Loans for Unemployed
Many people wake up every day worried about how to pay for their bills because they are unemployed. The stress of not knowing where you will get enough money to cover your expenses can be overwhelming emotionally and even physically. Fortunately there are loans for unemployed people to help with cash flow along with financial resources to help you make it until you find steady income.
One tool that is available is Jobseeker’s Allowance. The tool provides access to a calculator and a list of benefits you could qualify for. You can qualify for more than one benefit at a time, so make sure to check out each one to determine whether you could get help.
Some of the unemployment benefits you may qualify for include (Loans further below):
Jobseeker’s Allowance: JSA is used to help individuals actively looking for work. To qualify you must be at least 18 years old, but younger than your state pension age and be available and able to work. The amount of money you will qualify for depends on your circumstances (including whether you have children or not).
This benefit requires that you complete certain tasks like making a work plan, working with a coach and fulfilling other commitments like education, if necessary. In addition, you are required to “check in” at the JobCentre Office every two weeks. You can lose your benefits if you don’t fulfill commitments.
When the time comes for you to transition from benefits to work, you can receive support to help make the transition easier. Take advantage of classes that offer job training, volunteering and educational support. This classes will make it easier for you to qualify and look for better paying jobs.
Crisis Loans: These are currently only available in Northern Ireland. The loans are designed to help pay bills and cover emergency expenses. The money is a loan so you must repay it. You can find out more information about applying for this loan here.
Income Support: Income support is offered to individuals or couples who have low or no income. You must be working less than 16 hours per week and you cannot be signed on as unemployed. Your circumstances will determine how much money you qualify for through this program. Generally single individuals with no children between qualify for up to £73.10. Single parents qualify for up to £73.10 per week. Couples may qualify for up to £114.85 per week.
Higher rates are typically given to those who have a child. Benefits are distributed every two weeks and can be deposited into a personal bank account. Age impacts the amount of money you qualify for.
If you have a low income or no income and you have children, you may be able to claim the Child Tax Credit.
Loans for unemployed
If you are unemployed and need a personal loan to help cover emergency expenses, it can be difficult to get the help you need. Because lenders check your income, many are going to be unwilling to loan you money. It is possible to qualify for some types of loans, including pay day loans.
Pay day loans are tricky. Fortunately there is some legislation, but not much. Interest rates on these loans can be up to 300 percent. Yes, you read that right 300 percent. In addition, you are likely to have to pay a fee for taking out the money.
These types of loans are far from ideal, in fact most financial experts tell you that a pay day loan is one of the worst things you can do for your credit. When you are up against a wall, it may not feel very important to you. If you do opt to take out a payday loan, try to pay it back as quickly as possible to avoid major fees for paying it late or rolling it over.
A safer (and most always cheaper) alternative to getting a payday loan is to have a friend or family member cosign a personal loan. While this method has drawbacks of its own, you are going to pay far less money in the long run.
The biggest drawback for a cosigner is that it can put a strain on a relationship. Having someone cosign a loan for you is only one step from actually borrowing cash from them outright. If you cannot pay your loan back, the person who cosigns with you will be on the hook for the balance of the loan. This can put a major wedge in your relationship. You should only ask someone to cosign for a loan if you trust them and you know that you will be able to make all of your loan payments.
If you want to attempt to apply for a loan through a specialist that offers loans to the unemployed, you will be required to meet several requirements. To increase your chances of being approved for a loan through one of these programs you need to improve your credit history. Your credit history can be dinged by late payments, bankruptcies and foreclosures.
Several ways to improve your chances to get approved for a loan when you are unemployed include:
Making payments on time: Make sure all of your bills are paid on time and reduce your debt. If you are unemployed and have a lot of debt payments you are not likely to get approved.
Space out your applications: Applying for a lot of loans and credit cards at one time can be damaging to your credit. Instead, space out applications for every few months. When lenders look at your credit and see a lot of applications for loans, they may infer that you are a bad candidate for loans because no one else wants to give you cash either.
Unemployment is a stressful time for anyone, finding the right loans and financial assistance can help relieve the stress until you are able to get back on your feet again. Take time to do a little research so you can rest easy as you search for new employment.