If you are struggling with bad credit history and unemployment both at the same time, you need to have a strategic plan to restore your credit health. Main stream lenders do not offer loans for unemployed people. Only private financial companies could extend you financial help. However in wake of a lot of active loan sharks and unscrupulous lenders you need to be really careful in your approach.
Let’s find out a step by step guide to avail loans for unemployed with bad credit history.
Key factors to keep in mind when you seek a loan
- Look for instalment loan
When you look for unemployed loans with bad credit history, it is important to look for instalment loans. It helps you share burden of repayment to a great extent. You can opt for fixed instalments as it helps you plan for repayment much in advance.
- Affordable installment
It is equally important to make additional efforts to fix an affordable instalment loan. With ease of affordability, chances for successful repayment increase. Regular repayment on time would build good history and improve your credit worthiness.
- You may request delayed repayment
With unemployment, cash crunch is imminent and you just can’t escape shortage of funds till you find the new job. You may request the finance company to let you repay later on. Many a times, lenders agree to delayed repayment owing to uncontrollable circumstances such as loss of job. For, late payment is certainly better than no payment. With ease of deadline, the burden of repayment eases off and you can concentrate on searching for new Job.
- Consolidate loans
If you have too many financial obligations including loans and credit bills, you should look for a consolidation loan to lower the burden of repayment. You may use a property to avail a loan and further lower the financial burden.
- Payday loan
It is quite tempting to apply for instant loans after unemployment such as payday loans for unemployed with benefits. However as easier is disbursement of payday loan, as is its reimbursement. With lack of stable income you should not risk your stakes with payday loans. Nonpayment of payday loans could be financially suicidal as it attracts a lot of penalty and additional charges.
How to avail right loan for unemployed with bad credit?
The safest way to apply for unemployed Installment loans for bad credit in UK is to contact a broker and seek his professional advice.
Here are steps to follow:
- Search for FCA regulated brokers online.
- Make a list of experienced brokers and read reviews.
- Choose one and visit their website to fill an online form.
- The broker would contact you. Share your credit requirements.
- He will share best suited loans for your situation and discuss a repayment plan at the same time.
- Stick to repayment plan and make every effort to repay on time.
- As you repay the loan, you would improve your credit history and become eligible for more loans.
Simple alterations in your day to day habits can save you enough to spare for loan repayment. Search online for frugal living tips and implement a few changes in your lifestyle. You can begin using cycle in place of car for short distances and save a lot on Auto Fuel. Similarly make a budget and follow it strictly. Postpone expenses such as gym Membership and alike. These efforts may appear insignificant when you consider them initially, however daily saving would result in enough pounds for the month.