The ability to borrow money from banks is something that many people take for granted. However, for many of us it is not so simple. Trying to get a loan when you don’t have a job is tough. Trying to get a loan when you don’t have a job and you also have bad credit can is extremely tough.
But the good news is that it is possible. And we at finance43.com are here to explain everything to you.
When you’re unemployed you will often feel like there are no options. You have gone to the traditional lending institutions and they have quickly rejected your applications because of your lack of a job.
The first thing we are here to tell you is that there are options. There are many lenders which have websites that you can fill in applications for free. Just remember, they will not reject your application automatically just because you have no employer, but you will have to add in some additional details on your application to help your cause.
Not having a formal employer does not mean that you have no forms of income. If you are receiving any financial support from your family, then this can be mentioned in your application. The same thing goes with any assets you own that are generating any income streams, or any benefits or other forms of compensation you may be receiving. The key point here is that no matter how insignificant you may find them, they will still help your loan application.
Hopefully, once you’ve applied for a number of these online no-income loans, you will have several different loans approved. Make sure to spend time at this point evaluating the differences between the loans. According to kreditus.eu – there will be stark contrasts between different lenders in the terms and conditions they offer and you want to make sure you don’t just pick the most attractive interest rate and miss the fact that they are taking advantage of you somewhere else.
As we mentioned at the top, many people who are struggling to get a loan due to the lack of a job, also have a lower credit score. This can make obtaining a loan even more difficult. If this is you, and you still can’t find a lending institution that is willing to issue you a loan then don’t panic. There are still some final options for you. We don’t recommend these as your first port of call as these loans are not intended to be permanent solutions. But if you need cash fast then they are available to you as a last resort.
The first of these are payday loans. Payday loans get a bad reputation, and for pretty good reason. They do charge exorbitantly high interest rates. But in return for this high interest rate they will issue loans to everyone. If you choose to go with one of these companies, make sure you don’t make late payments or accrue too much debt as you will be punished by the high rates.
The other options are to use your physical assets as security on the loan. If you have a car or a house that are in your name and fully paid off, then you can use these as collateral. The advantage of this option is that the banks will be much more likely to issue you a loan; the obvious disadvantage is that there are serious consequences if you default on the loan.
We know that the situation can seem desperate when you are unemployed and urgently need a loan. The traditional banking system is not set up to deal with people who are unfortunate enough to find themselves in this situation, most times through no fault of their own.
Hopefully, by reading this article you will have gained some confidence that there are a host of options available to you. Remember not to panic, and to systematically go through the options one by one without hastily jumping on the first loan that is offered to you.