October 3, 2019
by Isabella Elmore
The unemployed loans are certainly the saviors when you do not have money to pay your expenses after a job loss. Pending debts can put you in a great mess of money and at that time, even a small amount was of big help. However, there are some important points to keep in mind before you apply for the loan and also after you take funds.
PREVENTIONS BEFORE YOU APPLY
Take a first look at what is required to follow as the tips of caution before you apply for the loans for unemployed.
Repayment capacity is a MUST condition to have
Never misinterpret the concept by thinking that loans for unemployed means funds that are given to the borrowers without any condition. The vital situation to prove repayment capacity is always there and you have to follow the rules on that aspect. Through any possible source, it is necessary to prove that you can repay the loan.
Applying too many lenders at the same time? Oops! A BIG mistake
Yes, it is natural to feel desperate to get funding during unemployment. After all, there is so much to do. From grocery shopping to daily travel expenses (you are giving interviews, right?), to monthly bills, everything is important.
The need of money can put in haste and also anxiety to increase the possibilities of availing funds. As a result, the natural inclination provokes to apply to many lenders at the very same time. Your perception behind this is – ‘If one rejects my application, the other will accept’. This is wrong thinking as this only brings the threat of multiple search footprint of credit check done by all the leading companies.
You look credit hungry and that makes the lenders reluctant to give approval. Their perception is not wrong and has a logical base. If someone is so eagerly looking for funds, definitely he/she is in great financial chaos. This means the person may not be able to pay off the loan on time.
The actual message is, apply to one lender at a time.
Do not apply to ‘ANY’ loan deal in a poor credit situation
It is true that online lenders provide funds to bad credit scorers too whether they are employed or unemployed. But not all lenders do this. For some, it is necessary that if the application does not have jobs, at least there should be a good credit score.
It is necessary to precisely search for the bad credit loans in Ireland for the unemployed. The ‘word’ through which your search the loans online is important. It is necessary to type the exact requirement. If funds are needed with poor credit situation, then it is necessary to mention ‘bad credit’ while searching for the unemployed loan products.
The direct lending is all about the online existence of financial solutions. The words you use while searching for them affect the result you see on the screen.
PREVENTION AFTER YOU GET FUNDS
If you succeed to get approved for a loan, do not consider the work done as still there are certain concerns. Pay attention to several aspects that are impossible to avoid, if you do not want to worsen your situations.
Do not apply for another loan until the current one is paid off
It is always advisable to pay off the current loan before you take the new one for unemployed.
This can have two bad effects –
One – You can get rejected because of already having a loan obligation. The credit check process for the new one can degrade the credit rating.
Two – Even if you get the funds, you may find it difficult to pay off both the loans and later a big mess may create. Missed and delayed payments can cause a big loss.
Never forget to pay installments on time – credit score may degrade
When you lose a job, the pending expenses give you the fear of getting into the poor credit situation. When funds come through a loan, you feel relieved and happy that now it is easier to tackle the financial matters. However, this relief should not make you careless or provoke a lazy or irresponsible attitude in paying installments.
Every missed or delayed repayment brings a serious degradation in your credit score. This is sure to make the situation even worse. You took the money for financial betterment, but let the situations slip from your hands. NO, never let it happen.
Prevention is always better than cure! Know the ways through which you can play safe before taking the loan and after getting funds. Conditions that apply are simple, but not least less in importance.