Getting a Loan When You’re Unemployed

If you suddenly lose your job for any reason, you might find that your cashflow becomes somewhat stunted – leaving you searching for a way to get your finances in check. If you don’t have any close friends or family members that you can simply borrow money from to pay the bills, then you might need to think about taking out a loan if you want to make ends meet.

Unfortunately, you’ll probably discover that most lenders feel uncomfortable about lending money to a person who doesn’t have a stable income. However, that doesn’t mean that there aren’t options out there for you to consider. At the end of the day, loans and lending opportunities exist for all kinds of people, regardless of their circumstances.

Finding an Unemployment Loan

Most of the time you won’t be able to get a loan to help you pay your household bills when you’re unemployed simply by visiting one of your local banks or traditional lenders. The majority of mainstream companies will really only consider giving money to someone who has a reliable source of income, as they consider anyone else to be too much of a risk. After all, your lender wants to make sure that at the end of your loan term you can repay the money that you’ve borrowed, with some extra interest.
However, there are a number of specialist providers on the market today that offer loans to unemployed individuals. That means that although you might not have a position at your job anymore, you can find people who will help you if you’re willing to look outside of the typical high street banks.

Of course, there’s always the chance that it’s more than just your current state of unemployment that could be stopping you from getting the cash advance that you need. For instance, many people these days suffer from particularly poor credit histories – simply because they can’t afford to make repayments on time. However, even if your credit rating is somewhat low – that doesn’t necessary mean that you can’t access any kind of credit. It just means that when you do find someone who is willing to lend to you, you might also discover that these people give you a higher interest rate, and fewer options.

At the end of the day, searching for a loan when you’re unemployed and have a bad credit history is no easy feat – but that doesn’t mean it’s impossible. You can always improve your circumstances over time by ensuring that you take steps to balance out your bad credit history.

Managing a Bad Credit History

One particularly useful option for individuals who are unemployed and looking for loans is to take steps to improve your credit score. There are plenty of easy ways to do this, from joining the electoral role to making small purchases on your credit card and paying them off. You should also make sure that your applications for credit are spaced out.

The last thing you want to do if you already have bad credit is to keep repeatedly applying for the same line of credit and being rejected. Think of it this way, every time you apply for a loan you’re leaving a thumb print on your file, and this means that when your next lender takes a look at your history, they can see those glaring rejections staring back at them. The chances are that if a lot of other lenders have refused to give you a loan, the next person you go to won’t feel comfortable giving you one either.

To help improve your credit history over time, do remember that when you get your loan, you should be taking steps to make sure that you keep up your repayments and repair the damage to your name. The more you make payments on time, the better your credit score will be.
What kinds of loan can You Get?

It’s important to remember that when you’re unemployed and applying for a loan, you won’t be able to access the best loans out there with the most appealing rates and terms. Instead, you’ll need to think outside of the box. Good rates and interest are reserved for people with great credit histories who are in constant employment. However, you can still find plenty of specialist that will give people with bad credit a chance to get cash. You can compare the rates for these loans on various comparison websites to make sure that you’re getting the best deal.

It’s the nature of these loans that the greater risk your lender perceives you to be, the more interest you’ll have to pay. Unfortunately, the people who need cash the most are often those that need to struggle most when it comes to achieving help from a lender. However, while you might face large amounts of interest, at least having a loan should give you the chance to demonstrate your trustworthy nature as a borrower.