Are you unemployed and looking for a loan? Naturally, it will be more difficult to secure a loan if you are unemployed, but in many cases, it is still possible. Although traditional lenders such as banks often have stringent lending criteria, with many requiring borrowers to earn a minimum amount every month, there are other lenders available who are willing to consider loans for unemployed people.
Can I get a loan if I am unemployed?
As with any loan, the main criterion for approval is that you are able to keep up with the loan repayments. Those without an income from employment will have to prove that they are able to repay their loan comfortably, and you may be offered a higher interest rate from a lender due to the increased risk.
Payday loans tend to be one of the most expensive forms of borrowing, so they are not intended to be used by those who are unemployed. However, it may be possible to borrow an amount that can still be repaid comfortably if you are in receipt of certain benefits or if you have savings. As with all loans, you should consider whether borrowing is the right choice for your individual situation.
When you complete a loan application through our website, your details will be matched to lenders that are most likely to approve your application. There are some lenders on our panel which will consider loans for unemployed people, and we work hard to guide our borrowers to those who are most likely to approve their applications.
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Can I get a loan if I claim benefits?
Yes, it may be possible to obtain a loan if you receive long-term benefits. For example, more permanent benefit payments such as Disability Living Allowance or pension payments, which are likely to remain stable for the duration of the loan agreement, may be considered. Alternatively, if you are currently unemployed but have sufficient savings available to repay your loan, a lender may approve your loan application on this basis.
Where can I get a loan if I have a bad credit score?
Many individuals struggle to borrow if they have a bad credit score, and while your credit history is important, our lenders consider many factors when assessing loan applications. If you can demonstrate that you have the means to repay your loan, such as long-term benefit payments or savings, and that the loan is affordable, you may be approved. Many of our lenders specialise in lending to those with a poor credit history, with applications considered on an individual basis.
Although there are lenders who will consider your application, it is important to borrow responsibly. If you cannot make your loan repayments, the missed or late payments will be reported to the credit reference agencies, and your credit score is likely to drop further. However, if you adhere to the loan agreement and repay your loan on time, this will create a positive impression when future potential lenders view your credit file.