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Short Term Loans For Unemployed
Being jobless, whether intended or not, is disheartening especially if there is a financial obligation. Meanwhile, the number one solution to have money is to look for a job, however, how can you find a job if you have no money to start with? While applying for a job can be done without spending cash, going for an interview is different. Of course, you need fund your fare, food, or other daily expenses – in short, you need money.
Luckily, the number of lenders is growing and some of them are willing to provide short term unemployed loans. This is beneficial when you need a helping hand during tough times. That way, you can easily go on with your job search.
Pros And Cons Of Unsecured Unemployment Loans
They say, “nobody is perfect” and so are short term loans for unemployed. This loan has its own good and bad side that borrowers should look at before submitting their application. It is known as a fast and easy financial solution and at the same time, it is popular for one sad reason. Unemployment loans carry tolerable interest rates, however, it is still higher compared to the secured type. Lenders impose that condition because of one obvious reason – granting jobless individuals are risky because their income is not stable. The interest rate is used to offset the risk especially because borrowers are not required to pledge collateral. In addition, the loan does not provide a large sum, therefore, it can’t suffice any long-term financial obligation. The amount, which needs to be settled in less than a month, is pretty small but it’s enough to cover minor and immediate expenses.
Loans for unemployed often have strict criteria and more often than not, the lenders will base on the loan seeker’s criteria. No guarantor or collateral is demanded, however, bad credit borrowers may have a hard time attaining the money they need. On the other hand, those who have been responsible enough to get high credit remarks have higher chance to get approval. Nevertheless, those who have poor credit rating can still give their application a chance, however, they should take note that the loan is more expensive.
Given that the loan is extremely expensive and helpful at the same time, the borrower should spend enough time to study the loan. First and foremost, you should decide whether the loan is the best solution or not or if it’s really necessary to have it. After all, the interest rate is very high and the payoff time is a quick turnaround. Jumping in without thinking about its consequence may only lead to more trouble.
If you think that this loan is your last resort to get immediate cash, just be sure to take responsibility. Prioritize the loan and be sure to settle it on time. Avoid using the money for leisure purposes and expensive habits and once you’re employed, ensure that the paycheck will be used to compensate for it. Focus on your spending habit to avoid being in the same situation again.
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