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Navigating the financial aspect of your life can prove to be a difficult task. Whether it’s general expenses that weigh on your savings or more urgent matters such as an unexpected bill, almost everyone will face a time when money becomes a prominent concern.
There is no shame in seeking out assistance, however many are led to believe that their special circumstances render them ineligible for the help they need. This rings especially true for those interested in benefits loans, as benefits from the government can complicate the process of assessing whether an applicant will be cleared for a loan.
Before you take the first steps in applying for a loan, it would be prudent to take stock of your circumstances first. If you require emergency relief and have been on certain benefits for the past six months, you may be entitled to a BUDGETING LOAN or BUDGETING ADVANCE from the government. These are interest-free, meaning that you only have to pay back exactly how much you owe.
You can use budgeting loans for rent, household items, moving costs, and various other expenses. If you receive Universal Credit, budgeting advances are available as urgent financial relief for essential needs like rent or food. You can read more about them, as well as check if you’re eligible, on the official Government Website linked above.
If you still wish to take out a loan, it’s important to be educated on the impact debt could have on your life moving forward. Although this page aims to be helpful to you as possible, we completely understand if you want to conduct further reading on these important decisions. A great place to start is the debt and money section Citizens Advice has been compiled with useful information.
There’s plenty of resources out there for those seeking benefits loans. You can use the knowledge gleaned to form a plan on how to pay off your debt plus the incurring interest. Those of low or limited income need to know exactly what they’re getting into. A poorly thought-out loan could land you in a financial situation worse than where you began.
You may not even be taking advantage of some benefits that you’re entitled to, as people’s situations can change in subtle ways, or the requirements to be eligible may change. So make sure that you utilize a benefits checker to see what you could be missing.
It’s possible to apply for and be granted a loan while receiving benefits. When a lender evaluates a potential borrower, a whole host of factors come into play that could influence their decision. Besides the obvious things like credit score, they may also look at your current income, employment history, what you plan to do with the money, and anything else they deem relevant to their decision. So be prepared to present them with what they ask for if you can.
A lender’s top concern is ensuring their applicants can pay back the loan they took out. That’s why loans for unemployed people on benefits can be tricky to obtain, seeing as they don’t have a set path to pay it all back. You can tip the scales in your favour by being employed when applying for the loan, as you’re more likely to be able to make the necessary payments on time. A general guideline is they prefer handing out smaller loans as it minimizes their risk, and they will want it paid back as fast as possible.
But say you’re unemployed, and currently receiving benefits from the government. It is still possible to successfully take out a loan, but your options could be limited as compared to having the benefits and employment. Other types of loans like payday loans for people on benefits will be less common, as those often require paystubs from your occupation or employer. You may even be able to negotiate a lower interest rate if you are clear about your current situation, This can also help with the lenders offering you a competitive APR that’s manageable for your finances.
Just like how lenders have numerous factors to consider before reaching a decision, the same may be true for you. The benefits that you’re on may not all be equal in the eyes of a lender. While there most likely aren’t any benefits that will cause them to outright deny you a loan, some will be more appealing to them than others. They may even determine what kind of loans you are offered, as there could be lenders who will present you with loans for people on benefits with no fees, reducing the overall cost in the long run. If one lender denies you, that doesn’t mean all the other ones will do the same. Different lenders deal with and specialize in different situations in their unique way, meaning options are available, though limited and may not be the most congenial for you.
REMEMBER: IT IS IMPERATIVE THAT BORROWERS FULLY UNDERSTAND THE PAYMENT TERMS AND INTEREST RATES BEFORE THEY FINALIZE THE LOAN. ESPECIALLY FOR THOSE WITH LOW OR LIMITED INCOME IN A DELICATE FINANCIAL STATE.
The process of applying for a loan is now much easier, as compared to applying to different lenders individually. By comparing dozens of lenders at once, our speedy loan matching system condenses all that waiting to just about 5 minutes. We look at many different lenders with an entire range of APRs. The lender tool we utilize also makes sure that the one it selects has a higher likelihood of approving you for a loan, based on the small amount of information that you give us.
We want your experience to be stress-free, so make sure to prepare details regarding the benefits you have should the lenders ask for it.
We believe that the time of potential borrowers is valuable, so our quotes are quick and very easy to get. First, use the slider to adjust the amount you wish to receive, then submit the form we provide that only takes 2-3 minutes to fill out. Once you’re done, you should already be viewing the results within 1-2 minutes. Once we have determined the lenders who are most likely to assist you, we will select the best candidate among them according to the information you submitted and redirect you to their website.
From there, you can read more about them and decide for yourself whether they are a good match for your needs or not. If you find that they are, you can begin to formally apply for the loan!
Any data that you input into the Now Loan lender matching software is protected and encrypted. The information on your application is sent straight to your ideal lender, and brokers through our partners, for their eyes only. No matter what the result of the application is, Now Loan will never store your information, nor share it with anyone else. Our main goal is to help borrowers in getting loans that suit them, thus we take their privacy and confidentiality very seriously. You can rest easy knowing that your security will never be compromised while using our service.
Not only is a quote from our panel of lenders easy to obtain, but it also won’t have any hidden drawbacks or effects. When you employ the use of Now Loan’s software, the system will not perform a hard credit check, meaning your credit score won’t be affected. This will only occur during the formal application process when the lenders assess your credit score, previous employment, and details regarding the benefits that you receive. Meaning you can safely test the waters without having to experience any unforeseen side effects.
After you’ve breezed through our free and easy application process and have gotten in contact with your ideal lender, you’re free to discuss with them the terms of your loan. It’s very important to understand these fully, as you’ll now have to pay what you owe back, plus interest. Depending on the amount you took out, the lender could send the money within minutes of you finalizing the deal. It may not appear in your account that quickly, as a few different things can delay the procedure. Such as your bank verifying the origin of the money, or holidays where their services are temporarily put on hold.
That’s it! We sincerely hope that our system has led you to a lender willing to approve you for an appropriate loan. Best of luck!