Joblessness is the daring situation for the people, who have not yet selected for another job. These people face obstacles in satisfying the emergency financial needs. Due to no income, they are unable to pay their remaining debts and become the bad credit scorer. The traditional financial institutions and other lending firms do not allow them to take loans because of their poor credit and no income status. Even if these people get job, the salary takes time to come and any person, who is unable to fulfill the basic expenses, face problems. To help these people, many online lending institutions are presenting guaranteed payday loans for bad credit. The approvals on these loans come on guaranteed basis, if a borrower is showing the details of the guarantor.

What are payday loans?

Payday loans are short term loans under the unsecured loans category. These are also known as salary day loans, which are helpful in the emergency financial needs. The approvals of salary day loans are faster as many direct lenders also provide them on the easy terms and conditions like no credit check, no lengthy documentation, no restriction for bad credit, no mandatory income status.

Eligibility criteria of payday loans:

A person, who has the citizenship of the UK and completed the age of 18, can get these loans. Generally, a person has to show the income status to the lender but when it comes to the unemployed people, there is no mandatory clause for income with the help of payday loans for unemployed by direct in lenders. The bad credit scores are also avoidable when it comes to salary day loans as these are used for the emergency financial needs.

Note: The above-mentioned eligibility criteria do not apply to all direct lenders. Only few lenders consider this.

Are you about to take a payday loan?

If you are about to take a payday loan then keep in mind that forgetting the step to do research on the online lenders to find the suitable one. Ensuring the terms and conditions are suitable for you, select one lender and then fill an online application form which is available on the website and then submit it. After that, the financial representative of the lending company will consider the credit application and then contact to you by either text or call.

Payday loans are costly or cheaper?

The payday loans are generally costly, if not secured by any collateral like property or vehicle, which should be equal to the value of the loan or the presence of guarantor. Unemployed people have to pay more than the employed as the risk of non-performing asset is more here. To reduce down the cost of a payday loan, provide any collateral or mention the details of a cosigner.

End note:

Consider the payday loans only if you have the extreme need for finance to satisfy the basic needs. Ignore the needs related to luxury or the least priority to avoid the loan trap. Short term loans for unemployed are helpful in many ways, as you can manage the current expenses or even utilise these in setting up the new business on small scale. Choose the flexible repayment period, negotiate for the interest rates to maintain your credit records, and do not miss any repayment. All the best!