Are unemployed loans similar to payday loans?
People with unstable incomes due to constant job loss may have different financial situations. For instance, issues like poor credit scores, the kind of benefits received from the government, and the duration of being unemployed and waiting to get a new job are always considered.
In such scenarios, payday loans for the unemployed are suitable. The primary reasons will be quick funding and easy-to-repay options. With bad credit and no job, you will always be a risky borrower for any lender. Payday loans are still available then.
Unemployed loans can be an alternative to those loans. Remember, these are accessible for a higher amount and longer duration than payday loans. In two ways, you may find similarities between these two quick funding sources during the unemployment phase. These are:
How to prepare for unemployed loans with bad credit issues?
Consider many things before applying for unemployed bad credit loans. It becomes more critical since you are struggling with no job and poor credit issues, raising concerns further. Do your homework on these pointers:-
Review Your Budget: The first crucial thing is to analyse your budget. It will help you obtain an affordable amount, making it easier to pay later. Getting these loans from us means you do not have to pay more pounds from your pockets.
Minimum or Maximum Borrowing Limit: You must decide the correct limit to borrow. Lenders often set the minimum and maximum limits according to the amount you want to borrow and your current affordability.
Interest Rate and Repayments: Another thing to look for is the interest rate and repayment mode. Choose a deal where the interest rate is manageable for your part-time income or benefits. Similarly, flexible repayment terms should be there.
Guarantor or No Guarantor: If anyone is ready to be your loan guarantor, you can go for guarantor loans. Otherwise, options are available with us on loans for unemployed with bad credit and no guarantor with direct lender norms.
Secured or Unsecured: You need to check whether you can secure the loan with an asset. If you have, getting a higher amount is feasible with a lower interest rate. On the other hand, with no assets to pledge, going for unsecured loans is suitable for the unemployed.
What factors matter a lot on unemployed loan approval?
Loans for unemployed people may be easier to get for them, but many factors determine their chances of loan acceptance. We also consider a few things so that you can have affordable loans. These are:-
Income Source: While offering payday loans for unemployed people living on benefits, we will consider your loan application. We accept those benefits as a way of making repayments later.
Credit Score: Of course, we will also review your credit scores. However, we will do only soft credit checks without impacting your credit record. Sometimes, we do not check credit scores if the applicant’s recent financial handlings are good.
Debt-to-Income Ratio: It would be better to clear all your pending debts before applying for these loans. Since you have no job and your credit score is not good, we may want to ask you to share bank statements determining your loan repayment capacity.