With 9.7% of the U.S. workforce and growing without work, finances are extremely tight for many families. Whilst the banks were all too willing to lend money in the past, they are no longer interested because of the inextricable link between joblessness and the risk of default. However, it is possible to get a same day unemployed loan from a pawnbroker to help meet a financial obligation, such as paying the rent or a utility bill. The cost of borrowing isn’t cheap, but a loan with no job provides a genuine lifeline for the struggling consumer.
Poor Credit Loans with No Credit Checks
Bad credit unemployed loans are available from a pawn shop without the need for credit scoring. This is because, in order to borrow money, it is necessary to provide the lender with collateral (gold, silver, jewellery, electrical goods etc). Unless the item is redeemed, by paying back the principal and any interest that has accrued, the item will be sold at the pawnbrokers. For this reason, the default rate is in the region of just 10-20%. Pawn shops offer loans with no job because they have nothing to lose and a lot to gain.
The Cost of Pawnbroker Loans for Unemployed People
The cost of borrowing varies considerably between pawn shops, but it typically costs $20 to $25 to borrow $100 for a month. Subject to the value of the item, it is possible to borrow over $10,000. David Crume, president of the National Pawnbrokers Association, stated that the maximum value of instant loans for unemployed people is 20% to 25% of the collaterals value. This is to ensure to ensure that, in the event of default, the worth of the item is greater than the loan and any interest that accumulates.
Pros and Cons of Unemployed Cash Loans
Same day unemployed loans with no credit checks provide money when finances are tight. The problem is that the rate of interest is so high that, when combined with the repayment of the principal, it leaves less money to pay household bills the month after. Failure to redeem to the item by settling the debt and an item of far greater value than the loan secured on it will be sold to recover the money that was lent. Only take out a loan with no job for an emergency and not to make frivolous or impulse purchases. Consider carefully how the debt will be repaid at the end of the borrowing term.