How many times have you stepped back, doubting the possibility of getting loan help with no job! It might show an uncountable digit. Your ineligibility to fulfil the job criteria might be the reason for this.
Getting a personal loan from lenders in the UK is indeed a dream for many jobless individuals. The pressure of conforming to loan repayment discourages borrowers from considering loans as an option. However, things are changing with hope from direct lenders.
A change in thought process is happening. It is helpful for those poor, unemployed souls. Now, the possibility of acceptance rises even if you manage to show any source of income.
Any form of income should be adequate to meet the repayment conditions. Then, making it to approval is not at all challenging. Furthermore, you must consult with the lender to get a clear idea about how things will take place.
You can know more about this simply by reading through this blog also.
Which factors can enhance your chances?
Of course, some factors can amplify the possibility of getting loans during unemployment. Following them, you can make sure of guaranteed loans for the unemployed offered by direct lenders.
These are:
Credit rating
Your credit score should not disappoint the lender. These days, scores ranging between fair and bad do not fall in the risky range, according to some direct lenders.
If your scores are somewhat around the upper limit, you will get weightage for this. However, it does not confirm you will surely get loans based on it only. In fact, a combination of factors works to strengthen the chances of approval.
Earning
It is by far the most critical parameter that can totally change the game. For direct lenders, earning sources other than a stable job would work. The lender will be happy if you earn regardless of what ways you earn.
Your income should suffice the repayment payment. There is no problem if you do a part-time job to continue your job. You can be a freelancer working from home after resigning from the job.
It is because you are responsible for paying back loans. You must earn money via any means. It should be enough to support loan repayments.
Debt-to-income ratio
It shows the amount of debt you are holding against your current income. Lenders have a special preference for a loan application that shows the ratio to be below 36%. It indicates your financial situation is in control. Most importantly, you have the potential to repay within the specified limit.
How can you work on improving your chances?
Once you are aware of the factors that can play a critical role in enhancing your chances, you must start working on them.
Try out ways to upgrade your scores
Having fair credit scores facilitates borrowing at more affordable rates. Therefore, if your credit scores are bad, try hard to upgrade your scores.
There are different strategies you can implement like:
· Formulate a budget to follow
· Spend within your limit
· Pay off pending dues as early as possible
· Skip borrowing if not urgent
· Amplify income means
Consolidate debts
To downsize the pile of debts, you must count upon effective debt consolidation financial solutions. You can opt for either snowball or avalanche method to consolidate debts.
Go for whichever option suits you. It will help you cut back on the level of debt. It will also show positive results in your debt-to-income ratio.
Add up sources of income
If income is the biggest problem that is stopping you from getting loans, searching for income streams is the best thing to do.
You will be receiving benefits for being unemployed. If it is not enough, look for some side income jobs. It will help in generating an additional source of income.
Apart from being able to have a firm grip on the personal fund requirement, this extra earning will also improve your chances of getting loans.
You do not have to compromise the time allotted for self-development and job search. You can opt to work in your free time after completing all these tasks.
The bottom line
Unemployment itself is a challenging phase. The worst thing is that it invites further complications in life. The absence of a fixed income source can feel like a curse.
You must consider other ways of income to keep up with expenses. Such a decision will work in your favour when you look for additional cash assistance. The lender will not see your financial condition as a potential trap.
It can hold true if you are applying with direct lenders. They are ready to accept your application if your income source makes sure about repayment. It is because getting the money back is the primary concern of every lender.
Keep the vital facets in mind discussed in this blog while searching for loans after losing a job. It will be helpful for you.
