If you’re currently out of work and looking for some cash quickly, we have short term loans for the unemployed available. Offering a quick pay out and high acceptance rates, we can look to help you even with a bad credit score. Why not click apply now, and we can see what’s available for you from our list of over 40+ direct lenders today.
What Are Unemployed Loans?
Unemployed loans are designed to help an applicant that is out of work and receiving a small amount of income. Whether that’s from benefit payments or other means. You’ll need to show that you have the affordability for the repayment terms you’re seeking. It’s best to use our personal loan calculator to see approximately what you could be paying monthly first. As a direct lender, we’ll provide you with the loan amount you want if approved. If we can’t, we’ll show you a personalised list of offers from potential lenders who can help. All you have to do is fill in one quick application, and we’ll show you offers without a credit search first. Click apply now today to see how we can help you!
How Can I Be Eligible for Unemployed Loans?
To be eligible to apply for quick loans for the unemployed, you will need to meet the following requirements:
- Aged 18 years or over
- Have a UK bank account
- Are a UK resident
- Have a regular income from benefits etc.
- Have a guarantor who can co-sign your agreement
The above is a minimum requirement for unemployed loans. If you cannot say yes to all the above, then you’ll need to look at alternative means of borrowing. We want to help everyone who is in a difficult situation financially. However, we cannot guarantee the approval of any small loans for the unemployed. You will be subject to a credit check during the application process.
Who Can Be A Guarantor for Loans for Unemployed in the UK?
If you’re unemployed, you’ll need a guarantor to stand the best chance of approval for short term loans for the unemployed. This is because if you’re unemployed, your own source of income will be little to none. This means you may struggle to meet repayments regularly. Having a guarantor co-sign your agreement will increase the chances of being accepted for unemployed loans. Because they will be in a better financial position than you, they will guarantee that repayments will be made. This is in the event you cannot fulfil the monthly repayments on time.
To apply for quick loans for the unemployed, your guarantor will need to meet the following criteria:
- They will need to be either a close relative, friend or co-worker
- They cannot be your spouse or someone who you share a joint bank account with
- The guarantor must be in full-time employment
- They need to have a good credit score
- They will need to be at least 21 years of age. Although some direct lenders may agree to someone over a minimum of 18 years old, but no older than 75 years old.
If you can find a guarantor that meets all the above, you can apply online for short term loans for the unemployed. When we process your application, we’ll determine if you and your guarantor are suitable for unemployed loans. We’ll conduct a credit check on your guarantor as part of the application process as well.
What Are The Benefits of Applying for Unemployed Loans with a Guarantor?
Whilst you can apply for unemployed loans without a guarantor, approval whilst not working is very slim. This is because you’ll be deemed a high-risk applicant without the security of a pay check each month. However, you may have a regular source of income that doesn’t come from employment, for example, benefit payments. If so, you may still have the affordability to make repayments monthly. Having a guarantor as part of your application can help lower your risk to the lender. This can increase your chances of being approved and getting the money you want. A guarantor loan through Personal Loans Now means:
- Faster Payout – 3 minute application, 90 second approval, same day funding.
- Full Online Application – You can apply online with just one application and no waiting to sign paperwork.
- Low APR Rates – we’ll find you the lowest rates available for your circumstances.
- Ideal if you have Poor Credit – you’ll have someone with good credit as a guarantor. This means you will have a better chance of being approved.
So, don’t be put off if you are currently unemployed; we’ll look to help as much as we can to help get a loan for you. Especially if you have a guarantor that meets our eligibility.
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What Happens if I Can’t find a Suitable Guarantor for Unemployed Loans?
You may not find anyone suitable as a guarantor for short term loans for the unemployed. This means you may not receive the loan amount you want. However, this doesn’t necessarily mean you cannot receive any form of borrowing. You may be able to try one of the following options as an alternative:
Other Unsecured Borrowing – There are many other forms of unsecured borrowing you can try for. Many suitable lenders can offer to help. Please note that this could mean you pay a much larger amount of interest throughout the repayment terms.
Credit Unions – an alternative to high street bank lenders. To use a credit union, you will need to become a member. As they are a not-for-profit organisation, they may be more willing to help you where others can’t.
Credit Cards – A credit card can be a good option if you can get a preferential rate. Some credit card companies providing 0% interest options. However, you may find that this isn’t available to everyone, especially if you are unemployed.
Building Society or Bank – if you have already, speak to the company you currently bank with. They may be able to help you as an existing customer and offer a personalised solution.
Unemployed Loans FAQs
Can Unemployed Loans with a Guarantor Work Out Cheaper?
Sometimes, unemployed loans when using a guarantor, can work out much cheaper than if you applied alone. This all comes down to the risk involved for the lender, with the amount of interest determined by this risk. Here at Personal Loans Now, we offer a fixed rate interest of 39.7% APR representative. However, this can be much higher with other lenders and a variable rate may be the only option. This is where the rate of interest can increase and decrease during the loan term. Whilst there is no guarantee your loan will be cheaper with a guarantor, it increases your chances of being approved.
I’m Having Financial Difficulties, Can I Still Apply For Short Term Loans for the Unemployed?
Unemployed loans are ideal for someone who is out of work but has the affordability to make repayments. They are designed for short term borrowing and not for any long term financial difficulties. If you’re currently experiencing financial difficulties, we recommend you speak to an impartial company. The Money Advice Service, will be able to offer you impartial advice to help. If you’re unsure of your current affordability, use our online calculator to see the repayment cost. You’ll be able to see the interest charges as well. Work out how much your income and outgoings are every month so that you can see what your current disposable income is. Then, you’ll have a much better overview of your current finances.
Can an Unemployed Loans Help Improve My Credit Score?
Absolutely! One of the biggest issues you may face when you’re unemployed is the effect it has on your credit score. By having lending with high approval rates, this will have a positive impact on your credit file if accepted. In the long term, whilst maintaining the repayments, you can slowly build your credit score back to a positive position. Hopefully, you’ll find a regular source of income and employment so you can borrow larger sums in future.
What Happens if I Miss Repayments on Unemployed Loans?
The first thing you need to do is contact the lender who provided you with the short term loans for the unemployed. If they can help resolve your position, then they will. As you’ll have a guarantor as part of your loan, if you can’t fulfil repayments, they’ll be responsible to help. Ideally, when you apply for unemployed loans, you’ll be in a position where you can guarantee monthly repayments. As a responsible lender, we’ll carry out relevant checks to ensure this. We’ll make sure your guarantor and affordability match the repayments for small loans for the unemployed.