Which Is A Reliable Source Of Credit for Unemployed with Bad Credit?
Loan store provides instant solutions to financial troubles for the unemployed with bad credit and no guarantor.
All of us need money at some point or the other to fulfil our needs and wants. Money cannot buy happiness. Thoroughly agreed, but it sure can make our lives more comfortable and smooth. We all need money to afford the basic amenities required for a living. Not all of us are fortunate to be born in a wealthy family or to have a job that pays well. Some of us do not even have job security. Unemployment also prevails, the main reasons being competition and inadequacy of jobs. Even for starting up a business, a minimum investment fund is required. Not everybody can procure satiable resources for these tasks. An answer to these problems is - loans.
For people who are unemployed with bad credit and no guarantor, even getting a loan is also difficult. People used to borrow money from times immemorial. Earlier, there were no rules, regulations, terms of credit, types of loans, etc. It was simple. A borrower would borrow an amount for a fixed period and then return it to the lender along with interest within the stipulated time duration. Nowadays, there are institutions that have made an industry out of borrowing and lending. These are nothing but banks.
But, banks do not give loans to every person who requires them. Before handing out the money, a tedious process is undertaken to ensure risk minimisation and guaranteed repayment. For this, they consider and review the applicant’s credit history, documents, bill payments, salary slips, and income, etc. Only after all of this is done, they determine whether to lend money or not and if to lend money, then how much and for what time.
Not everybody can fulfil all the provisions in the eligibility criteria. Hence, most of them are denied loans and their application is rejected. There are many reasons for this. The applicant can be rejected on the grounds of poor credit record, the absence of a guarantor, no proper documents, etc.
Unemployed people, poor people, and uneducated people are the ones who face drawbacks of the traditional loan systems. But, a few of the direct lenders provide unsecured loans to such people with no collateral, credit check or guarantor. This is helpful in uplifting and supporting the weaker sections of the society.
A bad credit score reflects the financial reputation and the nature of financial activities undertaken in the past. It can have a huge impact on a person’s financial deals and loan activities. Hence, building a good credit score is of utmost importance. A person’s credit score can worsen if he or she has failed to repay a loan or bills due to bankruptcy, sudden losses, or negligence. So, to rebuild a credit score also these unsecured loans by direct lenders can be helpful.
Unemployed people are not eligible to apply for formal credit in high standard, government-run financial institutions as they purely focus on risk minimisation and therefore have a lengthy verification process. Personal assets also have to be submitted to receive a loan. But, direct lenders provide loans otherwise too. Hence, for unemployed people, especially students and senior citizens, it is helpful. They do not have to undergo the sultry bank processes. They can avail easy loans with an online application process staking no personal assets or producing a guarantor.
Apart from this, getting such loans is easier and faster. We can apply for instant loans in case of emergency situations in which case, traditional and formal sources of credit prove to be inefficient. Doorstep loans are also available to make the entire process more client-friendly. Payday loans are loans for a short period and the borrower can choose the time duration. Unsecured loans give credit with no verification, credit history, submission of salary slips, etc. There are many nuances when such loans have helped people overcome difficult situations.
Some demerits of unsecured loans are that they charge a comparatively higher rate of interest. We must do repayment on time, otherwise, the borrower might fall into a vicious debt-trap. Hence, one must consider affordability, need and terms and conditions before taking a loan.