The general perception is that having a guarantor for a loan is always better than no guarantor funds. Someone is ready to take the risk for you and borrowing becomes easy. That ‘someone’ is going to repay the loan amount, if you fail to do so and you can get funds on lower rates. Well, actually it is not wrong. Yes, you get certain benefits and achieving approval becomes easy. But what about the situation when you are unemployed? People will not dare to take the guarantee of a person who is not having a regular income.
In such conditions, the support of guarantor becomes the biggest hurdle in attaining funds. You need money urgently but you cannot get it because you do not have a guarantor. Now what? Will you let your debts keep mounting until you fall into bad or worst credit situation? No, you do not have time for that. This is why several types of online loans without guarantor for unemployed people are emerging in the loan market. These loans are gradually making the perception that it is not risky to get a loan without a guarantor. Especially for unemployed because generally they do not get loan for not having a guarantor and in any case they are in loss. In place of losing approval for not having someone to co-sign the loan application, it is better to take funds on your own responsibility.
In fact, there are factors that can make you realise that the guarantor-free loans are not always risky.
Simple and instant procedures
A desperate need of funds leaves no patience to go through long procedures. There are fortunately some online loan options available in which availing funds without guarantor despite unemployment is possible. When you have no formality on the guarantor part, the loan procedure naturally gains a speed. Things that happen online are fast and timely. Getting money at the time of need saves you from the risk of delay in financial commitments. This helps you maintain stability in your finances. The decision on approval comes on the same day. Sometimes in a few minutes. Once approved, disbursal happens on time.
Financial tools make the obligation predictable
While applying online you cannot only choose the loan but can also match your affordability against a particular amount. The ‘LOAN CALCULATOR’ helps you do that. Interest rates, monthly instalments, loan tenure everything can be known by using this advanced financial tool.
Another tool is ‘BUDGET PLANNER’ that helps you distribute your monthly budget in various categories and commodities that you spend for in a month. The amount left in the last can be used in repaying your monthly loan instalment. It also helps you to detect the unnecessary expenses that you are making and can avoid. This improves your repay capacity and you can choose the loan product and amount accordingly. Almost all the online lenders have this tool on their website. This helps in taking informed and patient decisions that are free from uncertainties.
Accessible despite bad credits during unemployment
It is not common to get loans during unemployment and in bad credit situation. But in the case of online loans for unemployed, it is a possible thing. These loans are practically in access of jobless people with bad credits on affordable deals.
No need of brokers
Brokers do the formalities on your part but they charge a huge brokerage bearing which during unemployment can be disastrous. When you avail funds online, you do not need any mediator. It is convenient to visit the website of the lender, choose the loan amount and finalise the deal on your own. Obligation-free funding options like no guarantor loans or unsecured loans for bad credit people for unemployed are already higher in rates. In case, your loan does not get approved, the loss in the form of brokerage fee is obvious. In short, the no guarantor loans are risk free without the interference of the broker.
There are chances to get relaxation in rates
The funds without obligations have higher rate of interest and this influences the APR too. But, there are certain escape windows that may help to convince the lender to provide funds on lower rates. One is present the salary slips and income proof of previous jobs. Another is useful for bad credit borrowers because this is also, what makes the lender raise the interest rates. If you are not carrying the bad credit scores from a long time, there are possibilities that the lender get convinced to consider the rate part. These two possibilities are again making the no guarantor loan a risk-free. At least you have hopes to keep.
Repayments are in control when the rates are in grip
If you succeed to convince the lender on the interest rates, the repayment part becomes manageable. The affordable rates make the monthly instalments small and pocket-friendly. You just have to stay on your toes for making the timely repayments. Another thing that justifies, that financial products without the guarantor are not risky always. To be rational, there are lenders that can even give you an easy instant approval on payday loans without job and of course, the guarantor, but there, the interest rate concession is less possible. It is better to borrow the funds without chasing the people to co-sign your loan request and repay on comparatively lower rates.
It is very natural to fall prey to the financial myths and misconceptions during unemployment. But, always try to keep your calm and know the other side of the coin. You may find better reasons there.