Loans for Stay-at-Home Moms
Recently, I learned that women couldn’t have their own credit cards until 1974! Likewise, most women before that time couldn’t get a loan. Instead, their husbands would have to give their approval both for loans and credit cards. Thankfully, times have changed. However, if you are searching for loans for stay-at-home moms, you may wonder if we’ve gone back in time. Unfortunately, finding loans for women who do not bring in an income is difficult.
Strategies to Obtain Loans for Stay-at-Home Moms
While finding a lender to give you a loan is challenging, if you have any of these options, you significantly increase your chances of qualifying for a loan.
A Good Credit Score
The higher your credit score, the better your loan terms will be. For example, if you have a credit score over 700, you can secure a fair interest rate if you have income or the two items below.
While women can now get loans without a co-signer, that’s not typically the case if they don’t have income. Instead, you will need to find a friend or family member with a steady income willing to co-sign.
If you ask someone to co-sign, make sure you have the means to pay the loan so that you don’t leave your co-signer responsible for the monthly payment.
An Asset to Use for Collateral
If you don’t have a co-signer, you may be able to get a loan if you have an asset you can use for collateral. However, using collateral can be dangerous. For instance, if you use a paid-off vehicle for collateral, the bank can take that vehicle if you don’t make your payments. So, if possible, avoid obtaining a loan using collateral.
Other Options for Loans for Stay-at-Home Moms
Finding a bank to give you a loan when you don’t have income will be difficult. However, you still have options if you don’t qualify for a loan.
Use Your Credit Card
Find a Bank that Asks for Household Income
Another option is to apply for a loan at a bank that only asks for household income, not your income alone. Then, you can give your spouse’s income to qualify for the loan. Some banks will let you take out the loan as an individual using household income, while others will require your spouse to also be named on the loan.
Get a Part-Time Job
As a last resort, consider getting a part-time job. If you don’t want to work outside the home because you need to care for your children, there are many remote, part-time jobs you could do. With a regular income and a high credit score, you would more likely qualify for a loan.
Loans for stay-at-home moms aren’t easy to find. However, you can take steps to improve your chances of qualifying for a loan.
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