Incessant search for new job begins as you receive a pink slip. However till the time unemployment stays in your life, you feel helpless and suffer due to cash crunch. To add to your problems, not many lenders would be interested in lending you loan for unemployed. Most of the lenders would want to deal with borrowers with good credit score.
Being an unemployed you should thus know about certain factors that can help you avail the right unemployed loans. In the absence of income, loan is more than a necessity to keep financial crisis at bay. Availing additional loans during joblessness can help you ease cash flow and meet the basic expenses.
Apply for unemployed benefits
The government of UK grants financial aid and benefits to unemployed people. You should apply for unemployed loans before applying for the loan. Having an unemployed benefits’ cheque makes you eligible for loans at better rates.
Ensure you deal with right lender
Being special loans, the unemployed loans would come at higher rate from a selected few lenders. There are several brokers in the UK that can guide unemployed folks to find the best loans for unemployed people on benefits. A lot of loan sharks are also active in the UK to deceive people under dire need for funds. You need to ensure that you deal with the registered lenders only. A loan broker can be your best financial guide in this regard. He can conduct a thorough research for you and find a lender that offers the best match loan for you. You can read online reviews before contacting a broker for the purpose.
Negotiate and advance loan as per affordability
With unemployment extreme shortage of funds follows and you ought to save as much as possible. So before you share your loan requirements to the broker, you should make a short blueprint on how much you need and for how long. While making the financial plans you should also ensure that you do not exhaust all of your savings. The decision to borrow should follow after the definite calculation for monthly surplus for repayments is worked upon. Based on your repayment capability you should set across your borrowing requirements. The broker would help you find the lender who offers the closest rate of interest. By borrowing up to your repayment abilities ensure that you do not incur further damage to your credit score.
Deciding upon the term of the loan
It is common to build bad credit history following a job loss. For, it is not easy to arrange for the requisite amount for loan repayments in the absence of income. If you already have multiple loans and credit cards you should look for long term loans for bad credit accounts. A long term unemployed loan can be drawn as a personal loan or a consolidated loan to finance all other payables of the month.
Herein you need to look for available benefits for people with bad score. Whether you want a no guarantor unemployed loan or have a home equity to support the consolidation you should use the advice of the broker before making the decision.