How To Increase Your Chances Of Qualifying For An Unemployment Loan?

Vehicle title loans are another form of credit that may not require employment verification. So long as you have a source of income, you should be able to qualify for an auto title loan. The requirements are a lot more flexible with an auto title loan due to the security it provides. If you miss a payment, the lender can use your vehicle as collateral.

Unemployment Lines Of Credit

Another loan you can get without employment verification is a line of credit. Lines of credit are great for unexpected expenses, as you’ll have a reserve of cash you can use whenever you need. You only need to pay interest on the amount you use and like a credit card, you regain access to the funds as you repay the amount you use.

Best Unemployment Loans In Canada 2022

Essentially, getting approved for the best unemployment loan in 2022 is all about your creditworthiness. While it can be embarrassing to declare your lack of employment, your lender simply wants to know you’ll be able to pay off your debt without issue. As long as you’re a permanent Canadian resident with decent credit, are past the age of majority in your province or territory, and have an income large enough to cover your payments, then you shouldn’t have too much problem qualifying for an unemployment loan.

In addition, there are a few things you can do to increase your chances of approval for a favourable loan amount, interest rate, and repayment plan, including but not restricted to:

  • Complete your application honestly – Although every lender has different requirements for their potential clients, filling out any questions or details they request is the first step to any good loan application. Doing this allows them to check your financial health and lets them know you’re a serious borrower.
  • Increase your credit score – Not every lender checks credit However, many do because it tells them how you’ve handled debt in the past. You can gradually improve your credit score by paying down your existing credit products, disputing errors on your credit report, and other simple tactics.
  • Consolidate existing debts – The more debt you have, the less likely you are to get approved for the loan you want, This is because a lender will see that whatever income you have coming is already being used to cover the preexisting debt payment.
  • Provide security – Some lenders will accept collateral, such as your vehicle, home, or another asset. This can both increase your approval odds and help you secure better loan conditions. Be careful. If you default on too many payments, your lender will have the right to seize your asset and sell it to cover your debt.
  • Get a cosigner – Otherwise known as a guarantor, you can also increase your approval chances by getting a stronger candidate to cosign your application if your own finances or credit aren’t good enough. Make sure they’re fully aware that your loan payments will fall to them if you cannot afford them.

How To Choose The Right Unemployment Loan Lender?

Remember, there are plenty of lenders across Canada that can offer you an unemployment loan. However, you might have to look outside of banks and credit unions, where requirements can be tougher, meaning you usually need a job to qualify.

Instead, you may need to apply with an alternative lending company, such as a private lender, no-credit-check lender, or payday lender. These institutions are usually much more lenient with their restrictions, as long as you can afford your loan payments. They can also have faster approval times and more adjustable repayment plans.