Choosing Payday Loans For Unemployed Direct Lenders
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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
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Individuals who are unemployed find applying for a loan a hard task. Since they do not have a regular source of income, lenders find them risky to their business. However, the notion has changed a few years ago as loan products for unemployed are introduced. Like employed people, the jobless will have a fair access to different financial alternatives – thanks to payday loans for unemployed. These lenders are ready to provide a helping hand whenever someone is experiencing a sudden financial hurdle and they cannot seek help from their loved ones, banks, and traditional lending stores. Because of this, the loan has become immensely popular, with some treating as their first resolution during hard times.
Payday Loans For Unemployed
Traditionally, payday loans are designed for employed individuals as it needs to be settled on their next payday. However, direct lenders have become more considerate that they have started accepting even those who are unemployed. The loan is beneficial as it gives a fast, safe, and simple relief when you need to fund a car repair, education, utility bills, and other urgent expenses. No lengthy and unmanageable paperwork is required as the loan is free from paperwork. Rather than going through the long and exhausting traditional process, the borrower only needs to accomplish an online application form. Once the data provided has been verified, the loans for unemployed direct lender will release the money in as fast as 24 hours.
Most borrowers find the loan convenient because it is unsecured by nature, thus, it doesn’t need any collateral to protect the loan. The amount given is relatively small but it is beneficial when you need immediate financial solutions and you have nowhere to go. No time is wasted and it can even save money. In addition, the money is sent directly to the loan seeker’s bank account, therefore, a personal visit to the loan store is not necessary. Applicants who are anxious about their credit history will find this loan suitable since there is no credit check. Furthermore, they can enjoy the same terms and conditions that borrowers with good credit scores have. Successful applicants will not only enjoy the fast and easy money in their hand; they also have the chance to improve their credit score by repaying their loan on time.
What Criteria Do The Direct Lenders Have
Payday loans are versatile and it requires only a few criteria from the borrower. As usual, they have to obtain an age limit of 18 years old and over; they must possess a proof of UK residency; they must have a working bank account, and they must satisfy the lender with their plan of repaying. No matter how flexible or considerate the lender is, they still need to guarantee that they can have their money back, together with the interest rate and charges (if applicable).
As for the loan’s purpose, there are no restrictions, therefore, the borrower can use the money on almost anything, such as buying a new gadget, consolidation loans, paying for a medical bill, or as a pocket money when looking for a new job.
Finding Payday Loans for the Unemployed from Direct Lenders
In this day and age, finding payday loans for the unemployed from direct lenders should not be any problem at all, with the recent rise in the number of innovative loan services that have now been made readily available even to the borrowers with undesirable credit. The situation, however, was far different in the previous years. Because of the rising demands for loan services, paired with the inevitable consequence of increase in the volume of loan borrowers with unsettled balance, lending institutions have decided to address such problems by coming up with a system for a credit scoring that’s designed to help prevent their recurrence in the long term. Under this system, borrowers of the lending institutions as unlikely capable of paying their debts were seamlessly separated from those they saw were more likely capable of settling their debts with no trouble at all. Through the credit grading system, borrowers whose income levels fall short of what the loan companies have advised as the smallest allowable minimum were instantly assigned what is commonly called poor credit history, while those borrowers who frequently failed to make their regular payments, consequently had histories that showed their poor payment histories.
Consequently, borrowers with bad payment record and bad credit scores were instantly excluded from getting a loan from traditional lending firms. Due to this, borrowers who found themselves in urgent financial crises were left to choose with downright impossible alternatives in order to address their financial circumstances. Because selling off properties or taking a loan from any friends or family may not be easy, several borrower with undesirable credit tend to settle with the underground loans being offered by illegally lending individuals and companies. And while these types of loan options do provide borrowers with the short term financial ease that they crucially need, these loan services come with inherently high interest rates that often leave borrowers in even the worst financial states. As a consequence, borrowers are often left to deal with a cycle of never-ending difficult financial problems.
