Facing sudden unemployment is tough especially for someone who has family to feed, bills to pay, and children to send to school. That’s why it’s very important to properly manage your money and save funds for situations like this. Even so, the reality is that not all people have emergency savings set aside and you will need some finances to see you through while you get back on your feet.
In circumstances like this, you may want to consider taking out a loan. Cash loans for unemployed individuals is possible however it may be harder to get compared to those who are employed.
Are Cash Loans Accessible for Unemployed Individuals
Fact: Should you be unable to present proof of income, loan companies are more unlikely to give you a cash loan. On the other hand, even though you don’t have employment, you will find available options so long as you offer an alternative income source.
What’s the Best Loan Terms and Rates for Cash Loans?
With loan products in the market, the best rates and loan terms are often offered to those with good credit standing and those who keep a steady source of income (employment). Traditional banks usually turn down applications without a steady source of income as the risk of late and missed payments is high. Nonetheless, unemployed individuals have the possibility to apply for short term loans such as cash loans online. However, please note that these loan types offer high interest rates with expensive costs and fees.
Cash loans for unemployed can offer assistance for Australians who are facing this circumstance, whether or not they are college students, pensioners, solo parents, or individuals with families to look after. These types of loan products are good as temporary solutions as there are consequences associated with it.
Pros and Cons of Cash Loans For Unemployed
Cash loans as mentioned are a temporary solution for those who find themselves out of work. It maybe good for now but it could also lead to more financial issues at some point. Let’s take a look at what’s good and what’s bad about cash loans for the unemployed.
Advantages
Cash loans are easy accessible cash that can help you make both ends meet. Responsible lending and repaying your loans on time also improves your credit standing.
The application process for cash loans is fast and easy considering that it can be completed online.
Short term loans online like cash loans have easy approval. Typically, you get an approval within the day if without problems. Loan application can also be done online. You’ll be able to determine if you are qualified with the loan amounts you have in mind simply by going through the application form you’ll get access to when doing an online application.
Online lending allows you to compare several loans and compare the lowest interest rate and best terms that suits your financial situations.
Disadvantages
Much like other short term loans, cash loans online have higher interest rates compared to standard personal loans. Also put additional fees and charges into consideration when taking out a small cash loan.
Shorter repayment period. Cash loans online have very short repayment period that being unemployed you will have to race against time to get employment so that you can make payments on time.
No early payment savings. Online lenders don’t usually charge for early payment penalties but they also don’t offer early payment savings. This means if you pay earlier than the due date you still get to pay the same interest rate and fees.
While cash loans for unemployed may appear feasible for the moment, it is important to watch your timeline in order to avoid accumulating fees and negative marks on your credit report. For the most part, if you find yourself in hardship, you may want to consider other options before signing for a cash loan online.
