As the old adage goes- Tough times never last, tough people do; bad credit situation is temporary too! Whether you are struggling with very poor credit score or loss of job or combination of both, you need to take step by step efforts to build your credit health.
For no drastic changes could be introduced in a very short span. You need to gradually work towards mending your credit situation.
With the loss of job, vanishes your source of inflows, while the outflows remain constant. There are many expenses you cannot do without and thus there is an imminent need for unemployed loans.
As you receive the pink slip, first of all, applicants for unemployment benefits. With benefits cheque in your account, you would become eligible for a cash advance or payday loan. But owing to high cost of instant loans, it is recommended to opt for short term loans for unemployed people on benefits.
For availing a short-term loan, you need not have a guarantor or collateral as this can be availed as 1, 2 or 3 months short-term loan.
When you contact a broker to find a short-term unemployed loan, you set across your terms and request delayed repayments. Brokers are experts in locating flexible loans. With delayed repayment, a jobless person can take a big sigh of relief as they need not bother about the loan repayment before next couple of months or until they find the new job.
Likewise, short-term Instalment loans work for bad credit health. Short term loans are easy to manage and repay. As you repay the loan, it builds good history and improves your credit score.
However, when a person with high liability loses a job short-term loans would not work for him. He would need to ensure timely repayment of his loan repayments and credit bills along the regular household expenses. Herein one can either choose loan refinancing or long-term unsecured personal loans in the UK. By opting for long-term loans, one can make an overall plan to keep their credit situation under check.
Thus, the loan amount, duration and rate vary according to the borrower’s credit situation. Keep following things in mind when you seek help on unemployed loans.
- Always contact an experienced and FCA authorized loan broker.
- Never borrow for more than what you require.
- Choose ease of repayment and have affordable instalment plan.
- Stay away from lump sum repayment plans such as payday loans. In the absence of income, it is recommended to opt for instalment loans.
- Have a repayment plan and ensure the successful repayment on time.
With all these points in mind, I hope your credit issues remain as temporary as your job loss.