When you encounter unexpected unemployment, you feel like a fish out of water. You put in multiple loan applications, but most of the time they are rebuffed as you lack a steady source of income. However, a few direct lenders consider your application if you arrange a guarantor.
Undoubtedly, getting a lender to sign off on your loan application is a mammoth task. It is quite understandable that not all lenders can be liberal to provide you with financial support, but some direct lenders offer unsecured personal loans.
There is no doubt that a lender will not disburse you money if they are not certain about your reimbursement capacity. During unemployment, you need money faster and therefore approval rate should be faster too. It is not possible for the unemployed to arrange a guarantor within a short period. Therefore, lenders ask you to submit your income statement to analyze your affordability. It gives them a deep insight into your incomings and outgoings. They will disburse you funds on the basis of your affordability.read on financeblogposts.com
When do you need a guarantor?
You can apply for unemployed loans without a guarantor as long as you do not have CCJ on your report. Once it is issued against you, it throws you in the list of borrowers with very poor credit history. In such a case, it becomes almost impossible to get a new loan.
However, you can get CCJ loans from direct lenders. You are eligible for these loans as long as you have shown satisfied CCJ in your report. Since there is a huge risk involved in lending you, you will have to arrange a guarantor. You can also put valuable security against the loan if you do not get any guarantor to get a loan easily & listen to music.