Parenting 101: Are stay-at-home moms eligible for a loan?

It must be a million-dollar question. Do stay-at-home moms have the option to borrow money from banks or other loan institutions since these lenders require the borrower to have an income? Of course, how would they know you are capable of paying their money back if you don’t have a salary?

It is one of the requirements when you apply for a loan, the proof of income. Then how would a stay-at-home mom with no evidence of income acquire a loan? Well, there are a few options for housewives. 

The Options That Can Help You Borrow Money
As a stay-at-home mom, there are still options that may work for you given your situation. If you don’t want to involve your husband in this loan for some reason, you should start considering your options below. 

Apply for a credit card with a 0% introductory rate. The zero interest rate lasts for up to 12-18 months, so it is a good option for you. There are credit card companies who only ask for your household income. Do your research and make some phone calls, and confirm this before applying for a card.

You can also look for a lender who considers household income instead of your income for a requirement. Having a good credit score isn’t enough for applying for a loan. Some lenders won’t approve your application until they see your spouse’s income. 

If you have something valuable under your names like a car or anything that a lender would accept as collateral, you can offer it. In this way, the lender will feel secure that you will pay your debts or if you fail to do so, they can get something from you.

You can always opt for a gold loan. If you have gold jewellery, you can use it to acquire a loan. By pledging the gold to the lender, you can have the cash in your hand as soon as you finish all the paperwork and surrender the jewellery.

A co-applicant is also a good idea to consider. Look for a co-applicant that you trusted and is financially capable of paying a loan. This will ensure the lender that they won’t lose their money.

Peer-to-peer loans are also famous, especially to those people who don’t have the needed requirements to apply for a loan in a bank or other loan companies. It is safe to borrow money in P2P lending but do your research even though the risks are inevitable in all lending options. Risks are present whether you borrowed from a bank or a P2P Lending.

If you are a stay-at-home mom with a bad credit score, but there are options for individuals with a bad credit history. You have to understand and decide according to your situation. 

You can check this site www.creditninja.com for Bad Credit Loans. You can also ask the institution regarding your condition. Don’t rush in applying for a loan or a credit card if you are not yet confident they will grant you. A loan or credit card application that is being declined may hurt your credit score.

Your Alternatives
Even housewives can also apply for a loan if they are eligible. It is normal that you will have a hard time applying for a loan if you don’t have a job. Loan institutions are businesses, and they can’t afford any losses. Here are some alternatives that will lend you extra money in case of emergencies.

You have to apply for a job. There are a lot of options for stay at home moms when it comes to working. You can always look for a part-time home-based job. It is prevalent nowadays. It may be an unstable job, but you are still earning. And most lenders consider this and may grant you a loan.

Adjust your lifestyle. You may have to cut down some of your monthly expenses to be able to save money for emergency purposes. With this, if you need money for something essential, you have cash that can support your needs without borrowing from a lender. Live your life according to your income. Don’t overspend your money.

Organize your budget and your savings. Separate your savings into different uses. And create a monthly goal for your savings. It is crucial as a homemaker that you will be able to budget your household income wisely. 

Takeaway
As a mom and a wife, you must adequately dispense your household income into proper use. If you think your income couldn’t support your current lifestyle, you have to cut it down and adjust to what your income can support. Do not take your savings for granted. It is always better to have savings that can help you in time when you need it than to get a loan that has a rigorous application process and interest rates. 

Tiffany Wagner is an article writer that is well-rounded in writing topics about credit, loan management, and other financial management. She is a working mom who loves to cook and read lifestyle magazines in her free time. 

Photo: Freepik

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