Should You Take a Loan When You are Unemployed?

Posted by

Much as you work all the harder to remain in the good books of your employer, you cannot escape from layoffs. During unemployment, it becomes challenging to be on the top of outgoings. Even if you have a part-time job or another source of income, you fail to meet all of your needs and eventually you get tempted to take a loan.

Asking a traditional lender for financial help is not a cinch when you do not have a steady flow of income. They do not disburse money unless they are certain that you will reimburse the whole debt. However, some direct lenders do not deny disbursing loans in Ireland for unemployed.

You can qualify for an unemployed loan as long as you are the citizen of the Ireland, 18-years-old, and have a functional bank account. Your lender will ask you submit your current income details, which can be any part-time source of income or an income-generating asset such as rental income or govt annuity. They will assess your income as well as outgoings to evaluate how much loan you will be able to afford. Based on your current income, the disbursal limit is determined. You can also apply for such loans if you have cracked your interview but the joining date is far.

The lender will also look over your credit history. With a good credit score, you have the right to negotiate for interest rate. However, you will pay high interest rate if your credit report is less-than-fair. Now that you have come to know about your eligibility and disbursal way, but the question is whether you should borrow money when you are already running on a tight budget.

Unemployed loans come with high rate of interest, so make sure that you have enough money to pay back on time. It is essential that you should increase your credit score before you apply for such loans to get a reasonable deal. Do not apply for more than what is required, otherwise you’ll not get out of your debt.

What if your application is turned down?

Chances are direct lenders will not sign off on your loan because your score is poor. In this case, you can use any valuable asset such as your car as collateral against your loan. Note that the asset value should be equivalent to the amount you borrowed so that lender will release funds by selling it if you make defaults. Collateral apart, you can also find a guarantor with a good credit history. If you fail to put collateral and arrange a guarantor, you should seek financial assistance from your friends and family.

Can you apply for a loan other than unemployed loans?

Getting fast loans for unemployed in Ireland is not as easy as pie. If you do not have enough funds, your application is rebuffed. However, you have still some options to finance your needs.

Doorstep loans: As the name suggests, home credit loans are delivered at your doorstep. An agent will visit your home and discuss your income sources to find out the best plan to meet your specific needs. In fact, the agent will visit your home to collect funds on the due date. The best part of these loans is you can choose a favorable due date to ensure that you do not commit any defaults.

Text loans: You need to have a cell phone to text your lender the amount you need and they will disburse funds without further ado. Text loans are better options when you finance your emergency needs such as car repair, machine repair, and so forth.

When you apply for either of the loans mentioned above, you should ensure that you quote only what you need and what you can afford because these loans carry high rate of interest if your credit report is not good.

When you are unemployed and you need funds urgently, you should generally apply for unemployed loans in Ireland. Opt for doorstep loans and text loans only when all other ways fail to help you.

Leave a Reply

Your email address will not be published. Required fields are marked *