Emergency loans satisfy the personal needs of people with different financial needs. Whether you are a student without a stable income or a single mother without any income, it’s close to impossible to get loans for the unemployed. Emergency loans are known due to their availability and a simple loan request process.
As you need to raise your kids, money can’t wait. According to the report from the Bureau of Labor Statistics, the unemployment rate for single mothers who are heads of households and maintain families without spouses present is currently at 7.6%. This is a significant percentage compared with the average unemployment rate of 5%.
That’s when you may need a quick solution to temporary financial problems. Emergency loans for single moms are supposed to cover an urgent money needs, so people typically receive the funds on the next business day upon the application approval.
Generally, online lenders conduct a soft credit check and don’t require many documents. Though, some small loan providers may request additional information.
What Types Of Loans I Can Get As a Single Mother?
A borrower with good credit can apply for any loan type with appealing terms and rates. But if you are a single mother and need emergency help, you must pay attention to many factors while choosing the best financial solution.
There are different loans for single mothers available. They may differ in the repayment period, loan amount, finance charges, and purposes. That is why you must consider all lending options and define the most beneficial one.
In all likelihood, a traditional lender will conduct a harsh eligibility check. That’s why single parents should look for online loan companies or seek government grants. If you still don’t know what loan type will meet your expectations, keep reading. Below we will describe loans available for single mothers.
Payday Loans
A payday loan gives you an opportunity to borrow a small amount of money until your next paycheck. It typically requires high interest and must be paid back in no more than 30 days. Note that payday loans are not available in 16 US states, including New York, North Carolina, West Virginia, etc. That is why state laws are the first thing you should start with.
The greatest benefit of this loan type is that it is easy and fast to get. Payday lenders don’t have serious eligibility requirements. Even with a low income and credit, you can get approved direct deposit loans same day.
If you are a single mother looking for financial help, consider payday as a last resort. Because of high interest rates and short repayment terms, it may be challenging to pay back on time.
Personal Loans
Personal loans for single moms provide flexible terms and amounts. It is a traditional loan type with relatively low interest and the ability to pay back in equal and regular installments. Personal loan is a great option for borrowers who need more than $1,500 to cover any financial issue.
Available amounts may vary from $1,000 to $5,000, and the APR is typically between 6.12% and 35.99%. To repay the borrowed sum you may have up to 60 months. Remember that even one missed monthly payment can spoil your credit and lead to debt.
If you are a single mother, it may not be easy to apply for a personal loan. But if you manage, it will be a great solution for you. As a borrower, you can get a secured or unsecured loan.
Secured Loan
A secured loan uses the borrowers’ property as collateral. And since lenders bear lower risk they charge less interest. Among the most popular types are mortgage, home equity and car title loans. These hardship loans are popular among borrowers with poor credit scores. You should keep in mind that if you fail to repay your debt, you can lose your property.
Secured loans require longer application procedures but help single mothers receive significant financial help with flexible terms.
Unsecured Loans
As you may guess, unsecured loans don’t ask for collateral. They are usually more popular among borrowers due to numerous reasons. Firstly, such loans can be attained within a few hours. If you need instant funds, it is for you.
Secondly, if you get an unsecured loan, you shouldn’t worry about your property. However, if you violate the deadlines you may be charged extra fees. At the same time, such lending options offer smaller loan amounts and shorter repayment periods. The APR may also be disappointing. That is why you should consider the unsecured loan pros and cons before making a final decision.
Health Insurance
Health insurance is a great way to feel more protected and prepared for medical emergencies. Thanks to this program, you can cover medical expenses arising from illness. If you have health insurance, you must make small but regular payments to the provider of services.
As a single father or mother, you have different options for health plans. They may be founded by government or private companies. Among the most common solutions are:
- Medicaid. This governmental program offers affordable healthcare coverage to the representatives of some walks of life. Its services are low-cost or free for seniors, single fathers and mothers, people with disabilities, etc. The eligibility requirements are easy to meet, but you must have a stable monthly income to get approved.
- A parent’s health insurance. If you are under 26 years old, you can benefit from your parent’s health insurance plan in most states. Even if you are married or have children, you are still eligible.
