Getting a Payday Loan When You Are Unemployed
If you have lost your job for whatever reason and find yourself in a tight financial situation, a payday loan could help you out temporarily. Many unemployed people throughout the UK have obtained these loans, and they can provide you with the stability you need until you go back to work. The more information you gather on these loans, the easier it will be for you to make the right choice.
Can You Get a Payday Loan if You Are Unemployed?
The fact is that you can in fact get a payday loan if you are currently unemployed. Despite what you might have heard from others, unemployment isn’t necessarily an automatic rejection for one of these loans. While it’s true that private lenders do look at an applicant’s job history and income, there are many other factors involved. You shouldn’t let the fact that you don’t have a job right now keep you from filling out an application for a payday loan.
How is Your Credit?
It can be somewhat challenging to get a loan if you are unemployed, but only because it requires at least a decent credit rating. No lender is going to give you a loan unless they feel comfortable doing so, and a high credit rating will put their mind at ease. You don’t have to have a perfect credit score, but it also cannot be very low. Take a close look at your credit to see what it is like before you apply for a loan online.
Everyone should look at a copy of their credit report at least once a year, regardless of whether or not they plan on getting a loan. The more you know about the state of your credit, the easier it will be to manage your expectations when trying to borrow money. Make sure to look for errors when examining your credit report so that you know there aren’t any mistakes that could be adversely affecting your overall score.
You should keep in mind that there is still a possibility of getting a payday loan even if you are unemployed with bad credit, but the chances are slim.
Keeping Yourself on Track Financially
Payday loans can be especially beneficial to those who are unemployed for a number of reasons. A lot of people get behind when it comes to their utilities, rent or mortgage when they are out of work. If you want to keep this from happening, you should seriously consider applying for a payday loan as soon as possible. While you will be going into debt by taking out a loan, you won’t have to worry about the power to your home getting turned off. These loans can help you survive when you are going through a rough period with your employment.
Finding a Compassionate Lender
Believe it or not, there are actually quite a few compassionate private lenders out there who are willing to lend money to those who are employed. These lenders won’t give out money to just anyone, but some of them are more flexible than others. When you spend enough time researching these options, you will be able to pick the best company to borrow from.
The lender you end up choosing is important, so you don’t want to borrow from the first one you come across. Choosing a good lender will also mean not having to worry about hidden fees and all sorts of shady behaviour.
Most private lenders won’t be willing to let unemployed applicants borrow a ton of money, but there is a good chance that you can get enough to help you with staying current on your bills. The higher your credit score is, the more money the lender will be willing to give you.
Repayment terms for these loans can vary from two weeks to 12 months, depending on the lender and how much you borrow. You will more than likely be expected to pay back the full amount of the loan (including interest) within a fairly short period of time. Make sure that you crunch the numbers beforehand so you’re sure you can pay back the loan you take out on time.
Consequences of Non-Payment
It can be tempting to borrow money with a payday loan and not pay the money back, but there are serious consequences associated with doing this. Those who do not clear the full balance of their account with the lender by the agreed upon date will suffer a major hit to their credit. The lender can also choose to take you to court to get the money you owe them, which is the last thing you want to go through.
Make sure you know exactly when your loan is due so you don’t accidentally miss it. You will need to take paying back your loan very seriously, because the repercussions for non-payment are quite severe. Being even a day or two late on paying back your loan could mean incurring some ridiculously high late fees from the lender.
Get the Money You Need When You Need it
The best thing about payday loans is that you can get the money you need very quickly so you don’t have to struggle any longer than is necessary. You will first be required to fill out and submit an application for the loan you need online. This is a very straightforward process that won’t take up much of your time.
After you have completed the loan phase of this process, you will just need to sit tight and wait to see if you have been approved (you’ll be notified via phone or email most likely.) The funds will be put into your checking account electronically, so there won’t be any paper checks to mess around with. This is an excellent overall borrowing option for many unemployed people, though approval is never guaranteed. The more you learn about these loans, the better your chances will be of getting your funds.