Even if you are unemployed, you can get a loan, but it’s not easy.
Imagine yourself for a moment as a borrower. Who would you be willing to lend your money to? At the very least, the criteria would probably be the reliability and solvency of the borrower in order to recover yours in the future.
Regular income (for example, salary income) improves your ability to pay, which of course increases your borrower’s ability to pay. That’s how banks and MFIs think. But the game of the unemployed is still not fully played.
Lending to the Unemployed – Can It Be Successful?
Granting a loan to the unemployed depends on the loan provider. However, you can improve your chances by:
- Prove your wealth. Other income (eg earnings-related unemployment benefits) or savings should be highlighted in the loan application to compensate for the lack of a job.
- Are you getting a pension? Withdrawal is often counted as regular income, so obtaining a loan is often not an obstacle.
- Consider using guarantors or collateral where possible.
- Consider using a co-applicant. For example, a joint loan with an employed spouse lowers the loan provider’s threshold.
- Check the loan type. It may be difficult for the unemployed to get a mortgage, but smaller consumer loans, for example, may be easier to get.
- Ting about the loan amount. Sometimes a smaller loan amount can make it easier to get a loan.
Credit Card For Unemployed – Succeed!
Still not granted a loan? The unemployed can get financial flexibility in their daily lives with a credit card. However, when using it, care must be taken to avoid financial difficulties.
If you have already acquired your credit card while you are at work, you are in a good position. However, if you need to get a credit card now when you are out of work, you will unfortunately have to be prepared for the hardships in this case too. The most common requirement for a credit card is once again appointing a regular income.
BUT: For example, the Credit Card brings light to the end of the tunnel. For the credit card in question, the applicant is not required to have a regular income but to be of legal age, identity number and permanent address .