself in a situation where you need a personal loan.
But how can you secure a loan without a job? Here is everything you need to know, and why a collateral loan from a pawn shop might be the best option for you.
Things to Consider When Taking Out a Loan Without a Job
If you’ve lost your job but need to take out a loan, there are some important things you should consider before signing any paperwork. These include:
- Can you make your payments on time?
- Do you fully understand the terms of the loan?
- Have you considered the potential risks, such as penalties, interest rates, and fees?
It’s essential that you think about these questions before getting a personal loan.
Personal Loan Options for the Unemployed
Next, you’ll want to consider the personal loan options available to you. There are several types of loans available to unemployed borrowers, including:
- Unsecured and secured loans: Unsecured loans are not linked to any of your assets, while a secured loan is tied to assets like your house or car.
- Debt consolidation loans: This type of loan is helpful if you’ve fallen behind on your bills. It combines all of your debt into one loan, so you can focus on paying down one single bill.
- Payday loan: This loan is a high-cost, short-term loan that is designed to be repaid when you receive your next paycheck, or unemployment benefits check.
- Pawn shop collateral loan: A collateral loan from a pawn shop allows you to borrow money by providing an item as collateral, such as electronics or jewelry.
What If You’re Not Approved?
If you are not approved for a traditional loan from a bank or an online loan, you can talk to the lender and see if lowering your loan amount could get you qualified. Be cautious about applying with numerous lenders, as each application could affect your credit score.
You could ask a relative or friend for a loan. Or, you could ask your spouse or sibling to be your cosigner. This means that you are asking that person to take responsibility for—and repay—your loan debt.
Another alternative is to obtain a collateral loan from a pawn shop, like Maxferd. These loans do not affect your credit score and don’t require a credit check.
Pawn Shop Collateral Loans
To get a loan from a pawn shop, you can use your possessions as collateral. The pawnbroker will provide a loan based on the item’s appraised value. If you don’t repay your loan in full, the pawn shop will keep your collateral and try to resell the items to recoup their losses.
At Maxferd’s five different locations, including our Lawndale pawn shop, we have been providing customers with trustworthy collateral loans for over 135 years. You can get an instant cash loan for your collateral, including gold coins, designer purses, jewelry, musical instruments, and more.
You can borrow between $5 and $1 million. Then, you have four months and 10 days to repay your loan. There are no monthly payments. You just pay one time and your loan is settled.
We strictly adhere to the California Financial Code, meaning that you’ll never be hit with high-interest rates.
To learn more about our collateral loan solutions, contact Maxferd today by calling (800) 888-PAWN (7296). We’ll help you get the fast cash you need!