It is no secret that world over, times are tough. Numerous people are losing jobs that they have had for years. Finding oneself suddenly unemployed with no steady cash flow may make life immensely difficult. While many opt to borrow money from friends and family, there is another road less taken. One can take out a loan to make it through the tough period. The challenge with this route, however, is that financial institutions are often unwilling to lend money to an individual without any traceable or stable income. There are some places to turn for assistance nonetheless.
Though conventional credit providers normally shun unemployed borrowers, there are a handful of credit providers who specialize in lending to people in extraordinary circumstances, such as those who are unemployed. As such, one may not access mainstream loan capital but may still have a chance at getting credit at one of these. It is unfortunate that in many cases, those who find themselves in a financial jam after joining the unemployed part of society also suffer a bad credit history. If this is the case, there is a curative measure.
By working on improving your credit report, individuals can make themselves more attractive to money lenders. Make it a point to keep up with outstanding payments, no matter how small or ‘insignificant’ they may seem. Another thing is to avoid applying for different credit facilities in a small time period. Every application for a loan is entered into your credit report. In the event that a lender denies your application there is a good chance that the next lender’s decision will be influenced by past lenders’ assessment on your application.
As you shop around for potential lenders, keep in mind that being unemployed, you are considered a high risk investment. Because of this perceived high risk, the interest rates charged on the principal borrowed are bound to be higher than average. For this reason, it makes more sense to apply for substantial amounts where possible. These can be moneys to start a business with, invest or other commercial activity. It’s never a good idea to get a high interest loan purely for consumption purposes.