While the rate of unemployment in the UK has fallen to its lowest level in the last 40 years, still more than a million people seek unemployed benefits. However not all could ever qualify for the allowance or benefits from the government.
Blame it on automation or recession, thousands of students join the race of job seekers every year in the UK and depend on short term loans for unemployed people and depend on benefits till they find their first job. If you too are looking for a preferential unemployed loan, you should first of all apply for unemployed benefits.
In fact if you haven’t applied for electoral role in your state, do so now. These two add-ons to your profile would increase the legitimacy of your loan application.
Besides, before applying for loans for unemployed, use following seven points to lead a life full of self esteem:
- Pull out your free credit report from Experian or Equifax and study your report. Although in the absence of a salary cheque, your score is insufficient to make you eligible for a loan; your credit history can help you avail better rate of interest. Check out if you have red flags in the past. Accessing your report helps you know ways to face the response of a lender.
- In the absence of income, not many lenders would be keen to lend you unemployed loan. So it is necessary to list your requirements and know exactly how much you want to borrow. You should raise loans for the necessary expenses only. However the amount should be sufficient to let you focus on your next job search. You need to settle down with the amount that a lender is willing to advance your way and serves your needs too.
- When there are high chances of loan rejection, it is wise to build a rapport with the loan agent of the lender and request them to make no credit check loans or soft credit check on your query. For, every query would make a mark on your report and too many queries in the short period can build a red flag.
- While the cash crunch is for ‘real’ with a job loss, you should restrain yourself applying for emergency instant loans such as payday loans. These are very expensive cash loans which are disbursed almost instantly. The non repayment of payday loans can add too much of liability which would be hard to meet with unemployment. Besides, all of your benefits allowance would dry out to cover the payday loan.
- It is however recommended to opt for installment loans or short term loans for unemployed You can look for delayed repayment or advancing instalments as per your convenience. A broker can perfectly guide you on the purpose of the loan.
- There is no point in letting unemployment take a toll on you worth. The crisis is a temporary one and so should be the consequences. You should focus on up scaling your skills and search for a new job. As you would find the new job, you could successfully take care of your financial obligations soon.
Make a budget. By putting up a budget and a check on your expenses you could sail this challenging time of life in the most rewarding way. Once passé, you can use your winning story to inspire many others like you. Who knows, you run a blog to let the world know how you faced unemployment with winning colours and make some bucks too!