How can I get a loan if Im unemployed with bad credit?
Higher rates Banks and lenders charge people with bad credit higher rates to protect themselves financially in case of defaults. When you’re saddled with bad credit, it means that you’ve had trouble in the past paying your bills. You may even have had collection agencies calling you. Banks and lenders know that you are more likely to miss payments or default on your loan because of your past history. According to Bankrate.com, the average interest rate on a 30-year fixed rate mortgage loan stood at 5.03 percent in late November of 2009. If you try to get that same mortgage loan with a history of missing payments, you could expect an interest rate of as much as 8 or 9 percent, depending on how bad your credit is. Out of a job It’s trickier to qualify for a mortgage or car loan if you have bad credit and are out of work at the same time. Lenders will want to see that you have enough income coming in to make your payments. You can ease lenders’ concerns if you have a significant amount of
