To those having an unstable source of income or no income, finance holds a place of prominence in their lives. Being without a job, and thus no income leaves you financially stranded. There are online lenders who might offer loan to the unemployed with homes or other sufficient collateral. Having good collateral cancels out the absence of income and thus makes you eligible for a loan. The equity of the house gets considered in the loan process. Home equity is the value that the home can fetch upon sale.
If you are not responsible for your unemployed status, insurance companies may step in to help. Their terms and conditions are strict and it also means that you accept the next job offer coming your way, no matter it’s detailed. In case, your credit score is good and all your previous loans have been repaid on time, you might be eligible for an unemployment loan. Even if there is no collateral for you to provide, there are lenders who would give you an unsecured loan. The interest rates will be high and the amount of money available as the loan is dependent on the lender and your personal financial condition.
Types of loans for unemployed:
Secured loans require that you provide the lender with a collateral (any valuable asset) such as a car, home, stock, bonds etc.
Unsecured unemployment loans are for those who are unable to provide any collateral. The interest rates are higher when compared to the other loans. The loan has to be repaid as soon as you find a new job. If you are able to convince the lender of securing a job soon, the loan approval is quicker.
Even those with poor credit, bankruptcies, loan defaults, and other ill financial habits apply for unemployment loans. In case you are on income support, benefits or living allowance, then it will be counted as declared income thereby bringing down the interest rate. In the absence of these, the interest rates will be higher. As a borrower, opt for flexible repayment term instead of a fixed term in such time as there’s no fixed income.
Students who are unemployed and require money for their higher studies, also avail loans for unemployed. Unemployment loans can also be a means to consolidate debt thereby improving your credit score.
Similar to any other loan, it is advised that you explore all the available options and choose the loan most suitable to you. Choose the right loan and it will take care of you till you find a new job.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.