Tips to Getting a Loan When You Don't Have a Job

Are you still unemployed and finding it extremely hard to make both ends meet? Do you need money to pay for emergency expenses? Or have you recently lost your job recently and are facing financial hardships?

Unfortunately, cash flow is a big problem in such circumstances. The situation gets worse when most traditional lending institutions are not willing to take the risk of lending to unemployed people. So does that mean unemployed people have no financing options? Fortunately, there are payday lenders that are willing to offer loan for unemployed at high rates of interest.

A jobless person can apply for such loans even if they have no regular source of income. In order to be eligible for unemployed loans in UK, you must meet the following criterion:

You must be more than 18 years of age

You must be a UK resident

You must have a bank account

The best thing about such loans is that these are available with flexible repayment terms. This means the loan terms can be modified as per the borrower's needs. Available at a low rate of interest, the loans are usually available for small amounts in order to lessen the risk for the lender.

Types of Unemployed Loans

These loans can be secured or unsecured. Secured loans are those that require a borrower to pledge an asset as collateral in order to obtain a loan. The collateral acts as security with the lender, who may repossess the asset if the borrower ends up defaulting on a payment. Thus borrowing secured loans comes with its share of risks.

However, since there is collateral involved, these are available at a low rate of interest compared to most other loan types. As a jobless person, the borrower might think twice to use their property as collateral. But borrowing against property is the fastest way to secure a loan when you don't have a source of income. If you have an asset to mortgage, more lenders would be willing to lend you a good amount at a decent interest.

If you find it risky to use your equity in real estate, you might want to go with unsecured loans that don't require any collateral. The loan amount offered is typically smaller compared to secured loans. Moreover, these are available at a high interest rate and for a short period due to lack of security for the lender.

Loans for Bad Credit People

Unsecured unemployed loans are also available for those struggling with a poor credit history, including payment defaults, County Court Judgments, late payments, and missed payments. The borrower can even use these loans to cover any expenses, such as entertaining activities, vacationing, partying, celebrating festivals, or purchasing a vehicle of your choice. Loans for unemployed can even be used for loan consolidation.

In the UK, you can borrow £500-£100,000 as loans for unemployed, which are available for short but flexible duration. Lenders usually do not make any credit checks for offering loans for the jobless and deposit the money direct to the applicant's account within 24 hours.

Depending on their financial circumstances and repayment ability, unemployed people have the benefit of underpayment, overpayment, and payment leave, without having to pay any penalty or extra fee. Is there anything better than unemployed loans for jobless people?

Angie Rees is one of the top Finance Advisers in UK, with an extensive experience in the finance field. Anyone interested to know more about debt and loan situation in UK can contact me.