Are you currently receiving benefits as your sole source of income? Then at Personal Loans Now we may still be able to provide you with the lending that you want. Apply for benefit loans today through us and you may be able to receive between £1,000 to £25,000 instantly. All you need to do is click apply now, and we’ll start going through an application, showing the lenders best placed to help you.
What are Benefit Loans in the UK?
Benefit loans are ideal for someone receiving regular benefit payments as part of or most of their income. For example, child benefit loans or income support benefit loans in the UK are possible solutions. We can help provide you with much-needed credit when you need it. Especially if unexpected bills arise or you need a helping hand. Benefit loans in the UK can be provided in different ways depending on your circumstances. We understand that many people who may not be in full-time employment receive a benefit payment of some form. This means that although in the eyes of many lenders you would not be eligible, we can take a different approach. We can offer a payday loan alternative that provides lower interest rates.
How Do Benefit Loans Work?
We take into account your whole financial situation and not just your credit rating and employment status. This way we can look at what your affordability is and determine the best benefit loans available. Using our innovative credit on demand system, we can show you a database of over 40 lenders. All can potentially help you in your current situation. When you apply for benefit loans in the UK, we’ll provide you with a personalised table of loan offers. All you have to do is decide on the one that meets your requirements best; just click apply now, and we can get started.
Why Should I Use Personal Loans Now for Benefit Loans?
There are many great reasons to use us for your application for benefit loans, including:
Fully Online Application Process – With one click, you can start the online application process to find the best deals.
Instant Payout – If you are approved, we can credit your bank account on the very same day.
Low APR Rates – we can show you the best available rates and terms for your circumstances.
Guarantor & No Guarantor Loans – we have a wide range of options depending on your affordability.
These are just some of the reasons we can help you with benefit loans today, with our aim to help as many people as we can with our high acceptance rates; apply now!
What Do I Need to Apply for Benefit Loans Today?
To be eligible to apply for borrowing through us, you’ll need to meet the following eligibility:
- Are currently aged 18 years or over
- Are a UK resident
- Have a valid bank account
- Have a regular source of income
These are the minimum requirements, with further questions asked as part of your application. Depending on your own circumstances, the range of options will vary when it comes to benefit loans. For example, in some cases, you may not be able to apply for the full amount you want. A lender may only be able to process the application if a guarantor is part of the application. This will need to be considered before you proceed with an application.
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Can I Apply for Benefit Loans with Bad Credit?
Yes, we welcome applicants who not only receive benefit payments but also those who currently have bad credit. However, we cannot guarantee your application will be successful for the full amount and terms requested. This is because we need to consider your full financial situation which will include a credit search. If during the application you’re deemed ineligible for a loan through us, we’ll connect you with other loan companies.
Just because you have bad credit doesn’t mean you cannot receive the funds you want. It could mean higher rates of interest or shorter repayment terms. In some cases, you’ll only be eligible to apply for a maximum of £7,500 with benefit loans. This is if your affordability is low and credit rating poor. The good news is, receiving your personalised table of compared loans doesn’t require any credit search. So, you’ll be able to see what the potential benefit loans you can receive are first before you decide. This will provide a better way to apply then through traditional doorstep loans.
Do I Need a Guarantor to receive Benefit Loans?
This is a possibility and depends on what your current affordability and credit rating is. You’ll need to have a good credit score and have the disposable income for repayments. If so, there is a chance you can be approved for non-guarantor loans. If a lender sees you as high risk, you may need to apply for benefit loans with a suitable guarantor. This is because the lender will need further guarantees that repayments can be met as per the credit agreement.
Who Can I Use as a Guarantor for Benefit Loans?
If you need a guarantor during the application for benefit loans, you’ll need to consider the following:
- You can choose someone who is a relative, friend, or co-worker,
- They cannot be a spouse or someone you share a joint bank account with,
- They need to be at least over the age of 21, and not older than 75,
- They must be in full-time employment,
- They need to have a good credit history
As a guarantor will be co-signing, they will need to be in a much stronger position financially than yourself. This is because they’ll be responsible for the loan repayments if you fail to maintain them. You will need to think carefully about who your chosen guarantor will be. As long as they can meet the above, there is a high chance of being accepted for benefit loans.
Benefit Loans FAQs
What Happens if I Cannot Find a Suitable Guarantor for Benefit Loans?
If you cannot find a suitable guarantor for benefit loans, you may find you can’t receive the loan you want. Because of the high risk involved, having only benefit payments as an income can mean some lenders can’t help. However, depending on your current situation, there may be some other options for you.
Other Unsecured Borrowing – there are many other lenders available, many of which we work alongside. You may find that the rates of interest will be much higher or the length of time to repay the loan will be much shorter.
Bank or Building Society Loan – your bank may be able to offer a solution as you’re already their customer. If you haven’t already explored this option, it’s well worth asking them and seeing what can be done.
Credit Unions – A credit union is an alternative to a bank that can provide you with the help you need. You’ll need to become a member of the credit union that suits your circumstances best. But as they’re a not-for-profit organisation, they can help where others cannot.
Credit Cards – A credit card can be a great option due to their flexibility. However, because the interest is applied as you use it, it can be more difficult to manage. You may be able to apply for low-interest credit cards or even ones with 0% offers for a period. For example, 12 months, but if your credit rating is poor, you can end up paying higher fees.
Can I Apply for Benefit Loans With No Fees?
Yes, our benefit loans require no fees as part of the application. If we can approve your benefit loans in the UK application, you’ll have a full breakdown of what’s included. Some direct lenders may charge a fee but will detail this upfront before you proceed with an agreement. We recommend you fully read the terms so that you are not charged anything unexpectedly.
Can Benefit Loans Improve My Credit Score?
If you’re approved for benefit loans, they can be a great way to improve your credit score. This is because you’ll start to build trust with the lender. As long as you can maintain your repayments, you’ll slowly start to build up your credit rating. This will leave you in a much better position once the loan is paid off than before. You’ll then be able to apply for higher amounts in future, such as with secured loans.
What is the Fixed Rate APR with Benefit Loans?
You may find that if you’re accepted for benefit loans with a guarantor, your overall costs will be much cheaper. This is because you’ll be seen as a much lower risk overall. At Personal Loans Now, we offer a fixed rate of interest at 39.7% representative APR. However, if we cannot approve your application for benefit loans, the rates of interest may change. The fixed-rate may be higher or maybe a variable rate. This would mean the interest can go up as well as down. You’ll need to carefully consider this during your application to ensure you understand the interest charges.
How Much Can I Borrow with Benefit Loans?
Although we offer loans between £1,000 up to £25,000, you may find you will be limited to a maximum of £7,500 with benefit loans. This will depend on your current affordability, your guarantor’s financial situation and the lender. Unlike an applicant with a high disposable income and better credit, you could be seen as high risk by lenders. Additionally, as responsible lenders, we wouldn’t want to cause further strain on your finances.