This article is sponsored by Cash On Your Mobile
If you are on a low income but you need some money for something urgent (medical bills, a broken down appliance, or a broken vehicle), then you will find that it is very hard to access credit. Most lenders will only give money to people if they know that the person is going to be able to pay the loan back in a timely fashion. If you don’t have a job, then you’re not going to be able to pay your loan back! It’s as simple as that. At least in their eyes.
There are some lenders that understand that even unemployed people have income – perhaps from retirement, or from health insurance policies, or even just unemployment payments. If you have minimal outgoings and are smart with your money, then you should be able to pay back the loan.
You’ll find it easier to borrow money if your credit rating is generally OK. But, if your credit rating is poor you might still be able to access some credit. There are payday lenders that will give cash loans to anyone who can prove (with things like bank statements) that they are able to pay back what they have borrowed.
These lenders will give you cash straight into your bank account within an hour of application. They charge high interest rates, and they are only intended for short term borrowing of relatively small amounts of money, but they offer an invaluable service.
You will find that if you go to a payday loan company and discuss your options with them, you will be able to borrow for something that has an important use – such as to repair your car so you can go to job interviews. You might struggle to borrow for birthday presents or for a holiday – because many lenders are cautious about discretionary borrowing from people who have poor credit – but you do have options.
Another thing that you can do if you have no job, but some income, is find a guarantor who will sign off on a loan application for you. This must be someone who trusts you and who is willing to financially link themselves to you. The guarantor will pay your loan back if you default. There are many lenders that will consider guarantor loans, and they will credit check both you and the person who is acting as a guarantor for you.
Finally, try credit unions. These are friendly local banking organisations that will be more receptive towards lending money to people in the area they operate in – especially if those people are already customers of the union with some savings. Credit unions are the best option, really, because they usually offer fairly generous interest rates compared to private lenders. They will also be more willing to work with you if you end up in financial difficulties and struggle to pay back the loan – but you should not count on this. Only borrow what you need, and can pay back.
