Getting A Payday Advance For The Unemployed

payday advance for unemployed

People who are unemployed will often have difficulty paying their bills. Due to this, they may need some assistance every now and then. Thankfully these people can get a payday advance for unemployed.

What is a Payday Advance?

A payday advance is essentially a small loan for unexpected financial emergencies. These loans have lenient lending conditions and can be paid out within a few hours. This type of lending has high fees and high interest rates.

Who Can Get a Payday Loan?

Because payday loans have very relaxed lending rules generally anybody who has a job and is over the age of 18 will be approved for a loan. That being said, not everybody would want to get a payday advance. People with good credit and a healthy income are better off approaching their bank. This is because banks can approve and pay out overdrafts within a short amount of time. The overdraft product also has a much lower interest rate than payday loans.

The people who traditionally apply for payday advance for the unemployed are those who need cash in a hurry or cannot meet regular lending conditions. As payday lenders do not conduct credit checks, they are taking on a considerable risk every time they take on a client. This is especially true if the borrower is unemployed. Lenders try to reduce this risk by recovering as much money as possible in interest and set-up fees.

Can Unemployed People Get a Payday Loan?

Unemployed people who are looking for a loan should be aware getting approved will not be easy. Even payday lenders are reluctant to take on clients who have no money coming in to pay the loan back. In fact, many payday lenders will refuse to lend money to the unemployed.

There are some lenders that will lend to the unemployed. However, these are few and far between. Applicants will generally have to spend quite a lot of time looking for a reputable lender. In some cases, the lender may be willing to go ahead with a loan if the applicant puts up some collateral. This could come in the form of a car, jewelry or household items.

Unemployed people who are having trouble finding a lender should not give up. Those who look hard enough will be able to find a company that meets their needs. It is important that applicants keep an eye out for lenders with dishonest business practices. Many loan sharks target unemployed people as they have very few options available to them. Companies that charge ridiculous interest rates or place strange conditions on the loan should be avoided. Some borrowers have reported dealing with companies that asked for the pin number to their debit cards. Anyone who is asked this information should not disclose it. This is both illegal and dangerous. People who have income coming in from government assistance or child support may be able to use this as proof of income. Every lender has different rules regarding how they deal with unemployed applicants.

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