Unemployment causes confusion and chaos. On one hand your monthly source of income is ripped off and on the other hand uncertainty, a new job lingers around. You do not know how to cut the regular expenses or arrange funds.
Besides a lot of myths and the half-baked information is spread all over the internet to perplex anyone who wants to go beyond the limitations of joblessness. When you receive a pink slip, you should immediately take prudent financial decisions and protect your credit.
Availing additional loans for unemployed helps you ease an incessant cash crunch and save your future plans. Let’s bust the myths surrounding unemployed loans and know about the key facts pertaining to borrowing without a job.
1. Is it possible to avail unemployed loans in the UK?
It would be wrong to say that loans for unemployed are not available in the UK. Although conventional lenders do not extend financial support to jobless people, there are some private lenders who do extend their support online.
It is a task to locate a lender who deals with unemployed loans. You can simplify your research by contacting a loan broker for the purpose. By contacting an FCA registered loan broker you could peacefully contact a lender. Brokers can also help you avail funds to manage your previous loans during unemployment.
2. Does unemployed loan affect your credit?
Try answering if student loans hurt your credit. Availing loans never hurt your credit score, not repaying it does so. With joblessness, your credit worth is already at a low. By raising a loan it would not make things difficult for you unless you fail to meet your obligations.
3. Is it possible to build credit with unemployed?
With no source of income, you can look for alternative sources of income and government grants and benefits to mark your credit worth. In fact, as the news of lay off breaks in, you should start preparing to apply for unemployed benefits. Usually, it takes two weeks to receive unemployed benefits cheque in your bank account after your request is accepted. As some sort of regular income is directed to you, it makes you eligible for a loan.
4. How to repay on time?
With unemployment, repaying could mean a lot of stress and tension. If you have already had too many loans on your shoulder, you can consider contacting your current lenders and ask them to extend the loan repayment deadline. Or, you can consider refinancing your loans. A loan broker can help you search a debt consolidation loan or personal loan to meet the financial liabilities.
Likewise, it is wise to seek delayed repayment clause with new unemployed loans. For, your financial hassles would most likely cease to exist as you get your new job. You should thus focus on finding a job.
5. What should be a financial plan of action with unemployment?
Being an unemployed person, you need to be prudent enough to channelise your funds cautiously. Do not raise very high loans nor even exhaust all savings which are meant for future goals. You would need to keep the balance. Delay expenses and adopt frugal living.
You need to protect your credit score at every cost. Repayments of all loans should be planned.