Are you in search of loans for part-time workers? Then here is something for you. Not sure if you fit in the category of a part-timer worker? Let’s do a quick clarification on that for you too.
Part-time workers are active workers who work less than an average of 30 hours per week. Although there might be no stipulated hours to differentiate full-time workers from per-time workers, part-time workers usually work fewer hours than full-time workers. However, work hours for part-time may vary across companies.
Now that you know who part-time workers are, let’s learn more about the loans you can get as a part-time worker and the options you have to access them.
Best Loans For Part-Time Workers in the UK
No matter how credible your budgeting is, life happens sometimes, and you may run out of cash for your needs. Personal loans might be your best bet if your earnings or savings as a part-time worker are insufficient and you need some money to suffice.
What Is A Personal Loan?
Personal loans are loans from a credit union, a bank, or an online lender for personal use. You get personal loans primarily for personal funding such as home renovations or repairs, moving expenses, and vacation costs. They could also serve for medical bills, wedding expenses, debt consolidation, and other unforeseen expenses. Some lenders may require you to pay fees to access personal loans, while some there offer free services.
Types of Personal Loans
As a part-time worker, you can get two types of personal loans: secured personal loans and unsecured personal loans.
Secured Personal Loans
To get a secured personal loan, lenders often require the provision of an asset as a guarantee for repayment. This could be in the form of a certificate of deposit, a vehicle, your mortgage, or a savings account. Secured personal loans are used mainly by people with low credit ratings or scores and often come with low-interest rates.
However, secured loans compensate with their low-interest rate because the lender can easily leverage the collateral as repayment for the loan. This makes lending secured personal loans less risky when compared to unsecured personal loans.
Unsecured Personal Loans
On the other hand, unsecured personal loans are high-risk loans that require no collateral. So, you don’t need to give up your house or car if you find it challenging to pay back. Although no collateral is required to guarantee your loans, unsecured personal loans charge a higher interest rate for their high risk.
The primary requirement needed to access the loan is a good credit score and, sometimes, a qualified co-signer. According to Experian, a fair credit score should be between 721 and 880, while a ‘good’ credit score is between 881 and 960.
Fixed-Rate And Adjustable Rate Personal Loans
A fixed-rate personal loan lets you know the exact amount you pay in monthly instalments. On the contrary, adjustable personal loan rates vary over time. While it may start with a lower rate, future payments are usually unpredictable.
How to Boost Your Chances of Getting Part-Time Worker Loans
To improve your chances of getting cash loans for part-time workers, you need to consider some essential factors, and here are a few of them.
- You need to have a good credit score. If you do not have a good one, try boosting those scores before seeking the loan. You can do this by making prompt payments when you borrow loans.
- Consider saving up for deposits so you can borrow smaller amounts.
- Get your loan from less expensive lenders to borrow a smaller amount. If you’re looking for such lenders in the Uk, 786 Loans is your best option.
Benefits of Personal Loans For Part-Time Workers
Obtaining a personal loan as a part-time worker has its advantages, and here are some of them.
- No collateral requirement
- Access to high borrowing limits
- Lower interest rates
- Wide range of use
Disadvantages of Personal Loans For Part-Time Workers
- Since there are no collaterals, unsecured personal loans require more creditworthiness to access.
- Aside from the interest rate, some lenders may include a fee for unsecured loans. Also, there is usually a fine when the borrower fails to meet the specified payment date.
Applying for A Personal Loan at 786 Loans
786 Loans is a customer-driven online loan broker in the UK that delight in searching out tailored loans for our customers. With an easy application process, 786 Loans help you secure fast personal loans for your needs. And the beautiful thing is that everything is online; you can process your loan from start to finish from the comfort of your home.
Personal loans are the best loan option for part-time workers in the UK. But before you apply, it is best to ensure you have a reliable source of income to guarantee due repayment. You can apply through 786Loans for a faster and easy loan application experience.