Fast Cash Loans for the Unemployed: Are They a Good Idea?

You’ve probably considered applying for a fast cash loan a few times yourself, and considering this option shouldn’t bring with it any amount of stigma. However, unfortunately, people who contract fast cash loans often and / or have a bad credit history (in terms of paying off their debt in time) are often stigmatized in a lot of institutions, during a wide range of operations that would otherwise run smoothly (like buying a phone, signing an ordinary contract for utilities or renting out a new place to stay). This happens because fast cash loans have a way of creating a bad reputation, being considered something which only financially irresponsible people need to get. When you add the lack of a job to that already sensitive picture, you can see why some banks would be reluctant to advertise fast cash loans for the unemployed, and yet these are the people who need such loans the most to get back on their feet. To clear up some of these implications of getting a fast cash loan and how you can avoid them, let’s have a closer look in their technical aspects.

How Do Fast Cash Loans Work?

Fast cash loans, also known as “payday loans” in official USA legal terms or as “instant cash loans” in the words of companies who are trying to sell you one, is the easiest to obtain type of small, short-term, unsecure loan. The unsecure part of their terminology refers to the fact that they don’t require much paperwork or for you to be very trustworthy financially in order to be granted such a credit; that, in turn, means that such credits pose quite a high level of risk for the lender, which also explains their high interest rate (usually somewhere between 10% and 20%). Their interest rate may sometimes go so high, that some states forbid payday loans altogether, but at the same time, other jurisdictions have very few limitations set for the lenders, which puts loaners, an already vulnerable group, even more at risk. Needless to say, since such loans already don’t have the whitest image about them, they are often times marketed and advertised aggressively.

Fast Cash Loans for the Unemployed

However, in the case of this article, the focus is on that niche of fast cash loans for the unemployed. Technically, it’s sometimes harder for some to be able to obtain the loan because of their current joblessness. Oftentimes, unemployed people are asked to borrow money against their home or life insurance as a guarantee that the debt will be paid. Unfortunately, in the case of fast cash loans, if you’re unemployed that means you’ll be charged a higher interest than someone who has a job would be charged in your place, and this kind of factual discrimination will probably contribute to your financial difficulties on the long run. But that’s not a reason to be put down: financial issues still need to be dealt with and the faster you take care of them the better chance you have to escape their vicious circle. Not paying your bills on time chronically is way worse for your credit reputation than getting a fast cash loan if you manage to pay the latter on time.

So, if you find yourself in the situation to need such a loan, you shouldn’t feel too bad about it, as long as you set a clear line between needing the cash loan and just wanting it for a treat you can’t currently afford. People in vulnerable credit situations are already frowned upon quite enough as it is, and it shouldn’t be that way: if you need one of the fast cash loans for the unemployed, don’t put yourself down or allow yourself to get judged and just do what needs to be done. Good luck!

Speak Your Mind