There are some financial situations in our life when we struggle to be stabilised. Unemployment is one of those circumstances where you find a lot of trouble keeping the cash flow going.
Losing the job can be of two reasons. One is when you are careless and do not own the responsibility that your boss has given to you. It means your company has released you from the job.
Another reason belongs to certain circumstances through which you have to leave that job. It can be not getting salary on time, you have management issues, or you are going to settle at another location.
In the first situation, you cannot do anything because you are the culprit of not having a job. You can have financial assistance in the latter case, as job loss happens due to certain situations.
For this scenario, the UK marketplace has plenty of options related to unemployed funding. Here, both mainstream lenders and online lending institutions offer loan deals.
How to Get Unemployed Funding?
Many financial experts are in the view that unemployed people should approach mainstream lenders to get reliable funding. They have a perception that these are genuine institutions and have more credible loan deals.
Some other financial professionals provide a different view. According to them, online lenders can offer more modern loan deals. These loans will include more flexibility than the traditional lending providers.
For instance, with online or direct lenders, there is always a possibility of taking out loans for the unemployed with bad credit and no guarantor. Many jobless individuals have issues like less-than-stellar credit history. Thus, no one wants to take their guarantee.
Getting these loan deals is beneficial because you can have maximum chances of borrowing. The traditional lenders seem more fixed to their approach.
Unemployed Funding and Exemptions that You Want
The easy availability of flexible loans in the marketplace tempts jobless individuals to borrow every time. Still, the journey is not smooth as you think.
If you want a responsible lender, a lender also wants you to be a responsible borrower. Therefore, you should be careful while applying for loans. Follow all the steps, mention only genuine personal details and present the correct credit report.
If you are correct from your side, you can expect certain exemptions from the lender’s side. However, one thing is for sure you can get exemptions only from the direct lenders.
We have pointed out some of the immunities in your wish list while seeking unemployed funding.
- Soft approach towards credit check
You have lost the job, and not much income is there to pay utility bills or manage emergency expenses. This situation often causes harm to your credit score, and all of a sudden, you find your name on the list of bad credit people.
When you apply for the loans, the lender first checks your credit history. If it is well-maintained, any loan provider allows easy funding. If it is not satisfactory, your loan application gets rejected.
All these things happen when the lender does a hard credit check. If you are desperate to have urgent funding, you want a soft approach from the lender’s side. In precise words, you want a soft credit check that usually not leaves any search footprint on your credit profile.
- Not so cumbersome loan procedure
The loan procedure plays a considerable role in getting easy and quick borrowing from the lender. If the procedure requires lots of paperwork and legwork, you have the loan approval in two to three days.
It happens typically with the mainstream lenders like banks. They have many formalities for the borrowers, which they have to fulfil.
During the financial emergency, you want to stay away from the cumbersome loan application procedure. Instead, you want a procedure where you get the approval on the same day. Not only the approval but also the fund transfer.
- Acceptance on limited income source
You are unemployed, and you are no longer earning a full-time income. Lenders always want a reliable income source to get the proper repayments from the borrowers.
Nevertheless, most lenders accept part-time income, but they do not allow significant funding. They fund according to the capacity of part-time monthly earning.
Suppose you have a lost a freelance project and thus no part-time income is there. What will you do? You have only the unemployment benefits, which you have received from the government. You want an exemption where your lender can offer unemployed loans on benefits.
- Funding till getting the new job
There are many lenders providing loans for a limited duration. For example, loans are available only for 3 months or 6 months. Sometimes, you want an extended loan term, but your request has been denied.
What will be the best option in this regard? You need to research a lot to find out a deal where there is a longer loan term. At least, you can borrow funds until finding out a new job.
It is necessary because you do not know at what time you get the new employment. Therefore, you need to keep the cash flow going to maintain both expected and unexpected expenses.
A conclusive discussion
This blog has discussed some of the most preferred loan exemptions that any unemployed individual wants while applying. These are significant, too, because you need funding without getting too many complications.
In conclusion, we can say that these exemptions are only possible if you get loans for the unemployed from direct lenders only. The primary reason is their flexible lending nature, where they can prepare loan deals according to individual circumstances and capacity.
If you can afford a deal with a particular interest rate, you get the loan approval. Otherwise, not!
At the same time, you need to focus on the proper implementation of your loan plans. It means you share only genuine details with your lender and ask for funds for only relevant funding needs.
Excessive borrowing beyond your repayment capacity may not allow you to get these exemptions. Borrow according to your loan affordability because unemployed funding is the need of an hour.
