Maternity Leave Loans For Good and Bad Credit

How do maternity leave loans work?

How a maternity leave loan works depends on the type of loan you use. Let’s review some options, and the basics of how they can work. 

• Loan from a friend/family member: You may have a willing friend or family member that wants to loan you money. While this option can offer flexibility, and likely won’t require a credit check, be mindful of the potential strain it can put on relationships. Before taking the loan, be vocal about expectations. Creating a written agreement can work to protect both parties. 
• Personal loan: Personal loans are a type of installment loan that are funded as a lump sum and repaid in fixed installments with interest over a predetermined repayment period. They typically do not require collateral or a downpayment and come with few spending restrictions. Therefore, you can borrow the amount you think you’ll need, assuming you qualify, and use the funds as needed. 
• Credit card: Credit cards can be used as a way to help manage cash flow when things are tight. However, credit cards can compound interest daily, meaning you can end up paying interest on interest. Using credit cards should be viewed as more of a temporary way to manage cash flow to avoid a seemingly endless cycle of debt. 

Can I get a maternity leave loan with bad credit?

Bad credit individuals may face fewer options and a higher cost of borrowing, among other challenges. Whether you qualify for a maternity loan or not depends on the request and the lender. Requirements to qualify can vary by lender. Just because you may not qualify for some lenders, does not mean there are not others that might be able to help. In addition, some lenders may cater toward helping those with bad credit. Ultimately though, the best way to increase your chance of approval is to boost your credit score before applying. Alternatively, you may be able to apply with a co-signer with good credit. Review your credit report to determine the best course of action. Through credit monitoring services, you can access your credit report as well as insights for boosting your score. 

Can you apply for a loan while on maternity leave?

You can apply for a loan when you’re ready. If you’re already on maternity leave, you may find this to be the best time. Planning ahead is important though if you need the money while you are on maternity leave. While some lenders can approve and fund loans quickly, it can still take a little time. 

How much can I borrow for maternity leave?

The amount you can borrow for maternity leave through a loan can depend on the type of loan and what you qualify for. Personal loans can be offered up to $100,000, depending on credit score. Most lenders have a minimum loan amount as well as a maximum loan amount. The applicant(s) will then need to qualify for the loan amount requested and or offered. If you apply for more than a lender can offer, oftentimes they will extend a counter offer for a lesser amount rather than just denying the loan. Remember that lenders are in the business of loaning money, and therefore, want to find ways to make a loan work. To find out how much you qualify for with a personal loan, check offers with no credit score impact in seconds at Acorn Finance. 

Will taking a maternity leave loan affect my credit score?

Taking a loan of any sort that is reported to major credit bureaus can impact credit score positively and negatively. Starting with the negative, you may notice your credit score dip after taking out the loan. This can be attributed to  a hard credit pull and or taking on debt. However, over time with on-time payments you can watch your credit score increase again. With enough time and on-time payments, your credit score can climb higher than when you first took out the loan in some cases. Monitoring your credit score on a regular basis can help you learn what helps and hurts it the most. Credit scores can be sensitive, and fluctuation can be healthy. 

Can I apply for maternity leave financing if I have already started my leave?

If you’re already on maternity leave you can apply for a personal loan. Personal loans can be utilized at any time. Once approved, you can receive funds to spend as needed. Repayment begins in 30-45 days after approval and occurs monthly for a predetermined period in most cases.