It’s hard to survive if you don’t have a job. The rent and groceries need to be paid for. Let’s not even talk about the bills that are due at the end of the month. Life without a job is pretty tough. When you’re unemployed, lenders give you a hard time. High street banks and building societies will refuse to give you money if you don’t have a stable income. However, there is hope for you yet. The lack of income doesn’t necessarily mean that you can’t secure a personal loan. There are several loan products destined for unemployed workers. If you would like to find out more, please continue reading.
So what if you don’t have a job? Get the money today
As mentioned earlier, there are financial products for people who find it impossible to make ends meet. There’s no reason to worry because lenders are obligated to lend money in a responsible manner. You’re allowed to borrow only what you can repay. Most importantly, your creditor will offer all the information you need. being approved will depend on whether you can demonstrate that you can make the payments on time without getting into substantial debt. The idea is to help you get back on your feet, not to burden you.
Carefully consider all options before you borrow money. Credit Raters, who help people make smarter financial decisions, strongly advise you to think about how much you would like to borrow, what you can realistically afford to borrow, and research and compare the available options to get the best deal for your situation. If you have a good understanding of your financial situation, you’ll have a better chance of obtaining a lower interest rate. Focus on your cash flow. There’s not a lot of money coming in, but still. Attention needs to be paid to living expenses and financial commitments.
What lenders look at when evaluating your application
Not all lenders are created equal, but some of them focus on the same aspects throughout the loan review process. The most important characteristics that credit issuers take into account when evaluating your application are:
Income
You don’t work, so you don’t have an earned income. Yes, but you might still have a chance to qualify. When you lose your job, you’re entitled to unemployment benefits. They’re fully taxable as ordinary income, in case you didn’t already know. The point is that if you qualify for unemployment, that counts as income. The lender might consider your spouse’s income. In this case, you have to use your spouse as a co-applicant.
Debt-to-income ratio
The debt-to-income ratio is basically the percentage of your income that goes towards paying debts. If it happens to be too high, the credit issuer will refuse your application because you don’t have enough money to meet your financial obligations. Generally speaking, lenders expect a debt-to-income ratio that doesn’t exceed 35%. To increase your income, you might want to start freelancing. This will allow you to survive, even if it doesn’t pay all that well.
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