Are there loans for unemployed with bad credit no guarantor? People with poor credit are not stuck with just the one loan option; there are other choices of loans. In fact, there are different choices of loans depending on how much money you need to put your hands on and when you can repay it.
Guarantor loans are an option for taking out a loan if you have a bad credit history and are unemployed. While loan approval is generally high with a guarantor, this type of loan also has some downsides.
- The interest rates can be high;
- You need someone willing to be a guarantor;
- Lenders don’t always make the necessary affordability checks;
- The guarantor might not fully understand what is expected of them.
So, guarantor loans aside, what other choices of loans might you give consideration to.
- Loans offering £100 to £500 – consider a payday loan;
- Loans offering £500 to £1,000 – consider a short term loan;
- Loans offering £1,000 to £5,000 – consider a personal loan.
Are You On Regular Benefits?
While in the past not that many lenders were willing to loan money to people who were on benefits, times have changed. With jobs not being as secure as they once were, lenders are now more lenient in regards to offering loans to people on benefits.
As long as you have regular benefits paid into your account, it may be classed as an income by lenders. On saying this, there are some benefits, such as housing benefit, that is not considered an income.
According to statistics, there are 1066.20 thousand people unemployed in the UK as of March of 2019. Around 1.10 percent of people are long termed unemployed and it is people such as these that can benefit from lenders offering loans for the unemployed.
The Amount of Benefits Will Determine How Much You Can Borrow
The amount of benefit you are paid (income) each month and what you pay out (your outgoings) is going to determine how much you might be able to borrow.
Before applying for loans for unemployed with bad credit no guarantor needed bear in mind that:
- Lenders will always make an affordability check, regardless of whether you are on benefits or you are in work;
- Loans for smaller sums of money are more likely to be approved than loans for many thousands of pounds;
- Your credit rating is going to affect the amount you can borrow to some extent;
- You need to be over 18;
- Live in the UK;
- Have a bank account and debit card.
How Long Can I Take Loans for Unemployed with Bad Credit No Guarantor Over?
The length of the loan is again going to depend on your circumstances and the amount of money you wish to borrow.
Payday loans can be paid back on your next payday, or you can spread them out for up to three paydays. This type of loan is usually easy to get approval for, even with a poor credit rating.
Short-term loans are usually paid back within one year. Which does give some leeway when borrowing up to £1,000.
Personal loans may be spread out for a longer period. With our help, you can keep a loan within a manageable timeframe if you are on benefits as lenders offer up to 36 months to repay a loan up to £5,000. This means that you have more time to repay the loan but you are not committing to a long-term loan repayable over several years.
You can find suitable loans for unemployed with bad credit no guarantor with a panel of lenders who consider all circumstances and affordability along with offering some of the most competitive rates. All lenders offer affordable loans and numerous loan options, which means you are more likely to find approval even with bad credit and if you are on benefits.