Loans for unemployed people are designed for those who fall into one of the groups that are termed as being ‘undeserving’. The definition of this group is that the applicant does not hold a regular, monthly income and has a very precarious position in his or her job. If you are unable to secure a regular income then your only source of income will be the various short-term loans you might be eligible for. If you have had previous short-term contracts with the same company, then there might be better chances of getting a new contract with another company. In this case, you can repay your loan early (usually within the agreed deadlines) and get a fresh start. Find out more
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When you go in for any short-term loans, the lender will check your credit rating. This is done by checking your credit union or the National Home Credit Union that is used for the loan. If you have a bad credit rating, then these companies will not consider you for a loan. This is because of the risk involved in lending you money which comes from the possibility that you won’t be able to repay the amount. These companies offer loans for unemployed people so that they can give them an opportunity of improving their credit rating.
Most short-term loans are usually secured, and the lenders usually demand some kind of collateral, such as your car or a property. If you fail to repay your loan then the lender can repossess whatever it is that you have secured with your property. However, if you keep up with the payments and your credit union or your National Home Credit Union accepts them, then your credit rating can improve over time. Once you are able to secure a regular weekly payment from your new employer and you have made all of your other repayment on time, then your interest rates can come down a bit and you will find that your debt burden is a lot less.