Finding Loans for Single Mothers

Being a single mother is a big challenge and not everyone finds that they have the resources necessary to cope well with the situation. However there are a number of loans for single mothers as well as general loans from which single mothers can benefit. This is great news of single parents who are struggling to make ends meet and to support their children through all of the life changes that are taking place.

Cash Advance Loans

Types of loans for single mothers that are quite popular are what we call cash advance loans or payday loans. As the name implies, this kind of loan will allow you to get an advance on your paycheck in order to tide you over.
There are two main ways in which a payday check works:

  • The first way is to write a post dated check to a payday loan company. The company that you have written the check to will then cash the check during that period.
  • The second way is to take out the loan right then and there and make the payment that you need to make immediately.
    These kinds of loans are generally best used for emergency situations only. This is because they can end up causing you some trouble in the long run. Some examples of good times to get a payday loan:
  • Your car is broken down and you need an advance on your salary in order to mend the car so that you can continue going to your job and earning the money you need to earn.
  • Your child has a medical emergency and you need to get the money from somewhere in order to pay for his or her medical bills and procedures.

For these kinds of situations payday loans for single mothers are great and can really make a significant difference to the outcome of the situation in the long run.
Remember to repay this loan as quickly as possible. This is because these loans come with very high interest rates that can make your life very difficult for you if you let them get on top of you. Make sure that you have a plan in place to repay these kinds of loans for single mothers before you choose to take one out.

Auto Loans

Another reason why you may need a loan is because you either:

  • Need a new car
  • Need to repair your car

Consequently there are auto loans for single mothers that you should be able to benefit from easily.
There are a number of different places from which you can get auto loans for single mothers. The first type f place is an actual auto dealership. You can also get auto loans for single mothers from the bank or from an online auto loans company. You need to be careful about taking out loans from online companies. Be sure to check their credentials very carefully first or else you may end up being conned out of the little bit of money that you already have. Make sure that wherever you end up getting the loan form is a legitimate and authorized financial service provider. If it is not then in the long run you could end up in worse trouble then you were before. Loans have to be repaid so it is worth your while to carefully assess your situation before deciding to get auto loans for single mothers because if it turns out that you may be able to manage without a car using, say, public transport instead then this may turn out to be a more financially viable option for you and one that you should definitely consider over getting yourself into the debt that comes with a loan.

If you have a bad credit history then it may be very difficult or even impossible o get a loan form a dealership or bank. If this is the case then online auto loans for single mothers may be the answer for you as these companies often specifically provide loans to people who have bad debt. Remember to think twice about increasing your debt before making this decision. Only get auto loans for single mothers if you really need a car and cannot continue to function without one.

Home Loans

Providing your children with a safe home is one of the more important tasks of single parents and it is one that should therefore take center stage. If you are unable to afford to either buy or rent a home you may want to consider taking out home loans for single mothers. This will help you to provide a home for your family, but it must also be noted that you will be in a lot of debt that you will then have to pay back for a very long time. This is sometimes the only way as not everyone will qualify for housing assistance from the government. Just make sure that you think about it carefully before making your final decision.

Connected to loans for single mothers that will help you to buy a home are mortgage loans. These kinds of loans are however incredibly difficult to get in this day and age, and this is due in large part to the recession that we have all been recently experiencing. To qualify for home loans for single mothers you usually have to have:

  • A very good credit history
  • A very solid employment history

Agencies and institutions that give out loans of these kinds are highly suspicious of anyone looking for home loans for single mothers and are therefore less than willing to give you one. The recession has made it difficult for most people to get loans even if they meet the strict requirements. If you have bad credit then unfortunately there may not be many loan options for you out there to consider, although there are a few sources that will give loans to people even if they have bad credit. If you have bad credit you will need to go to FHA home loan and see if you are able to get a loan through them. There are circumstances under which FHA will make a point of forgiving bad debt.

Student Loans

If at all possible single parents should limit themselves to student loans. Other loans are often unavoidable, true, but if they can be avoided they should. Student loans, on the other hand, are considered in a positive light and are therefore encouraged. Student loans for single mothers allow single mothers to improve their situation for themselves as well as for their children, and this is something that many companies and private individuals are, believe it or not, willing to support. There are a few main types of student loans:

  • Federal Loans: Federal loans are considered to be the best kinds of student loans for single mothers to get as they have a very low interest rate. This means that you will find it easier to pay the loan back when the time comes. However they are far harder to be eligible for. Another great advantage of federal student loans for single mothers is that you do not need to have a good credit history in order to get one. This means that a lot of people are able to get student loans, whereas other loans are harder to qualify for and are more trouble than they are worth.
  • Private Loans: Private loans for single mothers for education are far easier to qualify for, but on the other hand they tend to have much higher interest rates which make them difficult to pay back in the long run and may cause you to default on payments and therefore get yourself into deeper trouble.

