What you should bear in mind while applying for loans for unemployed

Posted by

Times nowadays are tough in the financial sense and it is very difficult to meet your daily expenses and still be able to save money for the rainy day. This is the reason that when the rainy day actually occurs it becomes difficult to take care of it. For instance, if you do not have enough savings and suddenly find that you are unemployed, then it may become very difficult to sail through these rough times. Very few people are lucky enough to have friends and relatives who are able to support them during a financial difficulty. This is the reason that many specialist lenders have come up with products like loans for unemployed.

Where you can find loans for unemployed

If you are looking for unemployed loans then your best bet is to contact a loan broker in the country. There are many certified and licensed loan brokers in the UK who are associated with many specialist lenders who provide loans even to people who are in less than perfect financial situations. Most traditional banks and lending agencies provide loans only to people who are gainfully employed and have a good credit record.

However, if you approach one of the loan brokers UK you will be able to get loans even if you are unemployed and even have bad credit to add to your woes. This does not mean that these lenders are out in the market to distribute the money as charity, but they bear in mind the fact that a person, who is unemployed today, need not remain so for a long time. At the same time, if the unemployed person is living on benefits then it is quite likely that he or she is able to save sufficient money every month in order to repay the loan. All in all the specialist lenders associated with loan brokers look at your actual ability to repay the money rather than your current financial status.

What is an Instalment loan and why you should opt for it

Instalment loans are the loans which have to be repaid in instalments over a limited period of time. Most of the long term loans like mortgages, car loans etc. are these types of loans. However, it is also possible to get a smaller amount of money and for considerably shorter periods of time and repay it in instalments. Usually the tenure of these loans is 3 months, 6 months, 12 months, 24 months and so on. Hence while they are short term loans you do not have to repay them as a single lump sum.

This is especially beneficial if you are unemployed because if you opt for a short term loan like payday loan then you will most likely have to return the money in a single lump sum on your next payday. However, if you take an intalment loan then you get a longer period of time to repay the loan. In fact an instalment loan is also a great method of rebuilding your credit, because if you make timely and regular payments then it will go a long way in rebuilding your credit score.

Leave a Reply

Your email address will not be published. Required fields are marked *