Unemployment can be the worst time that enters a person’s life. When at one point you are going through the troubles of finding the source of funds, on the other side, your needs seem like coming to no end. Some needs and requirements are negligible and can be cut off but it is difficult to even think of cutting certain things off from the list. Like, would you stop eating when you are unemployed? Certainly no, right? These are the needs one cannot eliminate from his day to day life in any case of difficulty. Managing of funds become grueling at this stage and thus creates pressure among the sufferers. Unemployment not only comes with financial pressure and burden but it also gets mental burden with it as a companion to ruin some days, months or years of your life.
The level of frustration it gifts you is unimaginable. At this moment, most people get dependent over their families and friends to meet the ends and survive. But, that gives them a sense of dependency that anyone would hate, in any situation. What might be done, in a circumstance like that full of insecurities, troubles, hardships, hurdles and what not? Running away from the situation is not an option in any case.
So what can be done? A simple solution to the problem can be opting for short-term loans in the UK to meet the requirements without being dependent over your family or your friends. All that you need to do is to apply for a loan. But the question then arises is how to make an application that gets you approved for these loans.
Things that can get your loan application rejected
An ample number of things are there that can act as a hindrance in the approval of your loan. You have to be very careful about these things while making an application in order to increase your chances of getting approved for these loans.
Some of these can include the following -
Making a loan application should always be done with patience. Hurrying with the application can increase your chances of getting rejected. While you are in a hurry, there are high possibilities that you might fill the details incorrectly. “Slow and steady wins the race”. In an almost similar way, being slow and steady can help you get approved for the loan. Check twice before finally submitting your form.
Having too many pending loans against you can also reduce the chances of getting approved. These pending loans create an issue of trust among your lenders and make them question the funding. Also, having pending loans can impair the credit score thus making the whole process of approval troublesome. Do not keep payments pending to increase approval chances.
Not having any source of income can also become one of the reasons for you to get rejected. Most of the lenders are particular about their repayments. All they want is timely repayments of the loan amount. Even though you are unemployed it is better that you show a proof of the income in order to get approved for short term loans from direct lenders.
To get yourself approved for a loan or to even increase the chances of getting approved, it is important that your reason to get the loan should not be dubious. For example, if you want to get the loan for some kind of malpractices then there might be high chances that your loan application will get rejected. Or, in case, your lender gets to know about it after your application gets approved, chances of undesirable situation are there.
If you want to get approved on your application of these loans, it is very crucial to avoid doing the above listed things.
How to increase the chances of getting approved?
Now that you know what are the things that a person must avoid if he/she needs loan urgently and is looking forward for a 100% approval. To be on a safer side, you must also be aware of the things that one “should” do for getting approved for the loans. Here are some of them –
Credit score and credit history requirement
Credit score plays a huge role in deciding the approval or rejection of the loan application. To increase the approval chances, it can be beneficial to check that what the credit score requirement of the lender is. Most lenders offer loan to the people falling under their credit history requirement. Being an unemployed, it can be difficult to meet these credit score requirements. Hence many lenders offer short-term loans for unemployed without credit checks.
Before offering the loan amount to the borrower, there are many lenders that want a security for the money they offer. In that case, it should be kept in mind that whatever you are providing as the security against the loan should meet the lenders’ requirements. To get the loan approved, you can also provide your lender the security through guarantor.
Borrow what you can repay
A lender initially looks for the ability of a person to repay the loan. For the same, they need a proof of the income. Exceeding the loan amount than what you are capable to repay can be the wrong choice and lead to rejections. To avoid the same, try to reduce the amount that you borrow. Or, borrow only the sum that you can repay.
Minimum requirement of income
Minimum requirement of income is required in order to create a security for the lender against the loan. When you are suffering from unemployment, the source of income that you can show at the time of application can be the benefits you are provided by the government of UK. Including them to your loan application can increase the chances to get approved.
Keeping these simple things to avoid and to practice in mind at the time of approval can help in increasing the possibilities of getting approved.