Getting Loans for the Unemployed from Direct Lenders
A brand new market comprises completely of borrowers who have a bad credit was inevitably created. As borrowers clamour for safer, more affordable, and even more flexible loan services in this newly created market, innovative loan services were later on developed for borrowers with undesirable credit. Through innovative loan services like loans for the unemployed from direct lenders, borrowers now finally have easy access to better, more secure, and far more affordable loan services to address financial circumstances. With loans for the unemployed from direct lenders, as well as other similar innovative loan solutions, borrowers now finally have more reliable options to rely on in chances emergency financial situations. Unlike procedures for a lot of conventional loan applications, the procedures involved in the applications for innovative loan solutions do not involve waiting for hours in lines just so borrowers could submit their applications, nor do they necessitate having to submit impossibly hard to find requirements.
With loans for the unemployed from direct lenders, as well as other innovative loan services, borrowers can now comfortably submit loan applications without even needing to leave their homes. Since loan applications may now be completed entirely online, borrowers can now choose to complete their applications regardless of where they are, at any given time. And because anything can now get accomplished entirely on the internet, borrowers can now expect for their loan applications to be processed within just minutes right after these applications were submitted. As a consequence, approvals of the applications for loans for the unemployed from direct lenders, as well as other similar innovative new financial services, can now be completed in as fast as just minutes after the loan applications were submitted. The released of the funds for the successfully approved loans for the unemployed from direct lenders, and in the meantime, can now be expected in as short as just hours after the loan applications have been completely processed.
Since loans for the unemployed from direct lenders are typically small-money loans that are normally arranged in such a way that borrowers can repay the debt over short-period terms, these loan solutions cannot be considered practicable options in addressing much more tedious financial situations. In addressing more complex financial conditions that needs loans in much greater amounts and a longer terms for payments, borrower may instead rely on the options for a secured loan which allow for bigger loans that can be repaid in far longer repayment terms.
No job and in need of a loan? Below are your options
As an unemployed individual, you're mostly in dire need of a loan, more than the employed people. Unfortunately, most lenders will consider you a high-risk borrower with a high possibility of defaulting. This is why it can be difficult to secure a loan in the UK when you're unemployed. It becomes more difficult when you want to secure a big amount of money which would probably save you from a vicious cycle of money constraints.
However, there are options for unemployed borrowers who want to secure loans. After all, being unemployed doesn't always mean you cannot manage to repay a loan. Whether you want to start a business, boost an existing venture, buy a home or simply develop your property, there are ways to secure a loan without presenting a payslip.
What are the chances of securing a loan if I'm unemployed?
A steady monthly salary is often associated with a borrower's ability to repay a loan 'comfortably’. Bankers and other financiers may, therefore, be sceptical about lending unemployed individuals. Even when you secure a loan while unemployed, you might incur higher interest rates as the financier is taking cautionary measures to ensure they recover their money especially when you're unable to repay the debt fully. Your chances of getting a loan are not as high as of that employed borrower, but nonetheless, there is hope.
Types of loans for unemployed people
Financiers will be at ease to lend you larger sums of money when they know someone else can help you repay the loan. A guarantor is someone who vouches for you and 'promises’ to repay the loan in case you default. This person signs your loan application documents as a sign of commitment.
If you're unemployed, you can secure a loan by presenting a guarantor to vouch for you. It's however important to note that not all people willing to vouch for you qualify as guarantors. For someone to qualify, they need to;
- Own a home
- Be mentally stable
- Be financially stable
- Be 18 years and above
- Should not be declared bankrupt
- Should not be an Individual on Voluntary Arrangement
While a guarantor loan may be safe and accessible, the high-interest rates may not be ideal. Due to the risk involved- on the financier's part, the Annual Payment Rate may be as high as 200%. In addition, failure to repay the loan may result in your guarantor losing property as the financier tries to recover the loan.
