If you go unemployed it can be difficult to get a loan – especially if you go to the bank. The banks are less willing to lend money after the financial crisis occurred, and even if you are unemployed, it is even harder to get a loan approved in the bank. If you therefore find it difficult to borrow through the bank, you have another option and that is to borrow money online instead.
It is easier to borrow online because you do not have to provide collateral to loan providers, nor do you have to explain what the money should be used for. This makes the approval process faster and easier, but these loans, however, are typically more expensive. You can read more here about borrowing money online.
Be careful before you borrow when you are unemployed
As I said, the online loans are typically somewhat more expensive than when you, for example. borrow money in the bank.
This is because you do not provide collateral when you take out these loans, and therefore loan providers will demand a higher interest rate and more cost on the loan. You should therefore be careful not to borrow too much money, and you may even consider not borrowing at all, as it can become very expensive if you do not get paid off on the loan.
If you still want to take out a consumer loan or a quick loan, we recommend that you put in a loan plan that fits your finances so that the loan is paid off in a timely manner.
Look at the OPP and total cost
You will be told OPP when you compare. The APR is an expression of how much you are going to pay annually as a percentage of having the loan. It is therefore a good indicator of how expensive or cheap a loan is going to be for you.
The lower the OPP, the cheaper it will be for you. However, you should be aware that a loan with a longer maturity will have a lower APR. This does not mean that the loan is cheaper, but merely that the costs are distributed over a longer period.
In addition to the OPP, you will also be told the total cost of having the loan. This is the easiest way to compare where a loan will be the cheapest.
However, the cheapest loan will usually be the one with the shortest term as more costs come on a longer loan.