Loss of stable income, reduced wages, and limited income from benefits affect the lifestyle requirements. It increases reliance on overdrafts, and one falls behind on bills and can hardly save for emergencies. This leads to deadly circumstances, like the worsening of a prolonged illness.
In this situation, one seeks financial assistance in the form of benefits and other schemes they may qualify for as unemployed. However, it may not suffice every time. Here, getting a lump sum without many challenges and hassles could prove life-saving.
So, yes, you can get a loan as an unemployed person. However, knowing the “Whys and Hows” may help you navigate the deal better.
What financial issues do the unemployed face?
Out of a job, people struggle to pay important bills like rent, water, electricity, and maintenance. They jump on mortgages, payday loans, and other loan payments. It significantly affects the financial wellness curve and stability. Here are other issues that people face according to the latest facts.
| Problems due to unemployment | Consequences |
| Difficulty in paying rent | Risk of eviction, need emergency housing support. |
| Skipping mortgage payments | Fear of losing property, increased stress, and instability. |
| Rise in personal debt. | Growing balances, interest charges, and penalties |
How can loans help you out here?
Yes, getting a loan as an unemployed person is a tough cookie. However, once you get one, it may prove stress-relieving in most worldly situations:
1) Provides instant cash
You may get a loan with quick turnarounds to pay rent on the due date. You don’t need to escape another payment and risk eviction. It does not require detailed documentation or collateral. Instead, you get loans for the unemployed in Ireland according to your affordability.
2) No impact on credit score
You may get the funds without affecting your initial credit score. It is a no-credit-check loan option that helps you get a general quote to understand the basic costs. It helps you know the chances of qualifying and the amount you may get according to your potential. However, you must ensure regular payments to keep your credit score intact.
3) Can apply even with a bad credit rating
Yes, you don’t need to regret past credit mistakes forever. You may qualify even if you have a bad credit history. The prime focus of these loans is affordability. If you can afford to repay the loan, you may qualify.
4) Relieves you of family and societal pressure
Money issues may strain your relationships with your loved ones. You don’t need to bother them with minimal cash requirements. Instead, you may consider an individual loan based on what you can afford.
5) Does not affect the basic budget
Yes, the flexible repayment structure allows you to spread the loan costs in easy, manageable payments. You can choose the repayment term according to what you can comfortably pay per month. Set direct debits to remain at the top of the payments.
What obstacles do you face in getting a loan? How to counter these?
Here are the most common issues that unemployed individuals face in Ireland. Read ahead for the solutions:
| Obstacle | Why is it a problem? | Solution |
| Lack of consistent income | You generally need a recurring income to get a loan | Show an alternative income source apart from part-time income- rental, dividends, benefits income |
| Low creditworthiness | Missed payments, loan defaults, and CCJs affect approval chances | Clear some debts, prioritise manual assessments over automated ones for personalised quotes |
| The high cost of living affects affordability. | Rent and other utilities reduce disposable income, which is critical to get a loan. | Borrow a smaller loan amount on an extended loan term. It reduces the monthly instalment. Use a tool to calculate repayments for a better idea. |
How likely are you to get a loan as an unemployed person?
It is difficult but not impossible to get a loan as an unemployed person. Individuals with low but consistent income may qualify.
Instead of mainstream providers, contact the specialised loan companies dealing with unemployed and bad credit applications. It increases your chances of qualifying at a lower interest rate. Here is the clear information about who is likely to get a loan as an unemployed person:
a) Have a fixed residential address
You must have been living in a place for about 6 months or more. Having a longer rental history of living at the same location improves approval chances.
b) Must be on the electoral roll
Having a political identity showcases you as a reliable citizen of the country. Hence, you may get a small loan if you have an electoral roll presence with updated information.
c) Should have relevant income
You cannot get a loan if you are just on government benefits. It does not count as legal proof of income or as the only income. Thus, having a part-time income increases the chances of qualifying for the loan. It should also be from traceable or authentic resources.
d) No recent bankruptcy/ CCJ status
You should not have any bankruptcy or CCJ status, or it should be marked as “satisfied” if you pay the dues within a month. Having such issues affects the approval chances.
e) Have a guarantor
Applying with a guarantor works when you need a good lump sum as an unemployed person. You may get an instant loan approval with lower interest rates and liabilities. The guarantor is responsible for covering the dues if you cannot. It thus helps you save or avoid the loan default chances as an unemployed person.
What are some loan options to apply for as a jobless person?
Multiple loan options may help you fund your loan requirements. You can get the following loans as an unemployed individual:
1. Unemployed loans
These loans are specifically designed for individuals who lack a consistent income source. Identify how much you can get given the requirements and the eligibility criteria. It is an individual mode to get instant cash for your needs. Prepare a budget to repay the dues after getting unemployed loans. It helps you avoid the anxieties associated with non-repayments.
2. Bad credit loans
Most unemployed people lack a decent credit score. It is due to the pending payments, missed payments, CCJs, loan defaults, etc. However, bad credit loans may prove helpful there.
You have better chances of getting the loan than with traditional loans. It is because these are specifically designed and cater to the issues faced by individuals with low credit history. If you need a higher amount, provide collateral.
3. Quick loans
As the name suggests, these quick loans help you fix an emergency requirement in a jiffy. It is regardless of your unemployment status. You just need to have a minimum income to prove your affordability for the loan. The amount you get on quick loans stays small, like 5000 pounds. It is sufficient to support small needs like medicines, small bill payments, etc.
4. Doorstep loans
Doorstep loans, also known as home collection loans, help you get the cash delivered to your door. It is an instant cash facility that supports urgent cash needs at home/ workplace. You may get up to €1500 for your needs. You don’t need to worry if you lack a bank account or a credit score. You can qualify for the loan despite that.
Bottom line
Yes, you may get a loan if you are unemployed. However, you need to know the eligibility criteria, affordability, and choose the right amount. Borrowing more than you can comfortably repay may lead to loan rejection. It is because it may affect your financial well-being. Thus, identify other ways, like getting a loan with a guarantor. It helps you get a quick loan at low interest rates despite a bad credit history. Alternatively, try to improve your income.
