It is not easy to make a financial decision after you leave or lose a job. Every penny is important and just one wrong decision can make you invite regret. Amongst the many expenses, your finances can easily go off the track. The fear of pending obligations as well as degrade in credit score can become huge.
Before things get worst, taking unemployed loans can be a good decision. However, the haste to get the money should not make you overlook some required qualities of the lender.
Here are the 5 points that tell what you should keep in notice while choosing a lending company.
- Experience proves credibility
The old players of the finance industry gain the trust of the borrowers because of their long existence in the market. Whichever lender stays for long, becomes a brand and people consider it a safe name to rely on. Try to find out the established lending companies. They have a good grip on the problems of the fund seekers and due to their rich experience, they have ensured expertise.
- Response time
Of course, this is the most important part as during unemployment you are always in urgent needs of money. A lender that does not respond to your questions or has a lingering application procedure can never solve you purpose. The chosen option should respond to your query and application in the least possible time. Your obligations cannot wait and timely money is required when the chaos is hovering over you.
- Interest rates
These are decisive in the total cost of a loan product. The lower the numbers on this part, the better and lighter is the loan deal. Make sure you find the customised deals that facilitate funds at a lower cost. By the way, the rate quote you see on the website may vary. The figures shown are the generalised interests rates and may not apply to the loan amount you apply for.
The final deal depends on the varied factors.
- Your credit score
- The type of loan
- Recent financial behaviour
- APR (including all the fees and charges)
On the point of credit score, you may have a doubt on approval if your credit score is poor. However, it is important to clarify here that there are choices of loans for unemployed people with bad credit. Besides, due to small tenure no guarantor is required. Direct lenders in the UK provide such loans with personalised pricing.
- Easy documentation
This has two aspects –
- For you, the documentation procedure should not be complicated.
- The loan deal should be accompanied with the legal documentations describing what you are actually responsible for. Also, what commitments lender has made to you.
The easier the documentation process the faster you get the funds. Forget not to read carefully each and every clause to detect and make sure that there is no tricky line in small fonts.
- Flexibility in repayments
Every borrower is worried about repayments. For sure, you are not the exception and expect to have a flexible repayment plan. You need to ensure that the lender is not stringent in its policies on this matter.
Do not forget to pay heed to the following points
- Is the lender ready to accept a payment back in case you miss to pay the instalment in any month?
- Are there any late payments or late fees?
- What is the exit fee policy?
- Is there any early repayment cost?
There should be no confusions and unanswered questions on the deal of unemployed loans you choose. Once you sign the agreement and receive funds in your account, nothing can be done. Rational thinking, which is not backed by hasty actions, prevents mistakes on financial decisions.