Unemployment challenges you financially and causes a lot of stress and tension. In wake of your current debts, including loans and credit bills, the loss of job would not let you live a peaceful life until you find the next job. The stress of meeting impending loan deadlines ought to force you towards unplanned loans for unemployed people.
However you should restrict yourself from instant cash advance or impulsive decision to borrow as it may turn out to be a financial suicide. You need to assess your credit condition and take an informed decision.
Loans for unemployed
Main stream lenders are never interested in offering loans for special needs such as unsecured loans for bad credit, unemployed loans and alike. You should thus understand that without a job, there are limited options.
Searching for private lenders is not safe either as many loan sharks are active in the UK. Being an unemployed person you would not only need an informed decision, you also need to deal with the legitimate finance company. The best bet thus is to look for an FCA regulated loan broker.
Why seek help from a loan broker?
Loan brokers are financial experts who can help you search the closest match loans which may be difficult to find by yourself. They are not loan sellers. They are loan introducers and inform the client about what is available in the market. The best part is most of the brokers do not charge any upfront fees to share the available deals in the market. Whether you seek rare loans such as long term loans for unemployed which are not readily available, the broker would initiate a 360 degree research to hunt the available deals.
Being an unemployed person, your credit worth is low and finding a lender by own would not be a cakewalk. Also, finding a new job is your priority. If you spend your time searching for a loan, when would you search for a job?
The loan would certainly help you avoid the late payment charges and safeguard your stakes but a new job would ease the financial burden for life. So you need to keep balance in search of both and the broker would become your true buddy here.
Things to keep in mind when choosing unemployed loans
- Whether you have unemployed benefits or a partial income source, never apply for payday loans for unemployed. For, payday loans have a very strict repayment deadline, missing which you would be required to pay a very hefty price. If you need immediate cash, you may still consider doorstep loans as they offer ease of repayment in weekly or fortnightly instalments. Owing to high cost of cash advance loans, you may consider instalment loans for a couple of months or more.
- You should always look for ease of repayment when you need loans for bad credit situations like unemployment. Have an affordability check and make sure you could afford the repayment of loan.
- A broker can help you avail a loan with delayed repayment structure. You may opt for delayed reimbursement and concentrate thoroughly on searching for a new job.
- Never borrow for more than what you require. Irrespective of what loan interest is being offered a loan should never be raised for more than your current needs. Also, understand that longer duration of loan may result in smaller instalments but the total cost of loan would escalate with the loan term. So opt for loan duration and loan amount according to your financial situation.