Do you want to borrow money but lenders are reluctant because of your ‘on benefits’ tag? Certainly, it is painful to get a ‘NO’ on your loan application. Your mind asks – is it a crime to get a financial support or benefits during a tough time to survive?
However, before you lose hope completely, it is necessary to tell you that there are certain loan choices to help. Several reasons can justify that you can easily avail funds despite living on (any kind of) benefits.
The change in the lending culture
You must have heard about online lending. In other words, you can call it direct lending or new age lending or next generation online lending. It has changed the way the lenders work. Now people on benefits have in fact specialised borrowing choices like loans on benefits by direct lenders. It is a platform of getting money with an unprecedented flexibility. However, the lenders have their own rules to judge your application but they are quite different from the mainstream lending. The prime purpose of this platform is to assist maximum people to fight their tough times.
The liberal policy to consider primarily current repay capacity
Gone are the days when other factors like credit score, compulsion to be a homeowner, employment status, loan type, job stability etc. were the decisive factors. Now, situations are different. For new age lenders, the applicants with a satisfactory repayment capacity (irrespective of employment status) can qualify for funds. Due to this, it has become possible to get approved despite being on benefits. If you can repay the loan instalments, approval game turns in your favour.
THE SAFER WAYS TO APPLY FOR LOANS ON BENEFITS
Now when you know that getting funds while living on benefits is not impossible, work on the right way to apply.
- Gather all the possible income sources – One of the prime reasons that lending companies hesitate to approve people on benefit applicants is weak financial situation. However, for a very small amount, the income received from allowance etc. is sufficient. In case of a little big amount, it is advisable to show prominence on financial aspect. Income from job, part-time job, freelancing, rental income etc. all can come under consideration.
- One application to one lender at a time – Sometimes due to ignorance or in the hurry to get funds, people send multiple loan applications to varied lenders. Due to less number of choices for the applicants on government help, approaching to many lenders is considered a safe way to qualify easily. If one lender rejects at least the other will approve.
Do you also think in the same way? Sorry but you are wrong. Multiple applications invite search footprints of many credit checks done by the lending companies. This makes you look credit hungry and lenders reject your application. Make it a rule. One lender at a time. It is true that online lenders are flexible but they too want to avoid risky cases. Caution becomes more important when you apply for the loans on benefits by direct lenders.
Types of loans available for the people on benefits
There are ‘several to many’ types of loans that you can avail while living on benefits. Here are few general examples.
- Instalment loans – Borrow funds for a small tenure and repay in affordable monthly or weekly instalments.
- Bad credit loans – In case while staying on government financial help if you get into poor credit situation, apply for these loans.
- No guarantor loans – Short-term loans with no obligation of guarantor.
- Unsecured loans – Again short tenure funds with no collateral requirement. No risk to your assets.
- Christmas loans – Have a happy festival by borrowing a little but supportive amount.
- Loans for unemployed – Apply after job loss while you are living (specifically) on unemployment benefits.
NOTE – The above loan choices are for any type of government benefit except the unemployed loans that are only for jobless people on benefits.
Finally, when you are now aware of all the realities, it is time to pick your choice. For sure, the information above can ensure your reach to the easy loans in the UK for benefits. Borrow funds and fill the financial gap you are struggling with. ALL THE VERY BEST!