Top tips for unemployed loan applicants

Top tips for unemployed loan applicants

Making yourself attractive to lenders

Obtaining a loan when you're unemployed can be a daunting prospect but you do have options and there are still deals to be had. The key is to make yourself as financially attractive as possible to lenders. To point you in the right direction here's our top tips for unemployed loan applicants:

1: Do you really need the loan?

If you're unemployed, it is likely that you have to think about your incomings and outgoings on a regular basis. Is the need for extra finances vital or is it for something that maybe isn't necessary?

2: Compare your options

Because you are unemployed, you are effectively classed as a higher risk and as such interest rates may be a lot higher. However, this may be a small price to pay if you are in desperate need of the loan. However, you should still do your homework and shop around to find the best interest rates and always ensure that you can meet the repayments.

3: If you're struggling, ask for help

If you are struggling to keep up with important bills then borrowing more is not the answer. If financial matters are a concern, please reach out to someone who can help.

4: Don't make multiple applications in a short space of time

A lot of credit searches within a short space of time will have a negative impact on your credit file. Use our Eligibility Checker tool to find the best loan for your specific circumstances and get it right first time. Compare:

5: Lender's acceptance criteria

Make sure you meet the lender's criteria before you apply. If not you will be declined. Read more:

6: Check your credit file

This can easily be done for free by visiting sites such as Clearscore. By understanding your credit score you will know where you stand and how best to approach your search. Read more:

7: Register on the electoral roll

Ensure you are on the electoral register at your current address. This is a relatively simple process and indicates some degree of stability to potential lenders.

8: Guarantor loans

If you have a suitable guarantor, it's may be worth considering a guarantor loan.You may be able to obtain a slightly better interest rate by going down this route. Do beware guarantor loans are for a very specific set of circumstances. If you fail to meet your repayments you will need to consider this carefully before taking out this type of loan.

Find guarantor loans

Have bad credit? Have a look at the full range of guarantor loans available and compare your options using a Choose Wisely comparison table.

Written by Mark
Published on 6th July 2017
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