When it comes time to repay your student loans for single mothers you could consider getting involved with loan forgiveness programs. These are programs that allow you to work in payment for your loan instead of paying it back in cash. For example if you study to be a nurse and then work in a state designated nursing facility for a specified period of time then you will not have to repay that loan in cash.

Business Loans

Single parents who want to start businesses are eligible to get business loans for single mothers. This is great news indeed, but strangely enough there are not a lot of single parents out there who are aware of this great perk. There are a number of different kinds of loans that you may need to start a business or to keep an existing business afloat. For example you may need to get:

  • Micro lending (very small, short-term loans) for existing businesses, or
  • Substantial venture capital loans to start a new business

In this country we have an organization called the Small Business Administration and this is the company that administers the above-mentioned loans to those entities who need them. This organization will also be able to help you become an entrepreneur as they offer skills training in this regard. The things that the organization offers in order to help entrepreneurs get on their feet are:

  • Education
  • Information
  • Training
  • Technical assistance for existing business owners
  • Technical assistance for future business owners
  • Free, individualized face-to-face and internet-based counseling for small business owners
  • Training to grow your business

With this kind of support it is surprising that not more single parents are making use of this great structure. The SBA offers training and so on specifically to certain disadvantaged populations. As a single mother you should be able to qualify easily for loans for single mothers that will allow you to become a businesswoman and make something of your life. Starting your own business will of course have great financial implications for you. The best outcome, however, is that you will be in a position to improve the situation for your children and allow them to be brought up with a better lifestyle.

The two main programs single parents can benefit from are:

  • The Microloan Program
  • The 7(a) Loan Program

And these are consequently the best business loans for single mothers to look into.

How your credit history affects your chances of getting loans for single mothers

You need to remember that if you are thinking of getting a loan your credit history play a very important part. The question that we will address in this section is just how your credit history can affect your chances of getting loans for single mothers.

The dynamics are very simple to understand:

  • If you have good credit, you can get hassle free loans with very good interest rates
  • If you have bad credit history, you will (usually) have trouble getting a loan and/or your will get stuck with a very high interest rate

This may seem easy to understand but it is important to remember that your credit history is not always something that is within your control and is subject to forces that you may not be able to avoid. Taking out loans can affect your credit history drastically so if you have gotten loans for single mothers in the past then you will probably find that you are now running into a little bit of trouble getting another one. For this reason it is advised that single parents stay far away from loans if it is at all possible for them to do so.

The best advice that we can give you at this point is to do everything in your power to try to maintain a good credit score. If you think that there is a chance that in the future you will need to get a loan, then start thinking about your credit score now. This is easier said than done, of course, but if you have to get a loan then this is an important aspect for you to consider. You need to take the time to check your credit score. This can be done online and for free so it is important that you do so. A credit score of 650 or more is generally considered to be good with 620 being the dividing line between good and bad. If you think that you will need to make use of loans for single mothers then it is important that you have a complete understanding of where your credit score stands at present.

State Assistance

Apart from loans for single mothers there are also a number of other state assistance options that are available to single parents in general and single mothers in particular from the state.

Food

If finding enough food for you and your family is one of the main problems that you are facing then you will be relieved to know that there are a number of programs in place, such as the Supplementary Nutritional Program also known simply as SNAP that provides food to families in the form of a debit card that is preloaded and that can be spent at participating stores. This is a program that ensures that needy families, such as those headed by single parents, not only receive enough food but that the food they receive is also of the highest quality possible.

Housing Subsidies

An important part of being a good parent involves providing a good home for your children. This is something that is not always easy to achieve and, as single parents are not always eligible for loans for single mothers that are meant to be used for housing expenses, there are a number of government programs in place, such as Section 8 Housing, that aim to ensure that single parents are able to provide a safe home for their children.

Health Care

Of course it is of the utmost importance that you ensure that your child is receiving adequate healthcare. This is not something that you will find easy to get a loan for single mothers for, so it is important that you look into the healthcare options offered by your state. All states offer Medicaid, but as these programs are often difficult to qualify there are usually other options on place as well. These vary from state to state so you will have to do a bit of your own research in this regard.

Childcare

Childcare can be expensive but it is also very important that single parents ensure that their children are well cared for when they leave the home to go to work. Most states offer childcare subsidies in some way that will also you to afford this.

There are a number of ways to obtain loans for single mothers and if you take the advice mentioned above you will soon find that you are in a position to not only provide for your family but also to meet your business and educational aims in life. There are a number of ways in which single parents can get help from the state as well as other more private sources in order to get the money they need. The thing that stands in the way of most single parents is not knowing where to look.