According to the Office for National Statistics, 3.8% of UK residents were classified as unemployed as of September 2019. As one of such individuals, you might have recently finished college or have just been fired. Being a jobseeker places you at a precarious financial situation. It is even worse if you have bad credit or zero credit history. Does that mean you cannot get a loan? Not at all.
Guaranteed Loans for Unemployed UK Residents
For the longest time, the possibility of an unemployed person to access a loan was slim to none. However, through modern lenders, you can now access a loan even if you do not have a job. In contrast, this would not be possible with traditional lenders like institutional banks as they rely on your employment details to gauge your creditworthiness. You might also be struggling to clear your credit cards leading to a poor credit rating. This is when guaranteed loans come in handy.
Typically, these loans have high acceptance rates because their lending criteria is more relaxed as compared to other traditional loans. However, you will still need to meet eligibility and affordability requirements. These loans come with numerous advantages to unemployed people such as:
It might take you less than five minutes to enquire about the loan online and fill in the application form. You will have to fill in several key details such as your residential address. After that, you specify the amount you need and the time you will take to repay. The whole process is carried out online including evaluation. In effect, the application review process is quicker and in most cases, the approval is almost instant. In any case, you get a response on your application in a fairly quick time.
Quick Access to Funds
With the end to end online application process, most applications are processed quickly and you never have to wait for several days to know the decision. You will most likely get approved as these loans have high acceptance rates. In case the lender needs additional information or more time to review your application, they will also inform you. After you have been approved, you typically get the money you need within the same business day to address your financial emergency.
No Guarantor Required
You can easily keep your financial situation to yourself using this type of loan. This is because most guaranteed loans for unemployed UK residents never require a co-signer. You also do not need to provide collateral.
Zero Credit Checks
Most direct lenders will only conduct a soft credit check which is never reflected on your credit score. Here is a great article on how credit checks affect your credit score. As such, you avoid further damaging your credit rating as you struggle to get out of your debt situation.
These loans normally have lower and manageable interest rates as compared to numerous other forms of unsecured loans.
You can manage the repayment process easily depending on how quickly you get the money to repay the loan. At times, you can even take several loans of this kind and pay quickly each time to raise your credit score. A higher credit score will give you better chances of accessing bigger loans and mortgage.
You can pay for your guaranteed loan using other sources of income too. Some of the income types that most direct lenders consider include:
- Government benefits
- Earnings from your idle property
- Earnings from self-employment
To apply for these loans, you need:
- To be 18 years or above in age
- A permanent UK resident
- A valid bank account
Always confirm the terms directly from individual lenders before you apply.
If you are in between jobs and your savings can barely sustain you, getting a loan might be a smart decision. However, you might be hesitant because you are worried about your creditworthiness and poor credit rating which might make loans inaccessible. You can now get guaranteed loans for unemployed UK residents from any of the numerous direct lenders available in the market today.
How to Access Guaranteed Loans for Unemployed
All that is left is to choose a lender who offers suitable conditions and favourable repayment terms. However, it might be difficult to find the most suitable lender immediately which is why you need to compare several lenders. At Bonsai Finance, we help you compare the leading lenders and choose the one that best suits your financial situation. Contact us today in case you have any questions or would like more tips on how to achieve financial freedom.