Nowadays, availing a loan has become so easier thanks to the FinTech lenders in the UK. People who are jobless can easily fulfil their immediate financial needs by securing short-term loans for the unemployed with no guarantor and no extra fee. If your repayment capacity is lower and not sure about the employment status in the future, then availing long-term loans is the best option to choose. Both short-term and long-term funds have their own features, benefits, and disadvantages.
The online lenders in the UK offer these unsecured funds for shorter durations i.e. 3 months to 2 years. You don’t require to submit your valuable assets with the lending company or get the loan application co-signed from a guarantor. Just a small online form is enough to access a short-term loan with no time delay.
You can use these funds to solve your immediate financial problems, i.e. credit card bills, electricity bills, grocery bills, medical bills and so forth.
Short-Term Loans for the Unemployed
If you are jobless and have a bad credit history, then arranging funds from the typical lenders with no security is almost impossible. However, you can immediately stabilise your finances by availing a short-term loan for the unemployed with no guarantor and no fee from the online credit lenders in the UK. They offer viable financing deals with no complicated procedure and no fuss. All you have to do is – fill a small online form and let the lender solve your financial crisis on the same day.
Anybody who is 18-75 years and a resident in the UK stands a chance to avail guaranteed unemployed loans with no extra charges.
Benefits of Short-Term Loans
Life keeps surprising you with sudden financial emergencies, unseen expenses, accidents, and more. In such grim situations, you need to arrange immediate funds without any time delay. Instant short-term loans help you to handle all kinds of unexpected financial crises without any hassle. Let’s have a quick review of its advantages:
Instant Approvals with No Fee
A prospective borrower can get the 100 % assured approval on the unemployed loan irrespective of his credit score and without spending even a single pound.
No Security is Required, Simply Risk-Free Funding
The reliable lenders in the UK don’t ask you to submit your valuable assets like your house or car. You can apply online for short-term funds from the comfort of your home without submitting any guarantee papers.
No Need to Run after Guarantors
Nobody helps people who are unemployed and have bad credit issues. By availing an unemployed loan, you stand a chance to get an instant financial relief without running after the guarantor.
Guaranteed Lending to the Bad Credit Customers
Don’t let your poor credit score ruin your financial life. Avail a short-term financing option to get the guaranteed funds without paying a bad credit penalty or any other extra charges.
Disadvantages of Short-Term Funds
Temporary funding options can be availed without going through any complicated procedure. However, there are various disadvantages of short-term loans that should be considered before applying on the lender’s website:
APR is High
You pay more for availing the short-term funds than the long-term funds. There is a lot of risks involved for the lenders, as the borrowers are not required to submit any guarantor or pledge their assets. Hence, the interest rates are usually high.
Shorter Loan Tenure
No matter how much short-term loans for the unemployed are flexible, but you have to pay back the debt within 6 months to 2 years duration. Here, you get less time to repay as compare to long-term financing options where you get time up to 10 years.
You Become a Habitual Borrower
The easiness of availing such lending options makes people greedy for money even when they actually don’t need it. Many borrowers apply for quick short-term financing options without checking their requirements.
If you need high-value funds for longer tenure, then long-term loans are the best options to opt in the UK. You can avail such funds for home renovation, wedding expenses, starting a business and for many other reasons. The online loan application procedure is same as short-term funds, but these lending options have their own benefits and disadvantages.
Advantages of Instant Long-Term Loans
There are various circumstances when you take more time to stabilise your financial life. You are left with no option but to avail funds for a longer duration. It allows you to defeat the financial crisis without putting your valuable assets on the risk. Let’s have a look at advantages of availing long-term funds:
No Cap on the Funds
Such funds bring happy time into the life of the unemployed people who are in search of a large amount of money. The funding amount varies from a lender to another lender but usually, it ranges from 500 pounds to 50,000 pounds.
Highly Flexible Tenure
There have been cases where the loan providers have disbursed money for more than 10 years. Always apply for a long-term loan from the direct lenders only. They are more reliable and less fussy.
APR is Lower
Cheap funds with longer duration can be easily availed without paying any extra fee. You get plenty of payback time to clear your debt without putting any extra burden on your monthly budget.
The Best Indirect Way to Improve your Credit Score
You can transform your poor credit score into a good credit score by repaying a long-term loan on time without missing any monthly repayment. Actually, the online lending companies in the UK share your monthly repayment reports with the top credit reference agencies. If your reports are positive, then obviously it will adjust your score on the positive side.
Disadvantages of Long-Term Loans
Every coin has two faces. In the same way, long-term funds are beneficial as well as disadvantageous. Let’s have a quick look at their disadvantages that borrowers should know:
Some Lenders Ask for the Guarantors:
As the loan amount is higher and there are chances of default, so some lenders in the UK ask their borrowers to get the loan application co-signed from a guarantor.
Debt Stress for a Longer Time
Nobody wants to keep the debt on his head for a longer time. Having so many debts affect your financial health and monthly budget. Availing an instant long term loan keeps you in the debt for a longer period.
Total Interest Cost is High
No doubt, its lending rates are cheaper as compared to the short-term financing. However, the total interest paid is far higher.
Why to Avail Long-Term Loans from Direct Lenders Only?
It is always advisable to avail funds for a longer duration from the direct lending companies only. The top reasons are:
- They are more reliable.
- No brokers are involved
- No brokerage or extra fee
- Instant approval
- Same day lending solutions
- Lower cost
- No guarantor/collateral is required
- Fewer chances of fraud
Both types of funds are easily available in the UK market and can be availed on the same day. Always choose the right funding option after evaluating your requirement and repayment power.