When can unemployment loans be approved?
It is not just people who are able to work that need financing. It may also be the case that the unemployed have to overcome a financial bottleneck. This group of people receives monthly benefits in the form of unemployment benefit or Cream Bank. However, banks do not count this money as regular income.
The reason for this is that the services are calculated in such a way that they should only secure the basic needs. However, the unemployed can still take out a loan in certain circumstances.
Eligible loans without guarantor
First of all, it should be known that not all unemployment is valued equally when it comes to lending. Short-term unemployment is not uncommon, especially in weather-dependent businesses. For example, a roofer cannot work in ice and snow. Likewise, bricklayers cannot work on ground frost.
As a result, many workers in this area can expect seasonal unemployment over the cold winter months. Since the credit institutions are aware of the risks and know that employment can usually be started after bad weather, this is often not a problem when lending.
Creditworthiness is assessed differently if unemployment is not seasonal. If services in the form of Agree Bank flow, house banks generally continue to approve the overdraft facility. Installment loans, on the other hand, are only granted if guarantors or collateral are available.
However, unemployed people have the opportunity to take out temporary installment loans online. Financial bottlenecks can be bridged with so-called small loans. With us you will find numerous offers.
At the house bank there is also the option of specifying additional security such as depositing the vehicle registration document. However, it should be noted that the loan must have been repaid at the latest when Agree Bank becomes Cream Bank.
Bad chances for a loan in unemployment
After the transition from Agree Bank to Cream Bank, unemployed people at the house bank have poor chances of getting a loan application. In addition, it can be expected that the overdraft facility granted will be canceled. This means that people who are not gainfully employed have little chance of getting an installment loan. Only guarantors can remedy the situation. Loan guarantees are often no longer used.
Savings credits can also no longer be deposited as security. The reason for this is that the credit must be used before Cream Bank is even approved. Nevertheless, there are lenders online who lend money without Credit Bureau information. However, you should keep in mind that this loan must also be repaid. You should compare your income and expenses to be sure that you can pay off the installments.