Getting loans for unemployed people on benefits may seem impossible but if you know what is available to you then you can do it without too much stress. Getting finance when you are unemployed can be extremely painful, especially because it is quite common to also have a poor credit rating at the same time. Having a poor credit rating prevents you from getting most normal types of finance since the lenders simply do not want to take on the risk that you represent. However, some finance companies and the government realise that it is important for people with poor finances to be able to get a loan as well. As such, they offer some financial products that are suited to people without gainful employment and whom have a poor credit rating.
The Best Loans For Unemployed People On Benefits – Government Guaranteed Consolidation Loans
The government recognises that some people simply may not be able to manage excessive debt that is spread out into multiple payments. As such they offer secured loans to consolidate personal loans. These consolidation loans are usually handled by banks with government support and they are designed to roll all of your debt into one simple to manage loan. This is a good option if your main struggle is debt management, as this means you only have one repayment to remember. Another benefit to this is that you only have one set of account keeping fees to pay, and this can end up saving you quite a bit of money over time.
The Best Loans For Unemployed People On Benefits – Fast Cash Payday Loans Online and Offline
It is possible to take advantage of a fast cash payday loan online or offline, even if you don’t have a job and even if your credit rating is terrible. Quick small cash loans, also known as quick cash payday loans are essentially a small, high interest loan that is given out according to your income. As such, your credit rating is not even checked as all they look at is your regular income, and this can even include a government cheque. Keep in mind that these loans are quite expensive, but they do make a good option if you need to raise a small chunk of cash within 24-48 hours. Payday loans are quick and easy and provides another option for quick cash loans for unemployed people on benefits.
The Best Loans For Unemployed People On Benefits – Welfare Advance Loans
One of the easiest to obtain and least risky forms of finance for someone who is unemployed is a welfare advance loan. If you are on some sort of government support then you may very well have the option to obtain a welfare loan. Sometimes these are just straight up low interest loans that you repay over time but other times these are advances on your regular government cheques. In the case of the latter you are simply given a few weeks in advance and from then on a percentage is taken out of your normal cheque to pay for the advance. These are frequently available around christmas time as well, which can be a great way to still enjoy the holiday period with your family without the added stress of a credit card bill.
The Best Loans For Unemployed People On Benefits – Credit Cards
Your final option if you need cash quickly is through a credit rating. However, this is not recommended unless you are in extremely desperate times. This is because credit cards have the highest monthly interest rate on any type of finance and they can cause your debt to quickly spiral out of control. If you already have a poor credit rating then you likely already know the dangers that a credit card presents. However, they cannot be ignored in terms of availability and ease of use in an emergency. It is recommended that you have a credit card that you keep locked away, only for use in emergencies. Keeping one with you every day is a huge temptation and even a few impulse purchases can cause massive damage to your finances. If you can use credit cards responsibly then it provides another option for getting a loan when you’re unemployed and on benefits.
The Best Loans For Unemployed People On Benefits – Charity Loans
These types of finance are less common but they are an option for some people. Some charities offer very low or no interest loans to people that they are assisting. While these are fantastic, they are very difficult to obtain. Usually, in order to get on you must either already be tied to the charity or you must be on welfare and have some other element of need in your situation.