Are you Jobless? Short Term Loans Help You

Money problems become prominent during unemployment, but direct lenders can attenuate them by providing short term loans for unemployed. These are online loans. You can access them regardless of your credit history. However, interest rates will vary.

Financial hardship does not stop chasing you even though you have stashed away some money. Numerous reasons often become a cause for the pain of tight finances, but the most popular is unemployment. It is not just money problem. It wreaks havoc on your emotional health. Despite knowing that it is a fleeting phase, many people struggle to bear it. It is truly a heavy cross to bear. In such situation, availing a loan will be a precise decision to take.

Situation 1: If you have good or fair credit standing
Good credit borrowers are also welcome to apply for short-term unemployed loans to tide over. A good credit rating means the default risk is very low and you are highly committed to financial obligations. Your credit report produces credible evidence for convincing us that you will pay off the debt on time. As a result, you get the loan at comparatively lower interest rates.

Situation 2: If you have an impaired credit score
Credit score cannot always be stellar unfortunately. HonorFinance does not treat financial irresponsibility as the only cause for late payments therefore we try to support borrowers with poor credit history too. Because the default risk is high, you will get a deal at a bit higher yet affordable interest rate. We will peruse your bank statement to analyse that whether you will be able to pay back the debt or not. Our concern is your repayment capacity so that you do not fall in debt.

Features of small loans:

  • You will get money on the same working day.
  • Transparent policy will not tie you up with hidden surprises.
  • Your cash flows will serve the basis for repayments.
  • The processing will not kill your time in documentation.

Application procedure for loans for unemployed:

  • Fill out the loan application online and submit
  • Wait for initial-stage approval
  • Submit your bank statement
  • Get money in your account

The eligibility criteria for small loans:

  • Age cannot be under 18.
  • Permanent residence in the UK is a must.
  • You must have an income source.

Income sources accepted for small loans

Paying off a loan is extremely important if you do not want to get tied up with a debt spiral. You must be wondering how you will pay back without a full-time job? You can take out small loans during unemployment as long as you have any source of income. We consider multiple income options so that you do not have to struggle to access money, especially when you need it urgently. Here they are:

  • A part-time job/side gig
  • Social Security Income
  • Capital Gains Income
  • Pension Fund
  • Government Annuity
  • Retirement
  • Unemployment Benefits
  • Disability Income
  • Interest and Dividends Income
  • Housing Income
  • Spouse or Partner Income
  • Alimony or Child Support
  • Savings

Can you apply for unemployed loans during a career transition?

Many people dream of becoming their own boss, however, transition from full-time job to self-employment is not very easy. It may take forever. You may struggle to have enough finances to get your new business off the ground, but Short Term loans for unemployed can fill in crevices.

If you are no longer a full-time employee and completely focusing on your start-up, you can get money if you have any of these income sources:

  • Rental income or any fixed source of income, or/and
  • You have a part-time job, or/and
  • You work freelance, or/and

If you are serving a notice period with your current employer, we will estimate your repayment capacity after taking into account the following income sources:

  • Monthly salary of that particular month, and
  • Any other income source (rental income, dividend and interests etc)

If you are going to serve a notice period, suppose from next month, you will get the loan on basis of your current salary provided the repayment period of the loan expires before you complete the tenure of your service. If it extends, you should have a record of aforementioned income sources.

What if you do not qualify for short term loans for unemployed?

A lender will always look over your income statement and repayment potential before signing off on. Just because the lending procedure is flexible, it does not mean that the lender cannot turn down your application. Small loans for unemployed with bad credit rating may be difficult to have approved as the lender may be sceptical about your repayments. So, what can you do?

Option 1: Arrange a guarantor
Turning down is not the final verdict. You can reapply for these loans by arranging a guarantor with a good credit rating. This mitigates the default risk as the lender can call upon the guarantor to pay off the debt when you fail. Such kinds of loans are called guaranteed loans for unemployed. The major benefit of these loans is you will get them at lower interest rates. However, the guarantor does not bear full debt obligation and will be solicited to pay when all sources of collection get exhausted.

Option 2: Arrange a co-signer if no guarantor
Co-signer enters into a contract when you borrow money with no guarantor and the size of your loan is big. Unlike a guarantor, a co-signer enters into debt obligation by signing a debt contract. It makes them contractually liable to pay off the debt without the lender needing to request them to pay off. Availability of a co-signer can help you get the loan at lower interest rates if they have a good credit rating. In case, any of you fail to meet the obligation on time, the credit rating of both parties will plummet. Same is the case with guarantor.

"Note that arranging a guarantor or a co-signer is mandatory only when you want to borrow a large amount of money. We require neither guarantor nor co-signer if your borrowing limit is small."

Do Short Term loans require a credit check?

Short Term loans require a credit check if you want to borrow a large amount of money. It can leave hard footprints on your credit report. Therefore, we recommend you that you should go through it once to ensure it consists of accurate information.

If you need very little amount of money despite high default risk, you can take out payday loans for unemployed. These loans come with very small amount, not more than £1500. However, the repayment length of these loans will not be more than 14 days. They come with no credit check. Before you apply for them, make sure that you will not struggle with reimbursement or it would be better if you opt for our doorstep loan service to not to miss any repayment. .

HonorFinance provides short-term loans for unemployed to both good credit and bad credit borrowers. Fund you needs today!

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