Do you want to confirm whether getting loans whilst on benefits is possible? Financial assistance is accessible when you might be facing a special condition like disability or unemployment. The reason does not matter anymore, as loans are still accessible to you.
Your status as a receiver of benefits is not questionable until it fits the lending criteria. Although lenders will respond differently to your loan query, some will surely accept your request. Therefore, getting loan help is possible even when you are living on benefits.
If the amount you get as benefits is noteworthy, getting benefit loans from a direct lender is a cakewalk. Navigating through a tough financial spot need not be challenging when you depend on benefits. You can get external support at better rates to overcome the crisis.
Address any pending cash issue by choosing an ideal amount of loan. There is no need to postpone any urgent financial matter as you can have money on the go. Do not hesitate to seek assistance when loans are available to help you overcome such occasions.
Dive deeper into this blog to learn more about this loan option. See how, despite being on benefits, your application will not face any restraint.
Considerations before applying for loans on benefits
In any circumstance, these loans can come in handy. The loan provider will treat your benefits as a source of income. Your eligibility is not restricted to this point only.
Other factors are there which must grab your attention without fail. Continue reading if you look forward to understanding them.
Impact of credit history
Poor scores hamper the confidence of the borrower as it can lower their chances of approval. No need to be stressed while applying for these loans, which accept all credit history. Smart provisions like joint loans for bad credit people are lifesaving.
Here, the poor credit scores of you both will not be a matter of concern for the loan provider. They will consider the combination of your incomes at the time, validating the chances of repayment. Therefore, these loans are easy to access for you despite disability or job loss.
The reasons are:
- Bid adieu to hard checks – The formality of hard verification discloses information about your credit scores. Since the lender already allows low scores, there is no question of facing such checks.
- Be ready for soft checks – This is a mild evaluation of your financial profile. The focus will be on your current financial dealings, which, if they happen on time, there is no reason for you to worry. These checks help extract information about your affordability.
Interference of a guarantor
The guarantor factor becomes necessary when you have very low scores without any sustainable source of income. You have poor scores here, but your dependency on benefits is a blessing here.
You do not have to look back if it can convince the lender about repayment. All that is necessary is a perfect financial scenario where you are managing your usual needs with whatever you are getting as government support.
You can get loans for additional and unforeseen needs. Besides, with a part-time source of earnings, your matter can become stronger before the lender. Benefits and side income make sure that you have stable financial ground.
Keep aside your fear of facing a requirement like a guarantor. You already have enough to win the confidence of the lender. Fulfilling this requirement becomes mandatory when you have insufficient income and very poor scores.
That person will take responsibility for loan payments. Getting a guarantor can enhance the chances of loan approval, if the person has a good credit history and stable income.
Complicacy of the process
Since you receive benefits, it does not mean the application process should be complicated for you. Direct lenders like 1one Finance follow the same rule for every borrower. They will allow you to submit an online application without paying a visit to any bank or financial institution.
Their website has all the details you might want to verify before sending out a loan request. Above all, it facilitates you to access the online form. You can receive a free quotation by filling out and submitting this form.
The procedure is simpler than the traditional method that makes you wait for days. The loan provider will work promptly on your request. It makes sure that getting a reply is not time-consuming when you are with a direct lender.
Validation for the purpose
You need not have to be too strict about the purpose. It is because the reason for borrowing can be to pay a sudden bill. The lender will not ask you to explain the purpose.
However, you should be cautious about how you can make the most out of these loans. A wrong purpose can put you in a troubled situation. Besides, it can make the loan payments difficult for you.
Understand the purpose first, then finalise the loan amount. Try to keep the amount within a comfortable range so that repayment is easygoing for you. Choosing the right amount is very vital, as the repayment duration will depend on it.
Repayment concerns
When you depend on benefits, loan payments will be hard for you. However, direct lenders plan a feasible repayment facility. It lets you pay back in small amounts over months.
You do no need to return the amount together in a single time. You should be ready with the required loan amount once the deadline arrives. Failing to repay loans will not be fruitful in your situation, as the debt burden will shoot.
The interest rates will start accruing, and your credit profile will have to accept a further blemish.
The bottom line
You can live on benefits for various reasons. This has nothing to do with your eligibility to get loan help. This blog must have been able to establish this fact. Remind yourself about the vital concerns before applying for these loans. Step away from borrowing if you think it is not worth it in your current situation.
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.