Tenant loans for the unemployed
Tenant loans for the unemployed
There is a stigma to becoming unemployed in the UK, yet quite often this can have nothing to do with an individuals desire to work, more often it is a case of being forced to leave their job through redundancy, particularly in these hard economic times. The credit crunch has a lot to answer for.
However, lets look at the case of someone suddenly being made redundant.
They lose their job because their company is downsizing and suddenly they are on the scrapheap. The hard part to understand is that their credit profile and credit score could have previously been excellent with no signs of them not wanting to pay their bills or make their loan repayments. Yet to the credit score providers like Equifax and Experian, this individual is now considered a high risk. And rightly so; I mean, who would lend to someone who had no financial means to pay them back?
Well, a guarantor loan can help with this very situation. The unemployed individual may be of good standing and have had no previous credit problems such as CCJs, defaults or arrears on cards or loans. the problem is the repayment issue. The individual can give no guarantee whatsoever and being a decent guy is no help to a financial lending institution. A tenant loan is even harder to obtain because the individual will have no asset to back up their application. This effectively means that the applicant has no security to offer a lender; no security = higher risk to the lender as nothing to claim back if the client defaults.
A tenant loan for the unemployed means that with the security of a guarantor, there is every possibility that an unemployed individual can indeed, obtain a loan like any other individual in the UK.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=145e03fd-a316-45f6-90fb-eb3788ef0357)
