When someone loses their job, their need for money will rarely be greater. Whilst the bills stay the same, household income is far lower. Few lenders will help people who are in between jobs, especially if they have a poor credit history. However, loans for unemployed people are available from a specialist payday lender without the basic requirement of a credit check. Pawnbrokers offer instant bad credit loans for the out of work, not to mention those in temporary employment or employees who are still in their probationary period.
Fast Emergency Cash with a Credit Card Cash Advance
Whilst redundancy normally means that household income plummets, a lot of people will still have active credit agreements that can be turned to. Rather than taking out a loan for unemployed people, it may be possible to use an overdraft facility or get a credit card cash advance. The majority of providers allow the customer to withdraw a defined percentage of their credit limit from an ATM machine. Whilst there will be an administrative charge and the rate of interest will be higher than a conventional credit card purchase, it is often cheaper and more convenient than taking out a loan with poor credit.
Pawnbroker Loans for Unemployed People
Loans with no job will be provided to customers who are able to provide collateral, such as gold or silver. A pawnbroker will make an on-the-spot valuation of the items value in order to determine the maximum amount of an instant bad credit loan. Once the client decides how much they wish to borrow, they provide the lender with identification, the collateral and then sign a legally binding contractual agreement. The customer will receive a receipt (in order that the item can later be redeemed) along with their unemployed tenant loan. According to the National Pawnbrokers Association, 88% of all goods are redeemed.
Quick Same Day Loans from a Family Member
Although personal pride can get in the way of asking, it is sometimes better to get an unemployed loan from a friend or member of the family. Not only are the terms of borrowing cheaper, the repayment term can be extended. It may even lead to a cash gift to help that person get back on their feet. However, it is important to appreciate that non-payment can cause friction between family members.
Credit Union Loans with No Job
A credit union is a non profit organization that operates purely for the best interests of its members. People will join on the basis of a shared interest, such as work or locality. Unlike a pawn shop loan, credit unions will work with their members in order to decide whether borrowing money is affordable. This will involve a careful budgetary analysis. Whilst they want to help their members, they don’t want a family to experience further financial difficulties due to a poor lending decision. Should a member experience difficulty repaying the debt, a credit union will work with that member to devise a suitable repayment plan.
The Danger of Same Day Unemployed Loans
Whilst an unemployed tenant loan can provide a financial lifeline when household income is low, it also leaves less money to pay the bills in future months. If expenditure exceeds income for a protracted period of time, that person will fall behind with their loan and mortgage repayments. A loan with no job will only help those who are in-between jobs for a few months, not the long term unemployed. Always consult a credit counseling service as they may be able to help with budgeting, prioritising bills or recommending an appropriate debt reduction strategy, such as a debt settlement program or debt management plan.