A secured loan means you're offering the lender security in the form of a personal asset, in exchange for a loan. The asset could be a car, a house or a piece of land. The asset's value should match that of your desired loan amount and valuation may be done to determine its current market value. In case if you're unable to repay the loan, the lender will simply sell the asset to recover their money. For instance, if you're unemployed and you take a secured loan using your house, the lender will auction your home to any bidder who can offer the amount you owe.
This type of loan is quite popular among unemployed borrowers but it's also quite risky. You may lose your property if you're unable to repay the loan. Therefore, only secure a loan using assets you don't mind losing or simply avoid taking a secured loan if you're unsure of your ability to repay.
Personal Loans with High-Interest Rates
There are various types of personal loans such as payday loans, unsecured loans, fixed-interest loans and variable interest loans among others. When you’re unemployed, some lenders will approve your personal loan application but they will charge you a higher interest rate to cater for the risk involved.
These loans are a great option if you expect to receive some money within a short period of time or you can comfortably repay them. However, if you’re unsure of your financial status, steer clear of such as the interest rates can be too high. In addition, penalties tend to accrue so fast when you default, such that repaying becomes a difficult task.
How to keep your credit score in check when you’re unemployed
Whether you’re employed or unemployed, your credit score may be one of the most important detail lenders assess before approving your loans. Even employed people with secure sources of income may fail to qualify for loans if their credit scores are terrible. Therefore, take the following measures to keep a clean record and improve your credit score;
- Always pay your loans on time. Timely payments establish great relationships with lenders. Think of your lender as a friend who loaned you some cash, How would they feel if you don’t repay as agreed?
- Do not borrow too many times within a short period of time. A chronic borrower is perceived as a high-risk individual who is unable to manage their finances.
- Don’t borrow from too many lenders. Instead, work on establishing good relations with one or a few.
- Register your details with the electoral register. This may be unrelated but it does matter to lenders.
How to apply for a loan if you have no job
Fortunately, there are so many tools to help you determine the kind of loans you qualify for, your credit score, and different rates in the market as well as digital application forms. If you want to apply for a loan, you may use third-party websites and apps to establish your position as a borrower and your chances of qualifying for a loan. If you’re eligible, simply visit a lender’s website or download their app and fill in the loan application forms provide. You may also visit the lender’s offices physically to submit your forms especially if you’re applying for a secured loan.
- Small and large payday loans for unemployed individuals can be obtained from UK direct lenders.
- Individuals aged 18 years and over may apply online ans receive money the same day.
- No upfront payments are required when applying for payday loans.
Payday Loans for Unemployed People FAQs
When applying for payday loans will I only be dealing with direct lenders?
Yes. Moneyfall.co.uk does not provide any loans and all of the lenders we work with are direct lenders. This ensures that you know exactly whom you will be dealing with during each step of the loan application process.
Are unemployed people allowed to apply for payday loans?
There are many lenders that will be willing to provide loans to unemployed people. However, there will still be criteria that will need to be met before an application will be approved.
Can I borrow enough money to pay my outstanding bills?
The amount of money that you will be allowed to borrow will depend on your existing financial circumstances. For instance, if you have minimal income and a lot of expenses, you may not be allowed to borrow a lot of money. The lender(s) that contact you to offer you a loan will discuss the amount of money that you will qualify to borrow with you.
How safe will my personal information be after filling in the application form?
All of the required security measures have been put in place to ensure that your personal information remains safe and secure when submitted through our website.
Why do I have to provide so much personal information on the application form?
Personal information such as your physical address, mobile number, place of employment (if applicable), sources of income and regular expenses are required to help prevent fraud from taking place and to determine how much money you will be able to repay without skipping payments on anything else in your budget.
Will I be harassed by telemarketers are using your website?
Not at all. We will never rent, sell or share any of your personal information with unauthorised parties and you do have a choice to opt out of receiving all forms of marketing when filling in the website application form.