A financial emergency can happen to anyone, not only to employed people. In fact, the unemployed might need financial help much more than those who have a paycheck coming in every so often.
Its not always easy to get a loan urgently if you don't have a job. But the truth is, there are several ways you can access money quickly, even without a job — as long as you have an alternative type of income such as unemployment benefits or disability benefits.
In this article, we'll explain your options for unemployment cash advances and recommend the best ones.
Types of Loans Available to Unemployed Borrowers
There are several types of loans you can get when unemployed. They include:
- Cash advance apps. These come in handy when you need urgent cash to cover a minor emergency. In most cases, you just need to prove a regular alternative income source to get an instant loan.
- Credit Card Cash Advance. If you have a credit card, you can get cash advances up to a limit. But be careful as interest and cash advance fees can add up quickly.
- Payday loans. Some payday loan lenders offer loans even without proof of a reliable source of regular income. However, you should be vigilant as these can lead to an inescapable debt trap.
- Payday alternative loans (PALs). These are typically offered by credit unions to their members. You need to be a member to qualify for a PAL.
- Personal loans. There are not many personal loan options that accept unemployment. However, some lenders offer new employee loans if you have a new job.
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Finding a Cash Advance on Unemployment Benefits
Although cash advances are easy to get even when you are unemployed, they typically have costly interest rates that could lead you further down the debt trap. You'll want to keep from getting stuck in a cycle of debt at all costs, so be aware of the risk factors.
There are many ways to get a quick loan that doesn't involve getting stuck in a cycle of debt. Therefore, it is necessary to always weigh your options before settling on a cash advance. Always look around you for other cheaper loan options, such as borrowing from family and friends.
Only consider taking a cash advance as a last result.
5 Best Unemployment Cash Advance Apps
As an unemployed person in the US, MoneyMutual is one of the best places to get an instant loan when you are in a financial fix. This app offer loans of up to $5000 with very reasonable interest rates.
Moneymutual is not your typical cash advance app. It is an online marketplace for lenders that offers quick, secure, and efficient access to loans for borrowers. The registration process is straightforward - you only need to fill out a short online form.
If you are approved for a loan, the money is deposited into your account within the same day or the following day.
Brigit is another efficient app to borrow money when you are unemployed. You can borrow up to $250 instantly, but you need to have an active checking account that has received money from the same source for at least two months prior. This ensures that they are lending to people who have an alternative source of income.
The app also allows users to set recurring advances if they think they can overdraw the account. Brigit charges $9.99 per month for this service — along with other premium services. No other charges are involved.
This is a great pick on our list of quick, easy, and rapid unemployment cash advance apps.
MoneyLion allows you to borrow $25 at a time, up to a maximum of $250 altogether. There are no predetermined income requirements. You only require a 60-day-old checking account and a source of income or periodic payments.
You'll pay $19.99 a month for membership plus $0.99 to $7.99 for "turbo" rush funding. MoneyLion's checking accounts, credit builder loans, and other financial services may justify the expense.
The instacash offer is available to the unemployed and those with poor credit. Register on their website, provide the required credentials and apply for a quick loan.
Klover is another top pick for the best unemployment cash advance apps in the US. It is a top option for unemployed people who want quick, easy, and instant cash for an emergency.
According to their website, you can borrow up to $100 instantly if you have a verifiable source of income such as unemployment benefits or child support.
Klover uses a points system to boost the beginning limit, which is smaller than other cash advance apps. Once a consumer signs up, points begin to accumulate and multiply with app use.
Viola Finance is another app that is great for unemployment. If you meet the eligibility requirements, you can access a loan of up to $300 after you link your bank account. The bank account should be:
- Active for at least three months
- Have a minimum balance of $150
- Have proof of income (have direct deposit and other activity)
The app charges between $2.99 to $28.99 a month for the services. The app also supports budget analytics and money management tools.