If you do not have a job then borrowing may not be a good idea. There are many reasons for this, but there may also be some circumstances where it might be something that could be worth considering.
Most lenders will be reluctant to let anyone borrow money who has no job. They may ask about income or look on your credit report and will worry if the applicant has no job. This is because it will reduce their ability to be able to repay the loan and therefore they could be seen as too high a risk to take on. This thinking is probably sensible as with no job, income is likely to be low and this could mean that it will difficult to make any repayments. Consider how you will manage to make the repayments without a job, where you find the money from and how you will manage to pay your other expenses.
Some loans will not look at your credit rating and some you may already have access to, such as a credit card or overdraft. This means that you could be tempted to borrow and have no resistance to lenders in doing so. However, you should think hard about whether this is a good idea.
A credit card can seem like a great way to borrow because you only have to pay back a small amount each month. This means that you could be able to manage more easily as you will not need to spend a big chunk of money in repayment. If you are out of work you may be glad of this extra money as well because you may be struggling to manage without an income. However, you need to be careful. If you borrow a lot of money this way then you could end up with the interest really adding up. Paying the minimum off each month may feel like you are doing fine, but you will be paying back the interest and hardly paying back anything you owe. This will really add up over the months and years and the amount that you end up paying back, including that interest, could be huge.
An overdraft could also seem like a good way of borrowing money but this could be even more risky. You get charged daily for being overdrawn and so if you are overdrawn for a long time, it can be really expensive. You will be charged until the overdraft is cleared. This usually happens when money goes into the account, but if you are out of work then there may be none going in or very little and this could mean that it will not be paid off for a long time. This could lead to very big accumulations of fees and it would be advisable to steer clear of these if you can.
A short term loan where no credit check takes place is something which many people without work may consider if they need some extra money. These have to be paid back on your next payday. This may not always mean that you need to be employed, it could be when you next get some income, perhaps from benefits. However, you will need to be very confident that you will be able to afford to pay it back when necessary and that you will also be able to manage financially once it is paid back.
So borrowing money when you are not working is difficult but not impossible. However, it is wise to think very hard before you do. Consider how you will pay it back and how much it will cost you. Think about why you want the money and whether you really need it. Think about the alternatives and whether there is something that you can do which will mean that you will not have to borrow the money. You may be able to wait to make the purchase and will hopefully be able to find a job before you do. You might be able to save up some money to buy the item so that you will be able to buy it without borrowing or perhaps just not buy it at all.