If you’re currently out of work and on benefits, you’re no doubt searching for a no employment check cash advance to help you to meet a short-term financial need. Cash loans for people on benefits, even if you have a history of bad credit, are widely available on a secured or unsecured basis.
Lenders traditionally check your employment status to establish whether you have the means to clear your debt at the end of the lending term. However, loans for unemployed people on benefits are available when you can prove that you have sufficient disposable income to clear the outstanding balance.
No Employment Check Cash Advance Loans from a Pawnbroker
If you have a source of collateral, such as gold or jewellery, you may be able to get cash loans for people on benefits from a pawnbroker. You can normally borrow up to 50% of the items value for a period of 30-days. The value of the item will be assessed by an internal expert.
Payment will be made to you in cash. You’ll also receive a receipt in order that you can redeem your collateral at the end of the term. The item is redeemed by settling the principal along with any interest that has accrued. You should expect to pay $20 to $25 interest on every $100 that you borrow.
Bad Credit Loans for People on Benefits from a Member of Your Family
Most people don’t even consider borrowing money from their family when they’ve lost their job. However, provided that you don’t ask someone in a similar predicament, you’ll be able to get a no employment check cash advance loan that’s either low interest or totally interest-free.
The danger of getting a family loan is if you find yourself in a position where you’re unable to repay it. If this situation arises, always keep that person informed. Don’t bury your head in the sand as the problem won’t go away and it could create tension between family members.
Doorstep Loans for Unemployed People on Benefits (UK Only)
There are doorstep lenders, such as Provident Personal Credit, who offer cash loans for people on benefits for up to £500 at a typical APR of 272.2%. You’re able to spread the cost of repayment over a period of up to 52 weeks. The longer the term, the greater the amount of cumulative interest you’ll need to repay.
If you borrow £450 over 31 weeks, you’ll need to repay £22.50 per week. The APR is 365.1% and you’ll repay a total of £697.50. However, doorstep loans remain one of the few regulated ways where the cost of repayment can be spread over an extended timeframe.
No Employment Check Loans for Unemployed People on Benefits
Although you’re more likely to be able to meet your financial obligations if you’re in work, the only genuine determinant is “affordability”. You may be jobless, but your living costs could be a lot lower than an employed person. Regardless of your employment status, never over-stretch yourself financially.
No employment check cash advance loans provide a way of negotiating a genuine financial emergency, such as paying the rent. Cash loans for people on benefits should be avoided for making frivolous purchases, such as a foreign holiday, as there’s no such thing as easy money.
Loans for Unemployed People on Benefits vs Debt Free Solutions
If you are finding it difficult to pay your bills, seek advice from a free credit counseling service. Loans for people on benefits with bad credit are not a long-term financial solution. There are other debt solutions that allow you to deal with money problems without borrowing additional money.