Should I Take Out a Personal Loan During the COVID-19 Pandemic?
The coronavirus pandemic has thrown many of our lives into chaos, with many Americans losing their jobs for the duration of the pandemic, or unfortunately, for good as their companies collapse.
Whether you’re facing this situation or wondering if it’s okay for you to carry on as normal financially, we’ll answer all your pandemic-related personal loan questions below to help you make the right decisions.
If You Already Have a Personal Loan
If you have an existing personal loan and you’re struggling to make your normal payments, the best thing you can do is contact your lender and tell them about your situation. Most lenders are doing what they can to help people in this unprecedented time.
Should I Take Out a Personal Loan to Cope with the Pandemic?
That depends on your circumstances and whether a personal loan would be a good answer or a very temporary fix. If you want to get a personal loan now while interest rates are low and keep the money as an emergency fund, or use it to live off for a few months.
The problem with the latter is that we are unsure how long the pandemic will continue to stall our lives, and so you may not be able to take out a personal loan for six months’ of expenses and start paying it off after that if the pandemic goes on for longer than that.
I’ve Lost My Job, Can I Take Out a Personal Loan?
Probably not, unfortunately. If you have a significant net worth you may be able to, or if your partner takes it out for you, but generally you will need to be able to prove your income source.
If you’re panicking, contact any lenders or credit companies you’re already a customer of and tell them the situation – they may be able to extend your credit or stop the situation from getting worse for you.
Then, do some research on what relief is available to you and any state or county help you can receive.
Is it More Difficult to Qualify for a Personal Loan Due to the Pandemic?
In some circumstances, yes. Some lenders have tightened their lending restrictions so you need a better score or higher income, and they are going to be wary of lending to customers who may not be able to pay back the loan in a timely manner.
Of course, no one knows how long the pandemic will continue to seriously affect us, and so they’re going to be unwilling to lend to people who can’t prove their source of income is secure.
I’m (Relatively) Unaffected by Coronavirus, Can I Take Out a Personal Loan for Home Improvements?
If you’re continuing to work and get your salary or income as normal (be that at home or work) and are looking for a way to spend your free time at home productively, you’ve likely considered doing some bigger home renovations.
In most states, hardware stores are still open, so it may even be practical for you to start these improvements.
If you’re thinking about doing something that will cost a few thousand dollars to do, a personal loan may be a good option and there’s no reason why you shouldn’t do them now – interest rates are relatively low at the moment, provided you have a good credit score.
However, it’s more important now than ever to use a personal loan comparison service because lenders are tweaking their requirements and offers, so you need to know that the lender you’re applying for is the most likely to approve you and is giving you the best rates.
Is it Easier to Get a Personal Loan Through a Credit Union over Other Lenders at the Moment?
It may be if you’re already a customer. Credit unions look at your credit score, history, and history with them to decide whether or not to lend to you, not just your income.
So, if you have a long-standing relationship with a credit union and still have a form of income, they may be a good option for you.
How Can I Get a Personal Loan During the Pandemic?
If you still have a source of income then the process of getting a personal loan is just the same as it was before – you should always compare the best personal loan for you and that’s even more important in this time so you can get the best personal loan terms for you.
When you apply with us, all you need to do is spend a few minutes filling in our form and then we’ll compare all the best personal loans and tell you which is the most likely to approve you and will give you the best rate.
To apply for a personal loan with us, lenders require:
- At least 90 days of employment and proof of it (pay slips)
- An income of $1,000 or more a month after tax
- You need to be a US citizen over 18 with a checking account
- An email address and phone number
When we send off your details hundreds of lenders tell us whether or not they’ll approve you, and then we pass on the best results so you can decide whether to move forward.
When you choose one, you’ll go on to the lender’s site to review the terms and confirm. In most cases, you’ll have your funds in just a couple of days.
To find out more and apply, click here.