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Unemployment Loans For Those Hurt By The Financial Crisis
Are you among the thousands that are now unemployed because of the financial crisis or other reasons? If so, you are not alone. There have been hundreds of big companies that have either gone under or downsized the number of employees that they retain due to the financial crisis that is affecting the entire globe.
Finding a suitable job in the job market that is lying in ruins from a failing economy is often tough, and for those that qualify for unemployment compensation – the amount is often too small to meet your needs. You need money now to help you through the hard months ahead, and an unemployment loan can provide the needed cash that can keep you from losing your home or defaulting on other debts, as well as provide money for you to live on and paying living expenses during your search for a new job.
Getting The Money You Need Now
An unemployment loan is usually a secured loan. Most borrowers of unemployment loans place their home or automobile up for collateral to secure the loan. Doing so will undoubtedly make the rate of interest that you are charged for your unemployment loan lower than taking out the unsecured version of this type of loan. However, for those borrowers who do not wish to risk losing their home or other property, unsecured unemployment loans are also available. You will pay higher interest, but you will not be putting your property on the line if you should be unable to repay the lender.
To improve your chances of receiving an unsecured unemployment loan, you may be asked to apply alongside a cosigner who has good credit and is willing to stand good for the payment if you do not fulfill the terms of your loan agreement. Having a cosigner is not always necessary, however, but is a good idea to make sure that you are approved.
Get Approved For Up To $25,000 Today
You can ask for any amount that you need when you take out your unemployment loan. A good idea to determine the amount you need is to make a budget of basic living expenses for a six month period – and then add a padding of 25%. This will ensure that you have enough money to last you at least for necessities until you can get another job. Most unemployment loans begin at around $2000 and go up to $25,000 or more, depending on your credit history and anticipated ability to repay the lender. Be certain to borrow only what you truly need as this is a debt that will be facing you when you return to work. You do not want to overextend yourself by adding on more debt that you can repay comfortably.
With most lenders, you can defer payment for several months on your unemployment loan. However, if at all possible, begin repaying the lender immediately. This will reduce the amount of time that you take paying off your unemployment loan, and also cost you less in interest charges.
Online Savings On Unemployment Loans
Online lenders typically offer great rates on unemployment loans due to stiff competition on the Internet between financial institutions and banks. Further, you will be able to apply from the privacy and comfort of your own home and receive your money electronically delivered in minutes to your bank account.
No Collateral Loans For People With Bad Credit?
Many wonder whether it is possible for someone with bad credit to obtain financing without collateral. Truth is that for those with bad credit, secured loans are the best choice since the risk that bad credit implies is compensated by the guarantee secured loans include. Thus the chances of approval are increased by applying for secured loans. Yet it is possible to obtain unsecured loans with bad credit if you know where to look.
The key to obtaining unsecured financing with bad credit is to reduce the risk that lending to you implies either by improving your credit or by offering another kind of guarantee of repayment. In any case, it is also essential that you know where to look as traditional finance sources seldom deal with loans for people with bad credit, let alone unsecured loans.
Risk Reduction Explained
Unsecured loans have harsher credit requirements for approval due to the fact that there is no collateral guaranteeing repayment of the loan and thus, the lender is taking a higher risk by lending the money. Thats why it is important to reduce the risk implied in the financial transaction to guarantee both approval and advantageous loan terms.
The most effective way to obtain approval that will also have long time benefits is to pursue a credit improvement program. Avoiding late payments and missed payments for a period of time of no less than six months can do a lot towards improving your credit. However, when time is not available and you need financing there are other ways to obtain approval even with bad credit.
No Collateral Guarantee Of Repayment
As explained above, some form of guarantee of repayment is needed to reduce the risk implied on unsecured lending in order to compensate for the bad credit of the applicant. And given that these loans are unsecured and no collateral is available, a non-collateral guarantee of repayment will be needed in order to boost approval chances.
The best alternative to collateral is thus, applying with the aid of a co-signer that features a good credit history on the credit report. A co-signer is obliged to the repayment of the loan just like the main borrower and in the event of default, he would be forced to continue repayment or the lender is entitled to take legal action against him also.
Non Traditional Lenders
Seldom banks and traditional lenders will be willing to consider approving an unsecured loan for a bad credit applicant. Thus, in order to obtain finance you will have to resort to non traditional lenders you can find by doing a quick search on the net for bad credit unsecured loans. Just remember to consult several lenders so as to compare their loans.
You can always request loan quotes or contact them informally making sure that your credit report is not pulled in order to avoid too many credit verifications that might affect your credit score negatively. Once you have decided which lender you want to work with, fill the online application or contact them telephonically in order to apply for your desired loan.