“One can never be fully prepared for the most unexpected events in life.”. Yes, and being laid off is one of those unfortunate times. It does not give one time to prepare and manage finances. It is the reason this sudden event disturbs the budget and finances drastically. One finds it challenging to determine the most important expenses suddenly.
Moreover, it takes one good time to digest the fact that he is unemployed now, and now one must re-adjust the budget. It is where financial facilities like very bad credit loans help. Individuals with minimal pay and no consistent job often suffer from credit issues. Thus, getting quick financial help becomes challenging there.
Most mainstream lenders prioritise credit and income standing. However, some lenders deal exceptionally with poor or bad credit profiles. They explore the options and the probability for the person to get the needed cash help with little complications. Thus, if you feel an urgent need for cash in times like these, you can rely upon very bad credit loans.
What do very bad credit loans imply?
Very bad credit or poor credit loans are a financial facility exceptionally for individuals with too many debts and penalties in the credit profile. It helps individuals get the minimal cash to finance immediate requirements. Generally, these loans are unsecured. It implies you can get it, providing no asset as collateral on the loan.
As these are unsecured loans, the interest charges stay competitive here. You can qualify for an amount up to £5000 by revealing your affordability and income. Personal income is the primary criterion to qualify here. If you borrow a lower amount than your income, you may get it on affordable terms.
How do poor credit loans help in the unemployment phase?
It is clear from the above that it is a ray of hope for individuals with low credit scores. You can get a bare minimum amount to finance your short-term needs. However, hold a part-time income apart from benefits to qualify.
Apart from that, it helps you sort out unique circumstances as an unemployed. Moreover, as an eager job-seeker, you face limitless challenges like- transportation costs, rent, updating skills, etc. It requires constant cash flow to grab a new job opportunity. Thus, very bad credit loans may help you here. Let’s see how.
1) Support small expenses unless you get benefits
It is one of the most crucial phases of an unemployed person. Well, government benefits like a jobseeker’s allowance are exceptionally important for the unemployed, and qualifying and money credit takes time.
Thus, you need financial cover to meet your short-term requirements until your first income from benefits. You can borrow one by revealing the slip of the benefits applied.
2) Pay credit card bills without a guarantor
Unemployment does not even grant you the time to pay the pending debts. Do not worry, and you can use these poor credit loans to get debt-free. Calculate the total debt on credit cards and pay it off. You can either pay individually or consolidate the credit card debt. The second option is better as it helps your credit score.
Moreover, what could be better than getting very bad credit loans with no guarantor from a direct lender instantly? It is a relief for those who want to manage their finances independently or not involve a loved one in money matters. Additionally, avoiding a third person from the scene becomes important if you want to improve credit and re-track finances.
3) Make rental payments
Rent is the primary issue, followed by groceries and utility expenses. Arranging for rent as an unemployed is challenging. Lacking a regular income source makes it nearly impossible to save for even important expenses.
Moreover, the quickly changing economic curve adds to the fire. It further makes savings difficult. Here, very bad credit loans may help bridge the gap. You can finance the rental costs using the loan. Yes, you may get a higher sum if you could reveal the best income sources to support the repayments.
4) Finance medical costs and emergencies
The body does not count in the budget you have. If you often struggle to get affordable medicine or treatment, very bad credit loans can help. However, before that, check and leverage the insurance cover. If you have been regular with payments until employment, you may benefit from it. It may cover a large amount of charges like- operations, surgeries, and tests.
Alternatively, to finance short-term medical needs like- consultation charges, vaccination, or dressing, very bad credit loans might help. You can even use it to pay for medicines. However, borrow only after analysing the amount you can pay after the loan agreement. It would help you avoid unnecessary charges and debt.
5) Practice mindfulness and self-improvement
Unemployment or laid-off times call for some self-improvisation. Moreover, your mental health requires constant check. It is natural to go through feelings of worthlessness, irritation, nothingness, helplessness and loss of self-esteem. However, you must not let these aspects linger deep in your mind. Otherwise, it may impact your body and the power of decision-making. You would want to be conscious regarding the latter.
What may work here?
Improvising your abilities and overcoming the weakness will help you. You can join classes and recreational centrers to release the trauma and think productively. Do not worry about missing out on the offer. You can get very bad credit loans the same day within 15 minutes to your bank account. You can utilise this and enroll in the best program that helps you grow internally and professionally.
These are some prominent uses of very bad credit loans for the unemployed. However, some individuals struggle to find a part-time job and leverage benefits.
What if I lack part-time income but only leverage benefits?
If you only have benefits as your legal income, it is difficult to qualify for loans. Lenders consider different criteria like sources of income and affordability to provide the loan. Some lenders may also consider Personal Independence Payments and Disability benefits as income.
If you have any of these, loans for people on benefits may help you. You may only qualify for essential needs for up to £1000 here. However, before applying, check whether your benefit cover makes it to the lender’s list of benefits income or not.
These are some ways a very bad credit loan can help you fight unemployment financial blues. You can use it anytime and from your comfort zone. Finance your critical requirements within time without disturbing your budget. Moreover, it helps your credit score in the long run.
Leo Allende is a Senior Content Editor at Myfinancialloans. He is dedicated to give his readers the well-researched and fact oriented blogs with the in-depth study of the UK loan marketplace. He has won many prestigious awards in his long 13 years of experience while working with many reputed financial firms.
Leo Allende became the passionate of UK finance and loan market after joining Myfinancialloans where he parts in decision-making body. Leo has done Doctorate in Finance.