The only change unemployment brings in your cash portfolio is on the inflows; Outflows remain constant and so is the negative impact of job loss. To cut down all the expenses is not possible and its reduction majorly depends on your personal will power and zeal to save during this hard time.
All of us have a pile of credit cards and common loan installments to fund every month including the ones related to student loans, car loans, home loan, insurance, medical claims and many more. When you have a family to support and a few of such expenses every month, to search for a long term loans in the absence of income is more than a necessity.
Your income to debt ratio is one of the primary factors considered by lenders before extending a loan. In the absence of monthly salary cheque, it is unlikely that a mainstream lender would be interested in offering a loan to a highly risky borrower like you. Those who would offer will naturally ask for exorbitant rates.
When you seek loans for unemployed, you need to come back to the basics. As common rule, build your credit history for loans. Anyone would refute this suggestion by saying it is not practical to build history without an income. Well, it is no secret that good habits never die. If you were diligent in repaying your loans, your good history is part of your loan profile.
By roping in services of a reliable loan broker at free of cost, you can search for legitimate lenders who are willing to extend credit to people on benefits on a good faith. These lenders offer better deals than the main stream lenders. Besides a little of home work from your side could save you more.
Let’s explore the ways to improve your credit worth despite the joblessness.
Being cash strapped, your credit card is naturally going to be more active to meet your daily needs as you get cash back and more incentives on the usage. Herein you need to be extra cautious to not leave the fat balances unpaid. In fact try to pay your monthly bills in full and do not leave credit balance for roll back to the next cycle. This would build good score and credit worth at the same time.
Besides applying for unemployment benefits, ensure that you have filled your details on the electoral register when required.
Never apply for too many loans or cards in a short period. If you do so, it will reflect your credit appetite and would further lower your chances for loan approval.
With no income source by your side, your only USP would be to demonstrate your past repayment record and intention to pay back in full as you get the job. With a broker by your side, you can search for lenders who offer installment loans with delayed repayment plans.
When you already have debts on your account, a broker can also help you search for a long term personal loan to consolidate all the loans and lower down the cost of installment.
Besides, you can request some of your lenders to let you pay later on after you get the job. This saves your credit report and keeps your stakes intact.
As a thumb of rule, always remember to not owe more than you could afford. A debt is a liability and you should always owe the amount that you could repay at ease.