If you don’t have any collateral for a loan, the best option you have is an unsecured loan. Going for an unsecured loan requires no collateral to be approved. However, interest rates are slightly higher than secured loans. Typical unsecured loans are credit cards, student loans, payday loans, and more. Lenders don’t need to do a credit check but interest rates may depend on your credit standing.
The platform is highly secured and protected. You don’t have to worry about the information you provide. The information provided online passes along a secured channel that ensures data integrity and prevents it from being compromised. It is guaranteed safe and secured.
Paid Into Your Account
The payment goes directly to your account fast and without hassle. In just a few minutes, you’ll get the funds that you need when you need it. You don’t have to visit banks while waiting for hours just to get an approval. It is the most convenient way to borrow funds in case of emergencies.
Your credit won't be a hindrance when applying with us. The lender doesn’t do credit checks. It is available to everyone regardless of their credit levels. So if you're hesitant about applying for a loan, don't be. Even with poor or bad credit, you can still borrow the funds you need whenever you need it.
DO I NEED TO HAVE
Tips on Acquiring Loans While on Benefits
Being on benefits usually means you are already financially challenged and more often than not, you might find yourself in a situation where you might need to pay for something that you just do not have the extra money for. If you are currently on benefits and need some extra cash for emergency expenses, instead of taking out a regular loan, you might want to consider applying for a Budgeting Loan.
Extended from the Social Fund, it is interest-free and is certainly much cheaper compared to paying hefty charges on doorstep and payday loans.
This type of credit can help you pay for unexpected and essential expense when your income is low. There are a wide range of things that these funds can be used for such as buying a household equipment or furniture, buying footwear or clothing, travelling expenses, advance rent, as well as funeral or maternity expenses among others.
Budgeting loan eligibility
To be eligible for a Budgeting loan, you need to be getting such benefits as Income Support, Pension Credit, Income-related Employment and Support Allowance, and Income-based Jobseeker’s Allowance. It is also required for you to be claiming benefits for at least 26 weeks with no more than 28 days break.
The minimum amount you can borrow is £100 but there are certain factors that might affect how much you are allowed to borrow. For instance, it will be checked if you have any other existing loans from the Social Funds. They’ll check too if you have savings of £1,000 or more.
Paying back a budgeting loan
Repayments for this type of loan are interest-free. At the same time, they are calculated at the time that the credit agreement is signed, so you wouldn't have to worry that the repayment figures will increase over the loan's term. While terms may depend on the amount that you are borrowing, borrowers are typically expected to pay the amount back within a period of two years. In addition, the repayments are automatically deducted from the benefits that you are getting, so you do not need to do anything.
If you stop being on benefits while the loan term is ongoing, you will need to agree on another way to get the amount paid off. In the event that you reach a point where you can no longer afford to pay off the loan, all you need to do is go back to the office that has been paying you your benefits in order to sort out a repayment plant. This is to ensure that you will not fall into debt just to pay off the budgeting loan.
If you’re receiving benefits or unemployed, you’ll find that there are loan options available for you. Whilst it is true that finding a loan hen you are getting benefits could be quite difficult, you’ll find that there are lenders who may be willing to extend to you the cash boost you require. You just have to find the right one.
Will you get accepted
Criteria for acceptance generally vary per lender. Part of the minimum requirements they have would be for you to be 18 years old at least and to be able to show proof that the costs involved will be affordable enough for you.
What are the costs
How much you’ll need to pay would depend on how much you plan on borrowing. In addition, the length of time that you intend to repay the loan is also going to affect how much the costs are going to be.
Types of loans available on benefits
Guarantor loans are available for those on benefits. This is where the borrower will have to present somebody with a good credit score to guarantee the loan. The guarantor is expected to make the repayments if the borrower is no longer unable to do so. However, it is important to note that a loan of this type can be expensive with some lenders charging about 40-50% on APR.
Short term loans
These loans that are payable within a short term tends to cost a lot but could be something that those on benefits can consider applying for. There are providers that are willing to cater to low credit score borrowers. However, it is important to consider this only as a one-off for emergency cash needs and should not be considered a long-term financial solution.
When getting a loan, it is necessary that you will only borrow what you can afford to pay. You want to get your repayment done on time to avoid any more damage to your credit file. Sue this opportunity to fix your credit score for better loan options in the future.