- The Children’s Health Insurance Program (CHIP). It is another way to take care of our nearest and dearest. CHIP covers the child’s visits to doctors and other medical expenses. For this type of insurance, you can’t be charged more than 5% of a family’s annual income.
Scholarships for Single Mothers
Young moms raising children on their own frequently dream of affording college tuition or getting a university degree. Luckily there are different student loan offers and education grants for people with low income.
For example, a Federal Pell Grant allows single dads and moms to access postsecondary education. Unlike loans, grants mustn’t be paid back, but you can’t receive them for more than 12 semesters.
All in all, if you are a single mom and want to get a higher education, you can qualify for special and general scholarships for women. Since student loans may be pricey, scholarships are more suitable for people living on childcare benefits. To manage it, you must monitor all available options and send your applications to grant providers.
Auto Loans
Thanks to an auto loan, a borrower may be able to buy a car without feeling financial pressure. You can apply for this option to purchase a new or used vehicle. Lenders like Wells Fargo allow you to get funds via online application.
Parents that bring up children on their own may not qualify for auto loans because of a credit pull and harsh income requirements. However, don’t think that it is impossible. If you have good credit and a regular source of income, you still have chances.
Auto loans usually have a long repayment period which may be up to 84 months. The APR typically varies from 5% to 14%. The available amount depends on your credit and the chosen lender but can’t exceed $100,000.
Business Loans
As you can understand from its name, business loans are used for setting up a company or small store. If you apply to traditional lenders, getting approved for such a loan will be difficult. You should be ready to go through harsh credit inquiries and deal with loads of documents.
However, you can consider two types of business loans with more favorable terms and rates. Since they are relatively easy to get and pay back, everyone should know about these options, especially people with financial difficulties. So, let’s take a closer look at them.
SBA Loans
Small Business Administration loans are beneficial for people who want to set up their businesses. It is a type of funding issued by a private lender but backed by the SBA. This loan type has strict qualification requirements, but if you manage to get approved, you will get many bonuses.
SBA loans typically come with lower rates. For example, traditional business options have an APR of up to 99%, while SBA-backed solutions charge 10%.
The repayment term is another pleasant surprise for people running businesses. If you opt for an SBA, you will have more time to repay the borrowed money. This period will depend on your business plan and vary from 10 to 25 years.
Moreover, SBA loans allow you to get larger loan amounts without collateral. Thanks to these loan programs, borrowers may be able to get up to $5 million.
However, if you are raising a child on your own and live on governmental benefits, self-employment with SBA will be very difficult to get. But if you are already running a small business and getting profit from it, you should try! SBA loans are the best alternative for people like you.
Peer-to-Peer Loans
Peer-to-Peer or P2P loans are social lending options with many advantages. This loan program allows people to get money from other people. How does it work?
P2P platforms connect people willing to lend money with the ones who need to borrow funds. Unlike traditional lenders, this option enables quick loan approval without setting income limits.
The decision as to your application approval is taken by the money issuer. Since the loan requirements are not stringent, a borrower can receive funds within one business day.
Apart from APR, most P2P lenders charge an origination fee of up to 8% of the loan. Sometimes borrowers may also face late penalties. That is why learning the loan terms and conditions is essential to avoid unpleasant surprises.
Peer-to-Peer loans are frequently used for business purposes and are suitable for parents raising children on their own. Such a lending solution allows people with bad credit and income to get financial assistance. If you can’t qualify for a traditional loan, P2P is worth trying.
Home Loans
Traditional home loans for single mothers may be challenging to get. Most lenders require borrowers to have good credit and a high monthly income. Luckily, you can apply for Down Payment Assistance Programs offered by different organizations and agencies.
FHA loans (Federal Housing Administration) with lower down payment requirements may become your helping hand. This mortgage loan is sponsored by the government and issued by a bank that is approved by the agency. Thanks to the FHA home loan program, you can get approved even with bad credit.
These loans come with the down payments of as little as 3.5%, which is entirely beneficial, especially for the first time home buyers. If you are a single parent, it is a great option for you because you may have up to 30 years to pay back borrowed money.
How Can Unemployed Single Mother Qualify?
At Personal Money Service, we get this request almost every day: “I need money today, but I’m unemployed.” And we understand that all people should have a way to borrow money.
