Single mothers must perform a formidable job and carry out much responsibility single-handedly. According to the report of the United States Census Bureau, around 23% of children below 18 years of age are living with single moms. Providing for the family and raising children on one income make it challenging for single moms to survive. When unexpected expenses pop up, it can be a disaster for many single mothers. During these challenging times, single mom personal loans may help women to face the challenging financial situation confidently.
Where Can You Find Personal Loans For Single Moms?
Getting approval for personal loans for unemployed single moms with bad credit is quite tricky for those with only one source of income. Having a poor credit history causes a lot of problems for them. This situation is more accurate for single mothers who are unemployed or disabled. Although personal loans are not the only funding option available to struggling single moms with no or low source of income, however, these loans provide much flexibility compared to other options and can be used for various purposes. The eligibility criteria to obtain a personal loan depend on your credit score, financial history, income, and the lender from whom you borrow. With stable income and good credit ratings, single mothers can get affordable personal loans with flexible repayment terms and lower interest rates. However, single moms with bad credit and low finances may have to face challenges and turn out to fair or bad credit lenders.
The following are the few options that enable single mothers to obtain personal loans and meet their immediate needs.
Single mothers looking for personal loans can approach Figure, which helps borrowers to get personal loans provided they have good to excellent credit score ratings. The application process is easy, and single mothers can avail of this loan in a few minutes with a pre-qualification check which does not impact their credit score. Funds can be released through Figure in just two days. The APR rates differ between 5.75% to 22.94% depending on the eligibility criteria. The personal loan amount will range from $5000 to $50,000. The minimum credit score required is 600 and higher. Single mothers can repay their loans in 36 or 60 months
This is one of the best options for single mothers with fair or bad credit. Upgrade personal loans are unsecured; therefore, customers need not use their cars or homes as collateral. The eligibility criteria to avail of personal loans from Upgrade is based on free cash flows. The repayment term is 24 to 84 months, with loan amounts ranging between $1000 to $50,000. The average APR rate for single mothers is 8.49% to 35.99%. Single mothers with a score of 580 can apply for personal loans from Upgrade.
This is an online lending platform that has partnered with a lot of banks so that borrowers, including single moms, can obtain personal loans and can fund their immediate needs. The lending model of Upstart considers employment, education, and other attributes while determining the eligibility criteria of borrowers. The lending model of Upstart leads to 27% more approvals with 16% lower rates than traditional models. Unemployed single moms with bad or fair credit scores can apply for personal loans from Upstart. The repayment term ranges from 36 to 60 months. The average rates may differ between 6.12% to 35.99%
4. Universal Credit
Single mothers with low credit scores can consider Universal Credit as the best option to obtain personal loans. Unlike other personal loan providers, Universal Credit requires a minimum credit score of 560. Personal loans provided by Universal Credit also have lower APR rates than other lenders, enabling single mothers to obtain loans with more manageable payments and terms. It also does not require single mothers to pay application fees or give collateral, and therefore, unemployed single moms having limited financial resources can access their funds quickly. Unemployed single mothers can obtain more extended repayments on their loans; however, it will come at higher interest rates.
Can Single Mothers Obtain A Personal Loan With No Income?
While applying for personal loans, single mothers will be asked about their source of income, and they also have to give proof of their bank statements or pay stubs to verify their income for the job. Many lenders will run a hard credit check on their credit report to assess their creditworthiness. If you’re looking for cash loans for single moms who have poor credit and a damaged credit history, then it cannot be easy to get through the application process or get a good deal. Single mothers can consider co-signer or co-applicant for their loans and agree to make loan payments if they default. Many unemployed single mothers turn to family members and trustable friends with the financial flexibility to cosign on a personal loan. This way, unemployed single mothers can obtain a personal loan and get flexible repayment terms and good deals.
