When financial emergency crop up, you could not rely solely on your monthly income. What if you are recently out of job? Usually, getting control over the financial contingencies seems to be a tricky task and unemployment will put a burden on you. With lack of active income and increasing demands of your loved ones, your situation starts getting worse. There is no doubt that the current circumstances that you are in can be improved only if you seek the assistance of additional funds.
In the absence of steady income, it indeed seems a great choice to take out the loans for unemployed people. If you are still living in the past and trusting on your banks, it might sound weird to you. The time has changed and loans have become something that is not out of the reach of people with no job.
Nowadays, turning to the online lenders instead of high street banks has become a trend. Even though you are not earning, online lenders can help you. However, you should not be desperate and believe every lender with your eyes closed. You might have heard the expression ‘you should not trust on anything blindly’. Among the hundreds of reliable lenders, there can be a dozen of fraudulent. Here is the brief guide that highlights the ways how lenders lie to you while lending the loans during the days of unemployment:
#1: You Are Unlucky If You Do Not Have A Reliable Friend
First, it is important to have a reliable friend, who can support your loan request as a guarantor and this is the way that lenders can lie to you. Before you think that you are unlucky, you should look at your current circumstances. Judging by your financial condition, people do not show interest in becoming a guarantor. There are many lending companies, who consider your loan request even without having to present a guarantor.
#2: Your Credit Score Is the Licence to Get Funds
Making a decision is the part of work of lenders. But, saying a ‘NO’ to loans for unemployed people is not a job of a genuine lender. Greedy lenders always keep their eyes on those, who are desperate for funds and that is why they say your credit score is the licence to get funds. You might get confused if fraud lenders never miss a chance to take advantage of your situation, then how your credit record can matter to them. Actually, this is a trick to agree you on the terms and conditions decided by such lenders as they know you are desperate for funds and will definitely get accept their proposal.
#3: You Are Not A Perfect Candidate for Short Term Funding
It may sound funny but it is true that scam lenders claim that you are not a perfect candidate for the short term funding. But, this is wrong. Actually, this is a way to make you prepared for putting up collateral. Such lenders know that you do not have a permanent job which can support you to make repayments. In that case, making repayments of a long term loan tends to get tough and they can occupy your property legally.
#4: Benefits Are Not Counted As Income Source
For a jobless person, government grants are such a relief. In fact, those lenders, who are working with the sole intention of helping customers, allow you to make repayments of the loan with the benefits you receive every month. On the contrary, fraudulent lending companies do not count the benefits as an income source. By making an issue of this point, such lenders compel the borrowers to avail a loan with strict lending norms.
#5: High Interest Rate Is What that You Have To Pay
Sometimes, people get excited to see the deal that they are looking for and they do not check for the interest rates charged by the lenders. This is because a few loan providers keep the interest rates high on loans for unemployed people in the UK. These lenders ask you to pay high interest and without looking for other deals, you get ready for it.
People learn from their mistakes. Before it is too late, you should consider the above-mentioned ways while shopping for a loan. Therefore, these ways might help you move on quickly in your life with the effective loan product and enhance your financial situation without a delay.