Assuming all the aforementioned facts, financial experts claim that unemployed single mothers will not be able to get a loan. Employment information is a must in our form.
It’s possible to get quick cash loans online, but the only important thing lies in the company’s competence. It’s hard for lenders to provide money for people with no job, as lenders need to have at least some forms of security that their money will ever be repaid.
Emergency Cash for Unemployed Single Mothers
Any lender offering emergency loans for unemployed mothers will definitely require you to prove some source of income you get on a regular basis. You may be:
- self-employed
- receive welfare payments
- get a deposit into your account from investments.
You may also be required to get access to your financial documents or banking history to let the lender verify your ability to pay the borrowed money back.
Bonus: Check how to get from 100 up to 500 dollar loan.
Emergency Cash For Single Moms With Bad Credit
Even if you are a single mother with a bad credit history, you can still get an emergency 200 loan now. How is it possible? Luckily, many online lenders offer bad credit loans guaranteed approval monthly payments for people who raise children on their own.
Such platforms provide loan funds to borrowers without credit checks or official employment. Since they don’t deal with credit reporting bureaus, your low rating won’t be an obstacle. The main thing that matters is your income. It means that you can get a mom loan if you:
- are self-employed;
- receive governmental financial assistance for a single parent;
- have stable earnings from the business or any investments.
However, poor credit solutions typically come with a higher interest rate and a short loan term. What’s more, this option allows you to borrow a relatively small loan amount which may not be enough to cover your expenses.
Should I Apply For Emergency Loans For Single Mothers?
Loans for single mothers can be beneficial if you find a good lending company. Traditional lenders are unlikely to issue you funds, but online ones can become your helping hand. The digital financial market has multiple loan offers for people seeking instant money, and single moms are not an exception.
So, what are the reasons to think about mother loans?
- No credit pull. Each borrower with a small income can get cash assistance online. Most loan providers don’t conduct credit checks, so your rating is not considered.
- No collateral. If you apply for such a single mom loan, a lender won’t ask you for collateral. It means that you don’t have reasons to worry about your property or valuable items.
- Lower interest charges. Lenders usually take care of such parents and charge low interest rates. Thanks to this, you will be able to repay the loan earlier and not feel great financial pressure.
- Quick application process. Sometimes child care may cost a lot. Lenders appreciate your time and efforts. Small personal loans $500 for single parents are usually approved within a few hours, and the money is sent to your bank account in 1-2 business days.
- Beneficial home loan options. Thanks to government assistance programs, single moms have some benefits. If you are raising a child on your own and want to become a home buyer, you will be charged a smaller down payment.
Requirements For Loans For Unemployed Single Mother
It is not a secret that unemployed borrowers usually have more challenges when looking for a lender. To get financial aid, you must find a company that offers bad credit solutions for single mothers. Such lenders don’t have minimum credit requirements and accept different income sources.
Even if you are unemployed, you can receive social benefits from the state that may also include unemployment payments. Most online lenders accept this type of income and issue money without additional questions. All you have to do is to prove you can repay the borrowed sum.
To qualify for a loan, you must meet basic eligibility requirements and provide some documents. So, before applying for funds, make sure:
- You are above 18 years old.
- You are a resident of the United States.
- You can show valid identification as a single mother, prove your household income or relationship status.
- You have a valid phone number, email address, social security number, etc.
- You provide evidence of bank activity over the last few months.
How to Choose the Best Emergency Loan For Single Unemployed Mother
Single mothers can experience financial problems from time to time. Emergency funds may help you get needed support, but only if you understand the gravity of this step. Before applying to a lending company, you must know what you are looking for.
Remember that if you violate your financial obligations, you will damage your credit score and even go bankrupt. To avoid such an unpleasant scenario, you must choose a lender carefully and pay attention to crucial aspects. Below you will find some tips on how to find the best loan option for a single mom.
Know Needed Amount
You must be careful when applying for a loan, especially if you have a low income. Mom loans usually go with lower fees, but they still can lead to a challenging financial situation. If you have no other option but to ask for funds, try taking the smallest loan possible.
The larger the loan you receive, the longer and harder you will repay it. That is why you must decide on a sum that will cover your financial issue and guess how much time you will need to deal with your debt.