Benefits And Risk Of Obtaining Personal Loans For Single Moms With Bad Credit
Single mothers have to go through a lot of financial pressure as they’re responsible for meeting their family expenses and providing for their children on only one source of income. Single mothers who have lost their job or are unemployed can meet their immediate expenses by obtaining a personal loan. Personal loan makes sense for single moms if they are facing an immediate crisis but have no source of income to meet their needs. The interest rates on loans are fixed instead of variable, making personal loans an attractive and affordable choice for single moms who do not want to put expenses on their credit cards. The interest rate charged on their loans will also not change during the loan term, and they can know precisely the amount of money they have to pay back to their lender every month. Interest rates on personal loans are much lower compared to credit card interest rates, especially for borrowers who have good credit scores. Also, the money that comes through personal loans is more accessible for single moms to pay their immediate expenses like housing instead of relying on credit cards.
Although there are good sides to personal loans, you need to weigh the downsides as well. For instance, it can be difficult for unemployed single moms with poor credit to obtain a personal loan at a good deal. You need to consider the risk and benefits of your financial situation to decide whether obtaining a personal loan will be the right decision. It will help if you learn whether the loan payment would fit into your budget and whether the personal loan has any programs for hardship or unemployment.
Different Loans For Single Moms Who Are Unemployed
Personal loans are a good option for single moms as they are unsecured. In other words, if you are qualified to obtain single-mom unsecured personal loans, you need not risk losing the property or assets if you default on your loan or fail to pay it back on time. However, there are certain situations when personal loans may not be the correct answer. Following are the other loan options that single moms can consider to get financial support and fund their needs
1. Home Loans For Single Moms
Single moms who are looking for ways to obtain a loan so that they can attain homeownership goals for their families should go for a mortgage loan instead of a personal loan. A mortgage loan uses the property as collateral for a home loan which means single mothers can avail of lower interest rates than personal loans. If they are unable to repay the loan, then the lender may foreclose on their property. Similar to any other personal loans, single moms can also qualify for home loans provided they can meet the credit and income requirements as stated by their lender. Unemployed single moms with poor credit can avail of several first-time home buyer programs in the USA to seek assistance and get low-interest rates on their loans. Some examples are FHA loans, VA loans, USDA loans, etc.
2. Hardship Loans For Single Moms
Hardship loans for single moms are one of the best alternatives to obtaining a personal loan for unemployed single moms. Unemployed and disabled single mothers often do not qualify for personal loans as they fail to repay the obligation. Even though you get approval on personal loans, the principal amount will be too insignificant to cover your monthly bills. If you’re unable to obtain a personal loan to fund your expenses, you can obtain hardship loans that are provided by a lot of lenders in an attempt to help unemployed single mothers. Hardship loans are granted to solo parents and other low-income borrowers with financial hardships.
3. Emergency Cash Loans For Single Moms
Emergency cash loans are one of the best alternatives to personal loans for disabled or unemployed single mothers who are looking for financial assistance to get through their financial crisis. Unemployed single moms can be eligible to receive government benefits that provide a wide range of emergency support programs to lower their cost of living. Federal aid is available to a vast number of single moms in the form of supportive programs and affordable loans that help them to meet the immediate crisis and provide necessities for their families. These emergency programs help them to pay for their food, housing, to pay for their medical expenses, or child care expenses.
4. Student Loans
Single moms with lousy credit, and no source of income can avail of student loans which come with low rates of interest and favorable terms. Most are also eligible to obtain free money from the federal government, which is much better than obtaining a student loan. The funding received through student loans or student grants can be used to cover college tuition, board, room books, etc. Pell Grants is a popular college student aid for single moms that are not required to pay and are one of the best alternatives to student loans. To apply for student aid programs and loans, they have to fill out FAFSA. Financial support is not only available for single moms to meet their living costs but also to help them further their education and pursue higher career goals. There are several federal and private student loan programs available for single moms that can help them to continue their education and can be the best alternative to personal loans. These grants can help them to ease their financial burden by covering their tuition, books, and childcare costs.
Obtaining personal loans for single moms with no source of income can prove to be challenging as they often cannot afford to repay the loan if they do not have any source of income. Being a single mother is a tough job, and government assistance programs may fall short of covering all the expenses. A personal loan is a fixed amount of money you can borrow from lenders and banks. Single moms can pay a more significant down payment or take steps to improve their credit score. Further alternatives to private are also available to help them reduce their financial burden.