Loans For People On Benefits
There are different loan types for people regardless of their age and status. People who are on benefits are not exempted from the financial assistance by loan lending companies to improve their living condition or attend to some urgent financial responsibilities.
If you are already receiving some benefits, getting a loan will be of immense use in meeting up with some necessities. Some of these necessities are clothes, furniture, food, and others that you may feel crucial to your continued existence. No matter what your necessities are, this loan will be handy in helping you meet them.
The qualification for this loan is determined by some factors such as:
- The borrower must have been receiving the benefits for the minimum of 26 weeks. Some of the benefits include income support, disability benefits, working family tax credits, housing allowance, support allowance, jobseeker’s allowance or some pension credit.
- Your ability to repay the loan is also a big factor.
- The type of benefit you enjoy will impact the type of loan you can apply for and the loan amount you are eligible for.
- Another factor that may influence your qualification is your credit history. If your credit rating is poor, you may find it challenging to get a lender who is willing to give you a loan. If you eventually find, the interest rate may be high to make allowance for your poor rating.
- Your employment status is another factor you cannot overlook when looking for a loan while on benefits. If you are unemployed, it becomes a herculean task to get a willing lender for fear of repayment. If you have other sources of income despite your unemployed status, you still have a relatively high chance of getting a lender who is ready to go all the way to lend you a loan.
Why do you need the loan?
While such benefits are great, you can’t count on them to meet all your basic necessities. Sometimes, unforeseen occurrences may make it difficult to go by on the benefits. You must complement the income from such benefits with a loan to have an adequate resource to meet up with your needs.
You also need the loan to attend to some other needs like paying for your rent, funeral expenses, repaying store cards or credit cards, maternity expenses, or home renovation.
Other areas where you may need the loan despite your benefits include using it to finance your education if you are training for a different career, travel expenses, and take care of your car or other needs that cannot be adequately covered by your benefits.
In the United Kingdom, there are tonnes of lenders who have loans for people on benefits in their plan. You may find one who will meet all your needs and lend you a loan that you can repay over a period of time at a monthly repayment amount that is easily affordable for you.
Therefore, don’t be brainwashed into thinking that all you can get is your benefit; there are other options to lead a better financial life.