Fees
You should know that for mother loans, you may be charged additional fees. They may vary depending on the lender, state law, and credit rating. That is why it is essential to consider loan conditions written in small print before signing loan agreement.
The closing costs may include the following:
- Maintenance fees – a monthly payment for having a checking account with a financial institution.
- Late payment penalties – charged for missed paydays. Note that delays in repayments can damage your credit score.
- Prepayment charges – some lenders don’t allow you to repay the debt before payday and set penalties for this.
Origination payments (loan application fees) – paid for mortgage or home loan request processing.If you don’t know how to predict your final loan amount, use online calculators offered by lenders or apply to cost assistance programs.
APRs
The Annual Percentage Rate or APR is the amount of money you pay your lender for its services per year. In other words, it is your principal loan plus interest charges and extra fees enshrined in the agreement.
APR rates depend on whether chosen companies check your credit score, the state you live in, and the type of loan you apply for. In these terms, the most expensive are payday and bad credit loans. For such financial solutions, borrowers may be charged up to 1,250% APRs. However, most lenders help single mothers by charging smaller interest charges.
Repayment Terms
Another thing to consider is the loan term. It is a set period during which a borrower is expected to pay back the borrowed amount of money. This term usually depends on the lender and the loan type.
For example, cash advance and payday options must be repaid within 31 days. At the same time, if you apply for a car title or personal loan, you may have up to 5 years to cover your debt.
Loans for single moms are usually short-term, which makes them rather tricky. If you apply for funds, the golden rule is not to miss the paydays. Otherwise, you will face extra penalties and spoil your credit.
While choosing the loan offer, think about how much you are ready to pay your lender per month and find the most suitable offer. Longer terms mean smaller regular payments but higher interest in the long run.
Get a Loan with Alternate Income
As you fill out the form, you will see that employment information is not possible to skip. You may enter your previous employment information in case you are allowed to provide such data or
prove an alternative income source.
Always remember:
- An emergency loan for single mothers who are unemployed is a high risk for any lender. Thus, this type of credit option is basically a loan for people with alternate income. The lender must be sure that you will be able to pay the loan back.
- You may be required to have a co-signer to get an approval. This will definitely improve your chances of receiving an emergency loan when you are unemployed, but it is also a large responsibility of your guarantor.
- Such unemployed loans for short period may be provided with a higher interest rate. Although the APR of a loan depends on many factors, so it is crucial to negotiate all the credit fees and terms directly with the lender.
Borrow Responsibly
There are many lenders offering online loan options for single mothers who are unemployed. Be sure that you are aware of all the requirements and terms referred to the loan you are going to
agree to.
The best variant is to turn to a company which has already provided financial help to your satisfied friends or family members, like Personal Money Service. Otherwise, look through the reviews or testimonials from the real clients.
Alternatives to Emergency Loans For Unemployed Single Mothers
If emergency loans don’t meet your expectations, some alternative programs for single parents may be appealing to you. Unlike traditional loans, they are free to use and easy to get. If you have lost hope of getting financial help, consider the following options.
- Church assistance programs. Local churches typically provide help to those who need it. As a single parent, you can get emergency housing, food, bills assistance, crisis counseling, etc., for free as a charity. Church assistance may also include thrift stores and general clothing provisions. If you need any type of above-mentioned support, contact the nearest organizations and learn about available offers.
- Grant opportunities. As mentioned, people with low incomes can receive the Pell Grant and get tuition assistance. To get approved, you must fill out an application on the FAFSA website. The amount you can receive varies from $400 to $5,350.
- VA loans. VA loan is a mortgage option with a more appealing down payment requirement available for military members, veterans, and their spouses. You can get private mortgage insurance at competitive rates if you belong to any of these categories.
- Home energy assistance program (LIHEAP). This option is for people who cannot repay their electricity bills. The program is sponsored by the Department of Health and Human Services and is available to single fathers and moms. You can receive financial assistance for heating and cooling expenses if you meet the qualification requirements. For further details, call 866-674-6327 or go to the LIHEAP website.
- The emergency food assistance program (TEFAP). Administered by the U.S. Department of Agriculture, this program allows low income parents and just people in need to get food assistance. A federal nutrition program purchases healthy foods like fruits, vegetables, and other staples to help billions of families. To get more information about this initiative, visit the TEFAP website.
