Being unemployed can be very painful and stressing. In today’s time when unemployment is on the rise, losing a job can dishearten you or anyone in that matter. It becomes really difficult to meet both ends meet when there is no regular source of income. You may have left the job, but expenses are not going to leave you. Therefore, it becomes challenging to manage money and stress of job loss at the same time.
What is your option in this situation? Getting a loan can help you in managing your finance.
But most of the time, even a jobless person has a bad credit score. Hence, they fail to get a loan or financial help from a conventional lender and look for an alternate source of financing. Here comes a direct lender who shows a willingness to help unemployed people during their difficult time. Online lenders have various loan products for people who have recently lost their job such as no guarantor loans for unemployed. By availing these types of loan, an unemployed person can overcome their financial crisis very easily. The UK’s lending market is flooded with such lenders.
Loan Options Available For Unemployed
No Guarantor Loans: Generally, when looking for a loan from a traditional lender you have to produce someone as your guarantor in order to secure your loan. But most of the time, it is not possible to arrange a guarantor in a short period of time and a person fails to obtain a loan in the absence of a guarantor.
On the other hand, in the case of direct lenders, you don’t have to persuade someone to become your guarantor because they don’t ask for one. Though lenders are taking a risk here by offering you a loan without a guarantor, hence to compensate that risk they charge a high rate of interest. So, in case you fail to make a payment on time, they can overcome their loss. But a higher interest rate should not be an issue for you as you are getting the help when no one else is offering you a helping hand.
Unsecured Loans: The other category of loan an unemployed can avail is an unsecured loan. While borrowing money from a lender, usually you have to keep some valuables as a security such as a car, home, land, etc. That is called secured loans.
Unsecured loans mean no security is needed to obtain a loan. You can get this type of loan from any direct lender in the UK without providing any security or collateral to the lender. There is a risk here for the lender and that is the reason they charge a high rate of interest even on unsecured loans.
Personal Loans: This type of loan can be used for small expenses such as paying outstanding bills, meeting daily needs, etc. You can get 100 guaranteed approval loans in the UK.
Sources To Get Loans For Unemployed
As we have discussed above, there are many ways to secure a loan for unemployed such as traditional lenders, credit unions, online or direct lenders, etc.
First, let’s talk about traditional lenders. As it is widely perceived by many people that taking a loan from a traditional lender is a difficult task because they have very stringent terms and conditions. Apart from that, a good credit score is also needed to secure a loan from a conventional lender. If you have a good credit score and can fulfill all the criteria then getting a loan can be very easy from them.
But due to the deteriorating spending habits of people, most of them have a bad credit score. Hence, securing a loan from a traditional lender is out of scope for them. Their only choice is a direct lender or private lender.
A direct lender is a lending agency that doesn’t pay much attention to your credit score. Regardless of your past borrowing habits, they provide you a loan, albeit at a high rate of interest. You can take a loan from them by filling an online application. They are very prompt and fast in processing a loan application. Once your application has been approved, you can get the money in your account within a few hours.
Overall it can be said that life an unemployed person is not as easy as thought by many. There are various obligations that they have to meet on a daily basis from job search to daily needs. Handling these situations can be difficult; hence many lenders came forward to help them in their difficult times. Though taking a loan can help you, repaying it on time is also important. Your focus should be on getting a job as soon as possible. Once you start earning again, your first priority should be clear all your debt.