Getting a loan, credit or any other type of financing when you are unemployed is much more complicated than when you are working and developing a paid work activity.
However, even when a person is receiving periodic income in the form of unemployment benefits or unemployment benefits, conventional financial institutions and fast credit entities may become more reticent in offering financing.
So does this mean that an unemployed person with no income cannot access a loan?
Credits for unemployed without income: do they exist?
A priori, the answer is no. Most loans are made based on a personal guarantee, that is, with the certainty that, if you are going to ask for a loan, you have the necessary resources to repay it, whether in the form of savings, salary, wealth, etc. Faced with this type of loan, the absence of a payroll is an important handicap for the application to be accepted. If we add to this the total absence of periodic income, the possibility of it being accepted seems complicated.
In these cases, since we do not receive income, we can choose to explore other options, such as collateralized loans. What are they? A type of loan that requires a property or an asset as collateral. In this way, if you do not meet your financial obligations, the lender will have the right to keep this guarantee as compensation.
When a person with no periodic income applies for a collateralized loan
The first thing they do is evaluate their assets. Based on this information, a valuation process called scoring begins, through which the loan will be analyzed.
Scoring consists of assigning a score to a series of data (in addition to the asset situation previously analyzed) such as the applicant’s profession, age, marital status or length of work. If, by adding all the scores, the final value exceeds the minimum established by the entity, it is usual for the loan to be granted and a binding offer to be issued. In this offer, it is mandatory that the client is perfectly informed about the interest rate that will be applied and the amortization table of the loan.
Based on all this information, the unemployed and incomeless applicant should carefully evaluate the risks of applying for this loan. An applicant who is in a delicate financial situation, as in this case, can face the loss of the asset in guarantee if he is not able to obtain future income to pay off the debt. T
This occurs in cases in which the applicant is unemployed and does not receive money periodically, but what happens when, despite being unemployed, he does receive monthly income? Let’s see it!
Loans charging unemployment: requirements
If you are unemployed but receive periodic income you can apply for a credit, but you will have to meet some requirements such as being over 18 years of age, having Spanish nationality or a residence permit and not accumulating unpaid debts that exceed a certain amount of money (In general, the limit is usually around 1,000 dollars, but each entity has its policy). In addition, you will need to have proof of periodic income, regardless of where they come from (benefit, subsidy, pension …).
But the process does not end there. To access a loan, you must first fill out a form that you can normally access through the website of the credit institution. In this form you will have to provide your National Identity Document (DNI) and a receipt that certifies your monthly income. This last document is essential to measure your creditworthiness and, therefore, your ability to repay the borrowed money.
Once this information has been sent, a verification of the data offered is carried out, each specific situation is carefully evaluated and, if deemed appropriate, in a few hours or even minutes, the amount is usually paid in the applicant account.
There are currently a multitude of solutions for those who need financial help to meet their payments. However, it is essential to make responsible use of these resources. That is why credit institutions such as Cream credit evaluate each case and provide support to their clients to help them make responsible financial decisions taking into account their current and potential resources.