27 Apr Can I get a loan if I’m unemployed? And how do I do it?
Being unemployed or out of work can be tough on your budget so it’s important to manage well to ensure that you cover all your regular expenses. However, unexpected expenses can crop up no matter how carefully you plan and this may mean that you require some extra cash.
So it’s obvious that you’ll run to financial institutions to apply for a cash loan. Unfortunately, it’s a bit harder to secure a cash loan if you’re employed, but it is still possible.
Lenders are most likely to offer you small loans if you can provide proof of income. However, even if you don’t have a job, there are options available for you.
As you will find with most UK loans, the best rates and terms are often reserved for customers who are already in employment or those who have a good credit history. This is the main reason why many UK banks usually deny unemployed people, simply because they do not have a steady flow of income and are likely to skip payments.
So, what do you do? well, there is good news for you; that you can access little excess cash in the form of payday, doorstep, guarantor, personal, student, unsecured, and bad credit loans. There also exist unemployed loans for the retired lot who probably have no source of income.
You can read more about eligibility and how to qualify for these small loans at BadCreditSite.co.uk.
But before proceeding to apply for these loans, it is worthwhile noting that they are usually expensive hence not necessarily suitable for you.
Getting a UK loan if you not employed
If you resolve to apply for a loan from a payday, doorstep or online short term lenders in the UK, you may be required to undergo affordability assessment. This is aimed at determining whether or not you able to repay the amount you are applying for.
Many UK loan lenders carry out a simple basic procedure to arrive a conclusion on whether you are eligible for their loans. As part of the procedure, you may be asked to provide proof of income and this includes but not limited to:
-Salary payments from an employer
-Pensions and any other benefit
-Regular payments from your partner or relatives
-Any other source of income
With that said, it is also good to be aware that all lenders are not the same so you will need to check requirements from individual loaners.
The reason why you could be denied a cash loan
There are reasons why your loan may be refused even if you can show that you are eligible for a cash loan. They include:
-Poor credit history
-Multiple credit applications
-If you have previously missed credit payments, or if you have been declared bankrupt by a court of law
It is always important to try and keep it two applications throughout the year because many loan applications to different institutions may be a concern for most lenders.
Improving your chances of being accepted for a cash loan in the UK
Register to vote
Put your name on the electoral roll. This enables lenders to ascertain that you are indeed who you claim to be.
Build up your credit score
A bad credit score will definitely deny you a loan. Majority of loan lenders in the UK and across the globe feel certain and comfortable offering cash loans to people who have a good credit history. A bad credit score will only make matters worse for you.
So, how do you build a good credit score? Just ensure that you don’t skip payments and always pay on time. Only then will employers believe that you are able to manage your finances well and this will help you access credit in future.