Unemployment can cause havoc in one’s life. For, no one ever plans for joblessness while planning for career advances. However once bitten, twice shy! Anyone who has coped with unemployment in the UK would vouch for short term loans for unemployed people.
Whether you have just started your work, or are in the middle of your career, you need to take careful steps after the job loss. There are high chances that unemployment may affect your financial situation and spoil your credit history. So, you need to ensure that temporary events do not make lasting effects in your life.
Short-term unemployed loans can be readily raised as instalment loans in the UK. After receiving the pink slip, you should, first of all, apply for the government aid or unemployed benefits and ease your cash crunch. Although the benefits’ cheque would be insufficient to meet even the basics expenses, you would get some relief. Besides, a benefits cheque would make it easier to get approved for a loan.
Why lenders offer unemployed loans?
The unemployed loans are granted on the same faith as short-term loans for students. The lenders extend students loans on a faith that you will get a job in the future. Similarly, while approving you for unemployment loans they assess your employability chances and believe that you will get a new job soon.
Benefits of unemployed loans
You get financial help without exhausting your savings. With a job loss, you are dependent on your savings for each of your expenses. A small loan herein acts as a big booster in life. You need not exhaust the savings and make your future investments difficult. With the unemployed loan, you get adequate funds for the basic expenses.
Delayed repayment takes off the mental stress of paying instalments.
Unlike short-term personal loans, unemployed loans allow you to repay later on when you get the job. This delayed repayment clause makes unemployment loan an inseparable credit help for the jobless people.
Unemployment hurts your self-esteem along. With the availability of loans and benefits, you can at least lead a graceful life without a mental stress of managing the required funds. Till the time you get a new job, you can get relief from loan instalment.
No fear of bad credit history
Rather than looking for no credit check short term loans when you apply for unemployed loans with the help of a broker you need not worry about the impact of loan query on your credit report. This is because of the way brokers make the query. A registered loan broker in the UK works with registered lenders and ensures that only soft credit queries are raised when they search for a loan. They raise multiple queries and ensure that no footprint is being made on your credit profile.
Repay loan and build the credit history
The unemployed loans allow you to repay as per your convenience. There are no charges for prepayment. You can repay as you get a new job or get another source of income. With the timely repayment of a loan, it would certainly build another good history in your records and improve your credit worthiness.