Unemployment brings a lot of financial and mental stress in one’s life. In the absence of income all the plans of life take a backstage and hurt pace of your life. Whether you had plans for a foreign trip or were planning to enroll for a management course or Health Club or to buy diamonds for your beloved, all the additional expenses need to be delayed. Till you find a new job, you could indeed be dependent on short term loans for unemployed for your day to day expenses.
Not to mention, the situation wherein you also have credit card bills or car loan instalments to pay every month. How far it would be advisable to raise loans to meet the everyday expenses and financial obligations? Is it better to exhaust all the savings? What if, it takes more time to get a new job? Should you continue paying for car loan or sell it?
There would be a lot of questions popping up every now and then ever since you have lost the job. You need to find answer to each of the problem. Being an unemployed your credit score has already touched the bottom and not many lenders would be interested in extending credit to you at a decent rate. Besides, you cannot make too many loan queries as it will further affect your credit report.
Being an unemployed, you need short term loans no credit check which is not possible to raise in the UK. According to FCA it is mandatory to conduct a credit check before lending amount. In fact credit check also helps you know if you could afford the loan.
When your credit worth is low and the need for loan is high, you need to act smart to raise the funds. Make note of following points before you go out to raise for unemployed in the UK.
1. Apply for unemployed benefits as it would cover at least some part of your basic expenses. With unemployed benefits you are eligible for unemployed loans at better interest rate.
- Being a special loan, you would require professional help to find the desired loans at better rates. Whether you need short term loans for bad credit situation or refinance your current loans, a broker can help you find the exact match loan.
- Brokers are mediators and they do not charge anything from the borrowers. If you want loan wherein you could repay later on, a broker can even help you find that. In many of the short term unemployed loans you can repay later on, say, after 1 month, 3 months or 6 months or after you get back the job. This comes as a big respite as without a job, planning for loan instalment is a Hereculean’s task. Many a times, brokers also guide you on how to ask your current lenders to delay the repayment.
4. Always borrow according to your repayment ability. You need not build bad history at any cost. For, unemployment is just a temporary phase and would change sooner or later.
But red flags of loan default would stay in your credit report for years to come and affect your future credit decision too.