There are some criteria that you have to follow:
1) Regular Income: you have to show some income or source of income document like bank statements so that you can repay the loans.
2) Credit History: Most of the loans depends on Credit history. You have to show positive Credit history report. If there any negative point, then it's difficult to get a loan.
3) Credit Score: Credit score is also important for getting loans. your credit score should be in a good score. If you don’t know your credit score you can check in various websites available on the internet.
It can be difficult to get credit, especially if you are unemployed. Few lenders offer loans for unemployed as they are nervous about your ability to repay the loan without a steady income. Most lenders want to see a consistent income before approving your loan. So what do you do if you are unemployed and are in need of money?
The problem is, pending bills and mounting debts are in a mood to become huge and monstrous day by day. Your freedom in finances is difficult to exist for long. The loans for unemployed may help you get rid of this big mess of money.
Yes, the unemployment is not a permanent situation and sooner or later you are sure to get the job. By that time loans can help you spend the days with less or no hassle in finances.
What you need to do to apply for loans for unemployed?
Being an unemployed you need to be more on your toes to get approved for the loan. The specialized online lending has ways to help you but for that, your part should be clear and free from flaws.
Prepare recent Income proof
Obviously currently you have no income and that means there can be no proof of current income. But recently you were doing job and the salary slip from your last employer can certainly help you qualify for the loan. Besides this, if you have any kind of proof of income then forget not to mention it in the application form. To manage the financial mess may be you are doing any part-time or freelance job; this can give a great backing to your loan application.
Avoid scattered gun approach while applying
Sending loan applications to many lenders at the same time is not a wise decision. Multiple applications cause many credit checks, which gives sundry search footprints on your credit record. The lenders assume that you have an intense need of funds and may be your financial situation is not good. How such a borrower can pay the loan on time? This thinking makes them act reluctant towards the applicant and rejection becomes the most certain incident to happen.
Stay loyal to the lender
This is an important quality to have. There are many lenders in the loan market, once you choose a lender make sure that you follow its guidelines with utmost sincerity. Follow the rules and cooperate for every formality. Already the lending has become advanced after its merge with Fin Tech and not much is required in the name of loan formalities. Paperless procedures make the journey from application to approval, easy and smooth.
Do Deep Research
Go deep as much as possible. For an unemployed it is necessary to research well and find out a genuine deal. There may be fake names that may ask you to give upfront fee, hidden fee etc. in the name of helping an unemployed like you. Do not pick them as lenders should not take any such fee. Also, forget not to compare. APR, repayment plans are the two important factors on which you can compare the lenders. Use loan calculators to know the approximate rate quote and apply only if you are sure about your repayment capacity.
Do you have very bad credit? Oh, try to arrange a guarantor or collateral
In case your financial mess has pushed you to the extreme level of very bad credit, then situation may become a little difficult. Certainly, the loans for unemployed are obligation-free but in case of worst credit situation, you need to do more efforts. Apply for the loan but back it with a guarantor or collateral. The lenders need to have some reason to rely on the creditworthiness of the applicant. In the absence of important factor of good credit rating, there should be something to compensate that. Guarantor or collateral can fill the gap. Make sure that the collateral is equal in value of the loan amount. If possible, give priority to the guarantor.
You can explore the faster small term loans if you have a new job
A new offer letter in your hand can really change the game. You can apply for the loans that are quite speedy. Surely, you are familiar with the payday loans for unemployed by direct lenders. These are fast loans with approval decision in a few seconds and disbursal in a few minutes.
Every step you take in financial decisions is critical during unemployment. The lenders can provide funds but to qualify for the loan, you need to do everything correct. Once the approval comes and the funds reach to your account, forget not to stay sincere in repayments. Good financial behaviour always brings big benefits in the future.