9 essential tips to use before applying for unemployed loans
It is not easy to overcome days of despair amid unemployment following a job loss. Whatever funds you could raise via government benefits or grants, are going to stay insufficient. Expenses such as loan instalments, credit card bills and household expenses are constant and there is no escape from them.
In such dire times, you may consider loans for unemployed. However the move to borrow without an income is not easy. For it may turn into a starting point for a debt trap. Who would lend to an unemployed? How would you repay the loan? What if you fail to pay back? There are so many questions which might arise in your mind.
Being an unemployed there is little you can do to impress the lender. All you can do is work on your credit report, add secondary income avenues and try to maintain your worth. This probably could be easier said than done, but this would be your only fool proof formula to cross the financial muddle during the joblessness.
Here are certain tips to follow before you apply for unemployed loans.
1: Apply for government benefits as you lose the job. As an unemployed employable folk in the UK, you are eligible for government benefits. This would help you meet some of the primary expenses. Besides, the cheque can be used to show as certain income during along the loan application.
2: If you are not enrolled for electoral role, send your details and get enrolled. It will raise your credibility.
3: In the absence of job, you have very few things to make your application attractive. The chances for loan rejection are also high. It is Important that you ensure apply to only those lenders who promise soft credit check. This would not leave any foot prints on your credit report, whatsoever.
4: You should seek an appointment with a loan broker to get financial assistance for your credit situation. He would not only share the available credit options but would also guide you on the right ways to pay back debts successfully.
The best place to hunt for brokering firm is online. You can conduct a search online and list a few brokers based on their reviews.
5: In case you already have a few debts on your account, you should try to reach out to a lender and request for delayed payments till the time you get back the job. A broker could help you assist you in this regard. This would provide you much needed relief financially.
6: It would not be a pick and choose loan buying so you need to rest your search at the most attractive terms and rates. When looking for unemployed loans choose loans with no upfront fees and easy repayment option. The repayment of unemployed loans begins after a defined period. You get substantial time to search for job.
7. When you are out of job you can use a good score of your father, brother, spouse or friend in your favour. With unemployment benefits, you can easily avail guarantor loans at low interest rate.
8: Before applying for an unemployed loan you should ascertain the amount of debt you want to raise. The loan should only be advanced for necessities as these are costly loans. You would be spending much on the interest rate.
9: As Unemployment loan is a type of instalment loans, you should start saving surplus for the repayment from the very first day. It would ensure that you pay back successfully and build credit for your future. Keeping all these points in your mind, lack of income would not hurt your credits and you would be able to find a new job peacefully.