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Representative 277.5% APR Representative Example: Borrow £700 and pay £111.27 per month for 12 months at an interest rate of 140% per annum (fixed). The total charge for credit is £635.24 The total amount repayable is £1335.24. Representative 277.5% APR (variable). Your APR rate will be based on your circumstances.
Finding a loan that can occupy your big expenses or at least make it easy for you to pay your debt can trick you when you only rely on your benefit. But somehow, there are specialist lenders who can help you to fund your necessities and pay them back through your benefit income. Wanna know how it works? It is very easy!
Before you apply make sure you use the legal and ethical responsibility in your checks before getting a loan because this will be their reference whether they will approve you or not. You just have to make sure also that you are eligible for this loan product that you will apply. One thing that you are eligible for is that you can show your capability to meet their repaying deadlines. The minimum requirement of your loan will differ from lender to lender and somehow it will be higher for more significant loan amounts depending on their requirements.
Commonly, loans have been given to those people who have a stable income or work and have an excellent credit history. But as much as possible, it is better not to have a bad credit history. Applying for this kind of loan made it very easy because of the online portals. You just have to provide important information about you, including your proof of income.
Is it difficult to get a loan if you are on benefits?
Factors that might get you difficult to apply are the poor credit scores and bad credit history even. If you have no factors that affect your credit rating, you might have a small credit account. However, We have our loans in which we fit those people who have bad credit as long as you can provide payment for your loan and a valid proof of income. These things might support you to approve a loan.
You can get a signal online by filling out the application form or just calling to talk to an adviser. We can discuss how the loan works, including the interest rate of your loan, your loan term, and the amount of the loan that will be given to you. We are here to help you find the best option that fits you and your financial capabilities.
Moreover, some direct lenders will still offer a certain amount of finances to finances for those people who are currently out of work or claiming benefits and a guarantor is very helpful to have a beneficial loan.
There are many available choices of loans for the people on benefits which depends on the kind of loan that you are receiving. For example, Disability Living Allowances is a loan for benefits in which the lender considers for this is a permanent or long-term benefit.
Moreover, the lender will likely not approve your loan if your benefit term is only for a short term or temporary benefit. However, with this kind of situation, if you can show your proof of income that you can meet all the repayments can help you to approve the loan. Loans for benefits are not for you if you are finding an amount of money to borrow.
To be approved by our specialist loans for people on benefits, the requirements are your proof of income, which includes your benefit claims decision letters, and up to date benefit book if applicable. In some cases, the lender will require you to provide your statements for the account into which the benefit is paid. The assessment also requires your wages and savings.
How easy is it to get a loan?
The lenders in our panel can offer instant approval as soon as possible for your application. If you are approved by our team, they will deposit the money to your account on the same day and sometimes even less than an hour. So whatever loans like the loan benefits, you may still be eligible to receive small loans quickly.
Direct lenders who offer a benefit loan
The mass population of direct lenders offers loans for those people who have a benefit most likely the divisibility benefits. All of them will look at your ability to gave back the money completely without putting yourself in the danger of financial difficulty. Each lender requires a minimum amount of income that differs in each other. However, some lenders who have a short term benefit like for example the jobseekers allowances may become difficult to apply for a loan. That is because of insufficient income or you don’t have a stable job. Some people tend to find a loan since they don’t have a consistent and stable income.
Am I eligible to apply?
There is no secret to applying for a loan on benefits and getting accepted is much more complicated than applying for a loan if you don’t have a stable job or consistent income. Some lenders require their loans so we can never guarantee you 100% for your application to be accepted.
- Benefit loans are meant for people who through no fault of their own find themselves unemployed and living solely on the benefits that they are entitled to.
- These loans are an easy way for people on benefits to get fast cash when family and friends are unable to render financial help.
- Because these loans are for special people, lenders tend to offer very low-interest rates and a flexible repayment plan that fits right into their small income.
Benefit Loan FAQs
Does securing a loan have an impact on my benefits?
Taking a loan while you are on living on benefits will have no significant impact on your credit score or your regular benefits. This is further enhanced by the fact that direct lenders do not conduct credit checks when giving out this type of loan. However, your benefits may be affected if you go ahead to secure a loan from a family member or a bank that allows you to get all of the money you want in one single payment.
Can I still get a loan if I have bad credit?
Your bad credit score should not stop you from looking for means to solve your urgent financial problems. Thanks to the fierce competition in the market today, lenders are more accepting so that they can fall into the good books of prospective customers. This gives people with poor credit a chance to get the money they want from the lender that is willing to work with them. With the level of risk associated with lending to people with bad credits, lenders tend to increase APR and lending rates to compensate for the uncertainty they are getting themselves into.
How much can I borrow if I live on benefits?
This depends on the lender you choose to work with and what you need the cash advance for. However, because of your small income, lenders may not want to give you huge amounts in one payment. This is a good thing because it allows you to stay within your means while still having enough to meet your needs.
Lenders can give out as much as 1000 pounds to people living on benefits if the conditions are right. If you need to borrow a lot of money, you can try other loan formats that offer large amounts without credit checks like instalment loans. However, you will need collateral or a suitable guarantor for this loan to be granted. But we will advise that you only borrow the amount of money that you can afford to pay back.
What will happen if I default on the repayment plan?
Failure to make repayments when you are expected to do so may attract extra charges in addition to the interest you initially agreed to work with. Also, your credit score will be affected if you persistent default of the repayment schedule. But lenders are aware that these things may happen from time to time, hence they may be willing to cut you some slack if you reach out to them early enough. This is why you must only borrow money when you are sure that you have what it takes to pay it back.