Life is hard enough for single parents, but when you need to take out a personal loan or a mortgage, things become even more complicated. Single parents are at an inherent disadvantage when it comes to getting a loan, as they usually have lower income and fewer assets compared to a couple. If you have a bad credit score and credit history, it can make things even worse.
What kind of loan can I get as a single parent?
When it comes to taking out personal loans as a single parent, there are several types of loans you can opt for. First of all, you can take advantage of peer-to-peer loans offered by platforms like FinSocial. With us, you can get a quick cash loan directly from a lender for the specified amount of time online without having to visit a bank or filling out tons of paperwork.
You can also get a small personal loan from a bank with a quick repayment term. On one hand, these loans can help you quickly deal with the financial hardship you’ve found yourself in - personal loans are best used in situation when you quickly need to get some extra cash to repair your car, for unexpected medical expenses and more. Additionally, if you repay the loan on time, this will help improve your credit, decreasing your interest rates for future loans.
How can a single parent get a loan with bad credit?
Having a bad credit score can significantly decrease your chances of getting approved for a loan. To mitigate the situation you can try applying for a loan based only on your income. With these loans, lenders check your employment and income but don’t perform a traditional credit check. Alternatively, you can try to negotiate a loan agreement where the lender will automatically withdraw loan payments from your bank account.
Can an unemployed single parent get a loan?
Getting a loan as a single parent can be challenging on its own, but if you’re also unemployed it can be very difficult. In this situation, it’s best if you have a high credit score and a good credit history. If that’s not the case, you need to show the lender that you have money to repay the loan. For instance, these alternative types of income can include unemployment benefits, child support from your former spouse, disability payments and more.