Making it Through Hard Times with Unemployed Loans
If you have lost your job or are otherwise unemployed, you may be interested in acquiring an unemployed loan. Although an unemployed person is generally considered to be a less-than-ideal candidate for a loan, certain lending institutions are willing to provide loans specifically to those that are in a temporary and unexpected unemployment situation.
The Perks to an Unemployed Loan
For a person facing unemployment, an unemployed loan can be a true life saver. We have all seen people on the streets who, in a desperate attempt to make ends meet, stand on the corner with signs saying, “Will work for food” or other similar messages. With the help of an unemployed loan, people in dire straits such as this do not have to embarrass themselves by begging for money. Rather, they can spend their time searching for a new job while their finances are cared for with their unemployed loan.
The Downside to an Unemployed Loan
One of the downsides to an unemployed loan is that it can be difficult to find a lending institution that is willing to approve someone that is unemployed. In addition, because of the extra risks involved with lending to the unemployed, these lending institutions do charge higher interest rates on these loans.
Types of Unemployed Loans
There are two types of unemployed loans that you can apply for if you find yourself in this situation. The first is an unsecured loan. This type of loan is similar to the line of credit you receive on a credit card in that you do not have to put anything up for collateral. A secured loan, on the other hand, requires “securing” the loan with collateral. This collateral is usually in the form of property, such as your home.
Obviously, an unsecured loan is more desirable because you do not have to risk losing your home or other valuable property if you happen to default on the loan. This type of unemployed loan is usually more difficult to get, however, because of the high risk the lending institution is taking when approving the loan.
Finding an Unemployed Loan
Whether getting an unsecured or secured unemployed loan, you should still take the time to shop around in order to find the institution willing to give you the best interest rates. You also need to take the time to review the repayment terms of the loan. Although you are in a desperate situation and may feel a bit panicked about your financial security, do not jump on the first offer you receive. Some unscrupulous lenders are counting on you to be desperate so they can get you wrapped up into some very unattractive terms that will cost you a great deal of money in the long run.
One of the best and easiest ways to search for an unemployed loan with attractive terms is to look online. Here, you can browse through a number of different companies and compare them without having to leave your house.