Money is something that a lot of people spend time worrying about. If you are tight on money right now, you may be looking for ways to build some breathing room.
One way to do this is to take out a personal loan. You would be far from the only Canadian to do this, as an estimated 65% of the population does this.
However, you may be concerned about your chances of qualifying for a loan if you have no proof of employment.
Can you get a loan without income verification? If so, what are your options?
This guide answers those questions and more.
Secured Loan
One option you have for a loan without proof of employment is to go with a secured loan. What you need to know about this type of loan is that to get this, you have to put up some sort of collateral. There are a few ways that you can do this.
Usually, it requires putting up an asset that has some value. This can turn into a car title loan because some people only have a car that is worth enough to offer as collateral. The way this works is that if you fail to pay the loan back to the lender in an agreed-upon time, you have to give up your car title to the lender to pay your debt.
Another option you have for this is to try to pawn your items at a pawn shop. This works similarly to the car title where you put up an item of value to try to get some temporary money to get out of the situation.
Then, you have a certain amount of time to come back to the pawn shop with that money plus interest. If you do not have the money to pay the pawn shop owner, they have the right to sell your item to the general public.
Items that people may choose to put up as collateral here include jewelry, antiques, rare collectibles, and more.
Home Equity Loan
Another thing that you can do without proof of employment is to get a home equity loan. How this works is that you have to determine how much your home is worth on the open market.
Then, you need to subtract whatever you owe on the principal of your mortgage from this to get your home equity worth. In Canada, you can borrow up to 80% of your home equity.
Let’s just say that your home is worth $500,000 now. However, you still have to pay $150,000 for your mortgage.
In this situation, you could borrow 80% of $350,000. So, you could take out up to $280,000 for a home equity loan.
You may want to be careful with this option though. That is because you could be jeopardizing your home if you fail to pay this type of loan back.
At the very least, there could be a lien placed on your house for failure to pay this debt. There may come a day when you try to sell your home and you may not be able to collect any of the equity from it if you fail to pay your debts.
Think carefully about if this is something you are willing to risk.
Quick Cash Loan
For people that only need to borrow smaller amounts of cash, they may consider a quick cash loan. Usually, this does require proof of employment to qualify. However, there are ways that you can get around this.
The main thing you are going to need in this situation is some sort of documentation. If you physically cannot work for some reason, this is especially important. You can show documentation such as a note from a doctor, an insurance claim, a disability claim, and more.
These are usually enough for people that have not been physically able to work for a while. You can even qualify using a detox center claim if you are currently in recovery from addiction.
If you have been laid off or fired lately, you will need to show proof of this with an employment insurance claim. This shows that you are collecting unemployment and that you have some sort of income coming in to pay this loan back.
If you do not have any of this documentation, you are going to have to talk to your lender to try to get a more unique arrangement.
Cash Advance
Finally, you do have the option of taking out a cash advance if you are tight on money. You can do this by using your credit card at an ATM. Here, you will have to know what your credit limit is and get an idea of how much your local ATM will let you take out at one time.
Do be careful if you go this route though. Interest rates tend to be very high on credit cards, especially with cash advances. The interest starts immediately, so there is very little grace period when it comes to paying this type of loan back without significant interest.
Get a Loan Without Proof of Employment
These are some options you have to get a loan without verification of employment. You can choose to get a secured loan, take out a loan against your home equity, and even get a cash advance.
However, there is one option for a loan without proof of employment that does not require collateral or a credit card.
That is a quick cash loan. Click here to apply for this loan.
