At the bank, a person without permanent employment can count on financial support. Fortunately, it is completely different at loan companies. So if you need cash, but you can’t show any documentary evidence of regular income, their offer is for you. See what payday loans institutions are able to offer to the unemployed.
Each loan company has a commitment to check the customer’s creditworthiness. So if you lie about your professional status in your loan application, the truth will quickly see the light of the day. It is better to be admitted to being unemployed from the beginning. Such a declaration does not affect the chances of a loan. Although your creditworthiness is insufficient, loan companies are willing to lend you up to twenty-five thousand dollars.
You are probably wondering why some non-bank brands are willing to support your loan application, while other lenders reject it at the outset. Well, these institutions use additional methods to protect the company against possible loss of funds borrowed to you. By making money available to a person without a job, the lender bears considerable risk.
And what exactly do the lenders use? Most often they are:
- loan surety by a third party,
- choice of institutional guarantor,
- secured loan
Loan with a surety
When choosing such an offer, you must indicate a person who, in case of problems with paying off the loan, will bear the burden of paying the liability. In other words, if you do not pay back the loan or installment on time, the company will come for a guarantee. Unfortunately, the role of the girrant in our society is not very well associated. Therefore, finding the right person can be a challenge. This does not mean, however, that it is completely impossible.
Loan with an institutional guarantor
If you don’t find a guarantor on your own, the loan company can do it for you. Some non-bank institutions cooperate with other companies that can guarantee your loan. In the event of repayment problems, the guarantor will compensate your debt to the original lender. From this point on, you will owe money to your guarantor before you set new repayment terms.
If you are looking for a loan for the unemployed, a loan against e.g. a car may be the right solution. Covered Item
in this case, it provides collateral for the lender – if you stop servicing your commitment, the lending company will be able to take over the debt.
Of course, in this situation, everything must be done according to the law. So if, for example, you take a car loan, before you receive money you must establish a loan company as a co-owner of your vehicle and make an appropriate note in the registration certificate. Unfortunately, this type of loan involves a number of additional formalities. We write more about this in the article entitled ” Car loans – an alternative to payday loans? “.
Loan for the unemployed – is it worth it?
People without permanent employment who need to borrow money quickly have three options. However, before you reach for any of the proposed solutions, it is worth considering whether this is actually the best solution. Sooner or later you will have to pay back the loan. So think about where you can get the appropriate resources for.
Borrow only when you are sure that your loan repayment will be one hundred percent real. The “somehow it will” strategy is very risky and can lead to even unpleasant financial consequences. So be honest with yourself and soberly evaluate your perspectives. Only then will the borrowing money be completely secure.