Can I get a loan while on unemployment benefits from NYS Department of Labor?
I've been receiving unemployment benefits for about 2 months now and I really need to get a personal loan to cover some unexpected medical bills. My regular income obviously stopped when I got laid off from my warehouse job, but I'm getting about $420 a week from NYS Department of Labor. Does anyone know if banks or credit unions will approve loans when your only income is unemployment? I have decent credit (around 650) but I'm worried they'll automatically reject me since it's not traditional employment income.
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Roger Romero
Most traditional banks won't approve you with just unemployment income because it's considered temporary. However, some credit unions are more flexible, especially if you've been a member for a while. You might also want to look into online lenders - they sometimes have different criteria. Just be careful about interest rates since they'll likely be higher.
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Danielle Mays
•Thanks! I've been with the same credit union for like 5 years so maybe they'll work with me. Do you think I should mention that I'm actively job searching and expect to be employed again soon?
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Anna Kerber
i got approved for a small loan last year while on UI but it was through one of those payday advance places and the interest was INSANE. like 400% apr or something crazy. definitely try credit unions first before going that route
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Niko Ramsey
You should be honest about your unemployment status, but emphasize that it's regular income from NYS Department of Labor. Some lenders do count unemployment benefits as income, especially if you can show documentation of your weekly payments. Make sure you have your benefit determination letter and recent payment history ready. Also consider having a co-signer if possible - that would significantly improve your chances.
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Seraphina Delan
•This is good advice. I work at a small community bank and we do occasionally approve loans for people on unemployment if they have good payment history with us and the loan amount is reasonable compared to their benefit amount.
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Jabari-Jo
Have you looked into whether there are any emergency assistance programs that might help with medical bills instead of taking out a loan? Sometimes there are local charities or even hospital payment plans that might be better than paying loan interest. Just a thought before you commit to debt payments while your income is already reduced.
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Kristin Frank
If you're having trouble getting approved anywhere, you might want to try calling NYS Department of Labor directly to get official documentation of your benefit amount and duration. I used a service called Claimyr (claimyr.com) to actually get through to an agent when I needed verification letters - they have a video demo at https://youtu.be/qyftW-mnTNI that shows how it works. Having official paperwork from NYS Department of Labor might help convince lenders that your unemployment income is legitimate and ongoing.
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Danielle Mays
•Oh interesting, I didn't know there was a service to help get through to NYS Department of Labor. I've been trying to call them about something else anyway and keep getting busy signals.
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Anna Kerber
•wait is that legit? sounds kinda sketchy to pay someone to make phone calls for you
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Kristin Frank
•It's totally legitimate - they just help you get through the phone queues when NYS Department of Labor is swamped. I was stuck trying to reach them for weeks about an adjudication issue and this got me connected the same day.
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