As of October 2018, the employment rate in the U.S. has gone up to 96.3%. This represents an increase of 0.4% from the year before.
On top of that, more small businesses have opened, with their latest count at 30.2 million. They employ 47.5% of the country’s workforce, giving jobs to 58.9 million people.
But what if you’re part of the 3.7% of the unemployed and you’re now running low on funds? You know that you can’t rely on a bank loan since most, if not all of them require employment.
This is where loans with no credit check come into play.
There are plenty of reasons you’d want to turn to these financial services, and we’ll take a look at eight of them. So, keep reading!
1. Loans with No Credit Check Prioritize Your Repayment Ability, Not Your Credit Score
According to Forbes, lenders rejected one in three mortgages applied for in 2017. The Washington Post says it’s one in nine. WP also reported that 1 in 4 refinancing applications went down the drain.
Whichever is more accurate, the reason behind the rejection is the same: bad or poor credit score.
That’s bad enough as it is. What makes it worse is that these were applications of employed individuals. So, if they got rejected, there’s even less hope for unemployed applicants.
That’s because lenders consider credit scores the greatest factor when considering loan applications. If it doesn’t meet their qualifications, they likely won’t look at the rest of the applicant’s files.
Don’t worry though. No credit check loans don’t follow this super rigorous qualification process. After all, they don’t conduct credit checks.
What’s more important to no credit check lenders is an applicant’s repayment ability. That means even if you’re unemployed, you can qualify so long as you have another source of income.
Payday loans are one example of loans that even the unemployed can apply and qualify for. Payday loan lenders accept other income sources, like a pension or Social Security income.
2. No Credit Checks Mean Higher Odds of Getting Approval
Since these loans don’t need to uncover your credit score, that already means higher odds of approval. As someone without work at the moment, this is welcome news. Especially if those digits in your bank account continue to drop.
3. Many No Credit Check Online Loan Lenders Have Quick Processing Times
The processing times of traditional loans can take up to seven days or longer. But even after waiting, applicants are still unsure whether they qualify or not.
No credit check loan lenders don’t need that much time. The fact that they won’t have to run credit checks already shorten the processing time.
Depending on the type of loan you apply for, you can get the loan processed within a day! What’s more, if you get approved for these same day loans, you’ll get access to the money within the same day.
4. Funding for Medical and Health Emergencies
Every day, U.S. emergency departments see more than 375,000 people. That’s how common medical and health emergencies are in the country.
To make matters even worse, emergency room visit spending has grown by 31% from 2012 to 2016. In 2016, ER visit costs averaged $1,917.
Even with health insurance, you still likely would have out-of-pocket expenses. If you’re unemployed, this would put even more stress on your already-stretched budget. You may not even have enough for the needed medicines or therapies!
Luckily, no credit check cash loans are available for these types of emergencies. Again, many of these financial services have quick processing and approval times. As such, it can be the lifesaver you need if you find yourself or a family member in the hospital.
5. Your Mortgage or Rent Payment is Almost Due
In the last quarter of 2016, almost 16% of home buyers’ income went to mortgage payments. Although this percentage fluctuates, mortgage payments remain the biggest income-consumer. It has been so since 2010.
Now, let’s say you’re like most mortgage borrowers who pay around $1,000 every month for your home loan. This wasn’t an issue when you were still employed. But now that you’re between jobs, that’s a huge amount of money you may not have lying around.
You can’t afford to miss your payment, because it’ll make your mortgage cost even more. Late fees can be exorbitant, not to mention a complete waste of your precious funds.
But what’s scarier is defaulting on your loan, which can lead to foreclosure. Although foreclosure may take up to three months, it’s not something you want on your record. Besides, this can mean you having to give up your home.
So, rather than experiencing all these, why not consider a no credit check loan instead? Apply for one before you miss your mortgage’s due date. This gives you at least one more month to look for work and not worry about missing this month’s payment.
The same goes true for renters. If you signed an agreement to pay, say a 5% late fee, that’s money that in essence, goes to waste. A $25 late fee on a $500 rent may seem small, but that’s still money you can use for more important things.
6. You Need Professionals for House Repairs
For simple house repairs, like leaky faucets, you can go DIY to save on cash. But for bigger issues, like leaks on the roof or faulty electrical systems, it’s best to hire pros.
The problem is that your unemployment means you’re strapped for cash to pay these experts. At the same time, you can’t afford to not have these repairs. For one, they can worsen and become even more expensive, and two, they can be dangerous.
FYI, leaky roofs are the gateway to mold growth and infestation. Not only are these microorganisms ugly, but they can also cause a wide range of health symptoms.
This is especially true if you or a family member is one of the 24 million people in the U.S. who have asthma. Or one of the 50 million Americans suffering from allergies every year.
Note as well that faulty electrical systems can give rise to house fires. Of the estimated 364,300 residential fires in 2016, 6.5% were due to electrical malfunctions.
In any case, these statistics should tell you that you shouldn’t delay such repairs. Personal loans with no credit check can help you cover the expenses. Since you can get access to the funds in as little as one day, you can have these repairs done ASAP.
7. For Other Emergency Expenses
No credit check cash loans are also a viable option for emergency car repairs. Like with house repairs, many vehicle problems will only worsen over time. The bigger the issue is, the more expensive the fix.
Besides, you most likely would need your car as you look for work. You don’t want to be late for that job interview, do you?
Other expenses that a cash loan with no credit check can help you cover are almost-due utility bills.
There’s the electricity bill, for instance, which averaged $111.67 monthly back in 2017. For the unemployed, that’s a huge chunk out of your wallet. Depending on where you live, you may have to pay even more on disconnection and reconnection fees.
Aside from more expenses, having no power is a huge inconvenience. That can even limit your job search, especially if you’re looking for work online.
A no credit check cash loan can help you avoid the consequences of these situations. These loans will give you access to the funds you need as soon as possible.
8. The Most Basic of All: To Put Food on the Table
In 2017, people in the U.S. spent an average of $7,729 for their food alone. That’s about $645 every month. Money that you may not have at the moment, seeing as you’re out of work.
You may not have the need for seven of the other things listed here, but you need food. It may not be that expensive, but it’s something you need every day, at least three times a day. In short, even if you’re running low on funds, you still need to spend money to put food on the table.
A no credit check online loan can help ease your worries about not having the ability to do so. You can use the funds to stock up your pantry and fridge as you continue looking for work.
Fund Your Job Search with a No Credit Check Online Loan
As you can see, loans with no credit check can be a lifesaver for those out of work at the moment. It can help bridge the gap between now and the time you’ll be back in the workforce.
In fact, there are many other ways you can use such loans aside from the eight above. But what we’ve enumerated should be enough for you to consider turning to them when you need quick funds.
Ready to start looking for funding sources while searching for work? If so, then make sure you check out our guides on the best loans without credit checks.