- Emma Anderson
- July 31, 2019
It is very well known fact that employed people get easy loan approval whether it is from mainstream or online lenders. Here, lenders believe that borrowers will easily repay the amount on time. Now, the question arises that, is the loan sufficiently available for unemployed people? The answer is YES.
Nowadays, many FinTech companies believe in providing you short term loans and it doesn’t matter you are employed or unemployed. But it is true that your application may be rejected from mainstream lenders because of the rigid process but, you have high chances to get approval from online lenders in the UK. Let’s understand more about short term loans for unemployed in the UK.
There are many ways to get loans and among them first one is:
#1: Providing The Guarantor
This one is the easiest way if you can show the lender a guarantor; make sure your guarantor knows the consequences if you fail to repay the borrowing money. But the condition is guarantor with bankrupt is not accepted, he/she must have at least a good credit score. Amount limit may go up to £10000, but borrow only that much of the amount you can repay easily otherwise, your guarantor may have to face some serious financial trouble.
#2: Rely on Doorstep Funding
As the name suggests the loan approval is done at your home. The lending agency will send their agent and once you agree with the offer and comfortable with the interest rate then the agent will transfer the amount to your current account. The online lender will send the same agent for recovering the loan and make sure you repay the loan in a stipulated time without defaulting.
#3: without Pledging any Collateral
You can apply for this loan if you don’t want to put anything as security. Many FinTech companies provide loans without any collateral with a competitive interest rate. And you can use funds in your education, marriage, travelling, and home improvement. This means you are free to use your money.
In case, you fail to repay then the lender cannot claim to your property. But it will jeopardize your credit score and you may face difficulties in applying for a loan in the future.
#4: Apply Where No Credit Check Prevails
You are contending to get money and unemployment leaves you with bad credit, but you are not down and out. Many lending agencies provide loans for unemployed people, which also include those with poor credit histories. This means you are eligible to get loans without any credit check; interest rate may vary from one company to another. Do proper research and find which interest rate you are comfortable with.
#5: Opt of Easier Options Like Personal Loans
Unemployment can’t resist you to get a loan. You can easily apply for personal loans to meet your needs but before that, lender will check your current financial situation, if he finds that you have enough capability to repay on a given time, then he will approve your application. After approval, you can use them in the way you want to or on whatever you consider important to you.
You can see how ways you can get loans even you are unemployed or with a less-than-stellar credit score. There are many BENEFITS you get in case of unemployment such as:
- Receive fund despite having poor credit score
- You can resolve your recent debt
- Guarantor loan which increases your chances to get approval with a lower interest rate
The only thing you have to take care is that don’t be in a hurry to get a loan, it would be better if you analyse your situation so that repayments will not create any problem to you. If in any case you will not able to repay on time then you should inform the lender and ask for more time. It will not only save you from extra charges, but also your late payment will not affect your credit score.