Is it possible to get Emergency Loans if you are Unemployed?
The economy can be unpredictable at times and where you are today financially may not be where you will be tomorrow. Therefore, financial stability is not one thing that you can never be sure of, and with the fluctuation ghost always haunting us, one can never count on their financial stability.
This is why banks and other finance-based firms are still in business because sometimes money can be scarce and elusive. That said, it is easier for one to get a loan if you are financially well-off. For example, if you have a well-paying job or some significant things that you can give up as collateral, banks will be very quick to give you a loan because they believe you are in a position to pay up. But what if you are jobless?
If you are unemployed, your financial situation is uncertain and this makes it difficult for you to get emergency loans. This is why payday loans were made available so that people with uncertain financial situations can get emergency loans quick. Here are the advantages of payday loans:
High Approval Rates
Most payday loans are approved almost instantly once you have provided the necessary information. The application process is very easy and quick. You do not have to fill out lengthy application forms in triplicate or wait several days for the feedback. In fact, the funds can be transferred into your account on the same day or the next working day. A large number of lenders in the market has encouraged healthy competition and thus the services are offered faster so as to attract more clients. It might take a few hours, but in the end, it will be worth it and the services will be much faster than the alternative.
Conventional loans can be tedious due to the lengthy paperwork that you have to fill out so as to increase your chances of approval. They can also be unreliable since they have lower approval rates as compared to payday loans. You can never count on them, especially when in need emergency loans since their approval process takes time and your loan might not be approved in the end. Therefore, when it comes to high approval rates, payday loans are the way to go. Moreover, payday loans give feedback within an hour. This means that in case your loan was not approved, you will still have enough time to look elsewhere before time runs out as in the case of emergency loans.
They Are More Convenient, Especially When You Need Emergency Loans
Payday loans are very convenient since all the processes and operations are conducted online. This means that you do not need to take some time off work to go and meet up with your lender. You also don’t have to make several calls to your lender (which might go unanswered sometimes) so as to arrange a meet-up to discuss your loan application. Consequently, if you are a single mother, for example, you do not have to make long queues at the bank or take some time (which you do not have) off your schedule to go and apply for a loan (which might not be approved in the end.
Payday loans save you so much time and resources as a result of its convenience. Moreover, payday loans can be used however you want since you get your loan in cash. This is more convenient than credit cards where you can only use it to pay for goods and services. Payday loans can be used to cover emergency loans such that you can use the money to pay for loans and other bills that are almost overdue.
They Have Minimal Requirements
Payday loans have very minimal requirements as compared to traditional loans. Traditional loans come with a long list of requirements topped by collateral. You do not need collateral to acquire payday loans. All you need is to meet a few basic requirements such as proof of your residency and an active checking account. The best part about payday loans is that you can easily get approved even with bad credit!
It Is Easier To Qualify For Higher Loan Amounts
Traditional loans come with many restrictions such as the loan limit. Failing to pay on time can attract major penalties. However, payday loans are more easily accessible with more growth potential. For example, if you are a first-time borrower and you pay back your loan on time, the lender can increase your limit such that next time you will be more legible for a higher loan amount. This would have taken a longer time to happen in the case of traditional loans. Moreover, most payday loans give a grace period before they start penalizing you in the case of a late payment.
They Are Good For Your Credit Report
Payday loans come with a short repayment period. On one hand, this might be viewed as a disadvantage. However, on the contrary, it is a major advantage for your credit report. Look at it this way, installment loans give you like 2 years to finish paying the loan. Withi9n that period, a lot can happen that might challenge your financial stability. You might lose your job or main source of income, prompting you to miss some payments. This, in turn, will reflect on your credit report and largely affect your credit score. Therefore, payday loans are a good way to build up your credit score over time. Moreover, late payments can attract major penalties and fines which might be a huge financial burden to you.
Payday loans are a cheaper and more convenient way to obtain emergency loans. Besides the advantages discussed above, payday loans have more to offer than traditional loans. As a single mother, it is normal to be financially strained at times. Make payday loans your best friend in order to get quick fixes when you need emergency loans. Struggling with bad credit? Don’t worry. Payday loans are easily available for you even with your bad credit. Payday loans provide a solution for quick cash for unemployed people and others in uncertain financial situations.