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Loans for unemployed
Are you on a break from work due to a personal crisis or because you’re planning to start off on your own?
This is the time when you would have the biggest requirement for a loan, in order to tide over the tough period. But being unemployed can be a real big hindrance when it comes to getting a loan approval. Whether it is getting an approval for a mortgage, a credit card approval or a personal loan, loans for unemployed is difficult to come by.
How to prepare for a Loan Approval if you’re Unemployed?
Banks and financial institutions are extra cautious when it comes to approving loans for the unemployed without a steady income. So, before approaching a bank for a loan approval it is important to prepare in advance and prove to them that you are a reliable candidate for a loan approval. The first step to prove your ability to repay is by showing a positive credit score. To ensure that you’re paying all your existing loans on time, without defaulting. Even a single default or late payment can have a negative effect and bring down your credit score by several points. Additionally, they will also do a background check with the help of a credit agency to understand your potential to repay any loan taken.
Some points that to check before applying for a loan if you’re unemployed:
- Current Credit Score
- Existing Loans and Credit Cards
- Present Utility Bills and other Financial Obligations
- Credit repayment history
What are your Loan Options?
If you’re in urgent need of a loan at the earliest, the best option would be for you to go in for a mortgage or a secured loan. This kind of loan would require you to keep some tangible collateral as a pledge that will be returned once the loan and interest amount is repaid. Any asset of good value can be kept as collateral; this can vary from your car to jewellery, to your house or land. Multiple assets can be kept as collateral depending on the amount of money you require as a loan. The biggest drawback of this kind of loans for unemployed persons is that you may lose your asset for a value much less than its actual price if you’re unable to repay the loan value.
Guarantor Loans for unemployed people on benefits is also possible. If you have a family member or close friend
who is willing to stand as a guarantor to your loan, it’s another way to fasten the process of getting a loan approval. As banks, the risk of giving a loan to an unemployed person is greatly reduced when a guarantor comes into the picture. It becomes easier to convince the bank if the guarantor is employed and has a good credit score.
Credit Cards are another option for anyone who is unemployed. While there are multiple credit card options, the difference for an unemployed person will be that the interest rates would be much higher and also credit limit would be much lower than what’s enjoyed by the salaried lot.
How to apply for a loan if you’re unemployed?
Being unemployed, loans can be tough to get. At Loan in Hands, we try to make it as simple and easy as possible to complete the loan application process. The application can be completed online. You just need to fill in important details like name, contact number, address and the amount you are looking to borrow, and the type of loan you require. We will, in turn, do the relevant background check of the amount you’re eligible for, along with the best interest rate. Is your previous credit record going to affect your ability to take out a loan? Not with us. If your application is successful, the money would be wired to the account number provided at the earliest possible date.
Why Choose Us?
Getting loans for unemployed UK citizens is tough and tedious when you look at conventional financial institutions. At Loan in Hands, we provide customer friendly solutions that are customized as per each individual requirement. Other than simple and easy to understand online processes, there’s no hassle of multiple approvals, documentation and visiting the banks several times to get the loan. Also, since our loans are short-term loans of amounts ranging from £500 to £50000, it’s the best option in town. So, even if you’re unemployed you can look to us for support.