Tag Archives: good credit
Unemployed Loans – Timely Loan For Cash Requirements
When there is no job in hands, then it becomes harder to meet your cash needs for regular purposes or for starting a small business to support yourself. Unemployed loans may be a good option in such circumstances. Even if you have lost a job recently, these loans can help you in borrowing timely cash help.
However, the applicants should prove their repayment capability in order to get approval from the lenders. Tell the lenders the way you are going to have the money for timely repaying the loan installments.
It is advisable to take unemployed loans with a co-signer who has a good credit history for instant approval. The co-signer may be your parent or anyone who is willing to take responsibility to repay the loan. The co-signer will also be useful in borrowing the money at comparatively lower rate of interest.
These loans are available in secured or unsecured options. The secured loan requires you to borrow against a vehicle, home or any other valuable property as collateral. Such a loan comes at low rate of interest because of collateral. Depending on value of collateral, you can borrow up to £75000 or less for its repayment in 5 to 30 years.
The unsecured unemployed loans are given without collateral. But you will be approved smaller amount ranging from £1000 to £15000 for a shorter repayment duration ranging from few months to 10 years. But such loans carry higher interest rates.
Your bad credit history of late payments, defaults and CCJs is well taken care of if you can prove your repayment capability and if you take the loan along with a co-signer having a good credit history.
Compare as many offers of unemployed loans on Internet as the online offers of the loans are generally less expensive due to intense competition amongst the lenders. Make sure that you borrow the money to repay it on the due date of the installments.
Should I be taking out a loan?
A loan, if done under the right circumstances and for the right reasons, can be a good thing.
Heres why:
If you take out a loan and you are diligent when it comes to making your monthly repayments, you will establish whats known as a good credit history. Your credit history is established based on the number of credit accounts you have. An account could include a clothing account at a retail outlet or a credit card from a bank.
So the answer to the question should I be taking out a loan is simple:
You should only be lending money in situations where you really need it and not to buy things that you want.
This is where the line definitely becomes blurred for a lot of people. Many people get stuck in a vicious circle of debt because they start using their credit cards for luxury items and ultimately overspend. To make matters worse, the more you spend on your credit card, the higher your credit limit goes, giving you leeway to spend even more.
A credit card can be a valuable asset if you use it in the right situation. Lets say you earn R5000 a month. R1500 of that goes toward groceries and toiletries. R2000 goes toward rent, and youve got R1500 left to save or do whatever you wish. During one particular month your car breaks down, you dont have insurance and the repairs to the vehicle are going to cost R3000.
You only have R1500 to spare- what now? Youve got your credit card right? So all you need to do is use your R1500 spending money and the R1500 you would have spent on groceries to pay for the repairs to your car. Then you use the credit card to pay for your groceries. This is an effective compromise because you will only be putting R1500 through on your credit card instead of the full R3000, so youll end up paying back less.
Why would I ever need a good credit history?
Well besides having a credit card to bail you out of situations like the one described above, having a good credit history comes in handy when you make one of the biggest purchasing decisions of your life -buying a house. Houses are expensive, which means that youll have to lend from the bank. In the last couple of years lending criteria have become stringent, making it much harder for the average person to take out a loan.
Banks take a number of factors into consideration when assessing loan applications, including monthly income and credit history. If the bank can see that youve made an effort to pay your account on time each month theres a much greater chance that theyll approve your loan.