August 13, 2021
- Olivia Elmore
- April 22, 2019
Stress mounts up, bills line up, finances come on the verge of collapse, and you begin to fluster when you lose your job due to unexpected reasons. Being in-between jobs amplify the burden and the situation becomes dreadful when you are running out of savings. Whereas traditional lenders slam the doors in your faces, direct lenders consider your application even if you have lost your full-time job.
“Being unemployment does not mean you are bankrupt or you have no single source of income. Individuals are considered unemployed if they do not have a full-time job. You are eligible for the unemployed loans provided you have another source of income such as a part-time job, freelancing or rental income.”
All of you know what unemployed loans are and how to apply for them, but several loan options are out there that you can consider while being unemployed, for instance, no credit check loans with no guarantors. You can apply for the following loans when you are unemployed:
No credit check loans with no guarantors
When you apply for unemployed loans, your lender will look at your credit report to determine your repayment capacity. If your credit rating is stellar, you will get the loan at lower interest rates. Otherwise, you will end up getting the unattractive deal. Further, it will leave footprints on your credit score. Since you take out these loans to meet your financial emergency, you cannot take the risk of being rejected.
No credit check loans with no guarantors can help you have your application processed very quickly. As the name suggests, these loans do not require a credit check. Your lender will run neither hard inquiries nor soft inquiries. They will scrutinise your income statement to know about your repayment capacity. You will get funds as immediately as possible if you prove your reimbursement capacity.
These loans are beneficial only when you have a bad credit score. If your payment history has been appreciable, you should apply for the unemployed loan. Your good credit history will help you get the loan deal at affordable interest rates.
Guaranteed loans for unemployed
Getting an unemployed loan is not as easy as it seems. Even though you have a good credit history, lenders may turn down your application because they are convinced with your repayment capacity. The approval chances go worse if your credit score is disappointing. In this scenario, you can apply for guaranteed loans for unemployed. You will have to arrange a guarantor with a good credit history who will be responsible to clear the debt if you fail to make repayments.
Since the guarantor mitigates the risk of the lender, you may get the loan at a lower interest rate. Remember that if you miss repayments, it will not only pull your credit score but also the rating of your guarantor. Before you apply for such loans, make sure that you will pay off the debt on time.
Unemployed loans without a guarantor
A lender may approve your loan application without mandating to arrange a guarantor if you are able to pay back the debt. Chances are you will get the deal at high-interest rates. Maybe you will not be able to pay off the debt on time. If you prefer to take out a guaranteed unemployed loan, you may fail to arrange a guarantor with a good credit history. When all other options get closed, you have a chance of taking out unemployed loans without a guarantor.
These are not as same as unemployed loans. You may have to put collateral against the loan. A lender will accept the loan if your collateral is worth more than the amount of your debt. Note that you may lose your security if you fail to repay your debt on time.
What to do before getting the loan
The first step is to know the total monthly outgoings. Make a list of expenses and add up them to know the total cost. It is important that you take out a loan only when you have left over after paying your regular expenses. Figure out where you can cut down on to maintain the balance.
You can get a loan for unemployed as long as you have the capacity to repay the debt. Consider your options carefully while taking out the loan.