Many loan companies have had to lower their loan annual percentage rates (APR) to compete for business. That is right. Consumer credit has been on the rise and the banks are starting to ease their lending requirements. As a result, many lending companies have had to lower their interest rates. Of course, all of this is good news for the unemployed or those with poor credit histories who need an infusion of restorative funds.
Of course the unemployed have a disadvantage
Any job, even one not very financially rewarding, is so important when when applying for a loan. After all, that is the wherewithal with which you will satisfy the terms of the loan contract. Traditional lenders, such as banks and credit unions, a going to be a rough draw when looking to approve an unemployed person for a loan. Unemployed borrowers just need a little help to get them through the tough times. But traditional lenders are not the only source of relief for the unemployed.
Flexible lenders are willing to help
As a result of market demands from the jobless, non-traditional lenders have stepped in to fill the breach that traditional lenders fail to fill. Some lenders are so flexible that they will delay repayment in light of a promised job a month or so down the line. That allows the unemployed to get on the job, take a month or so to get things back to normal, and then start paying on the loan. With the help of this unemployment loan, the consumer is able to meet day to day expenses.
Consider other opportunities
Of course, an unemployment loan is only a stitch in time measure. The loan must be paid back under the terms and conditions of the contract. Unemployment could be an opportune time to take an inventory of your assets and consider selling some of them. This may be psychologically depressing, but give it some hard thought.
You must consider the new debt that you have incurred when you make your determination to do so. You probably have accumulated a bunch of stuff that you really do not need or use. Get rid of it for the cash you can get. If you do not want to sell it outright, you might consider taking the items to a pawn broker to see what value you can wrest from them for the short term.
Shopping for your unemployment loan
Your best bet would be to approach lenders online. You can find brokers who will take some basic financial information and hook you up with several lenders who might be willing to lend you money according to the amount you need, the interest rates you would like to pay, and the repayment terms that you and your budget would find comfortable. Because of the vast competition, you will be able to pick and choose. Just be careful.
Whenever you go online to execute a financial matter, you must be aware of anything that might compromise your identity or your financial information. For the sake of your credit rating, remember that money is not free and that you need to repay the loan under the conditions specified in the contract you will have signed.