People with a bad credit rating often struggle to find approval for loans as it is. However, if they need a loan and they are on benefits that struggle can often become even more difficult. So, is it possible to get loans for bad credit no guarantor on benefits?
It is possible to get a loan if you have a bad credit rating and you don’t want a guarantor loan and you are on benefits. However, no loan is guaranteed. It all comes down to how poor your actual credit is and the type of benefits you receive.
Types of Loans That Might Be Available
If your credit rating is poor, some types of loans might be easier to find approval for than others. You might want to consider applying for:
- A payday loan;
- Short term loan;
- Secured loan;
- Personal loan.
The payday and short term loans are generally the easiest types of loans to find approval for with poor credit ratings due to the fact that only a small sum of money is borrowed. The personal loan is the most difficult to find approval for as it offers a larger amount of cash to be repaid over a longer term.
Payday and Short Term Loans for Bad Credit No Guarantor on Benefits
A payday loan is generally the easiest loan to get approved for with a bad credit rating and when on benefits. With this type of loan you may be able to get a loan offering in the region of £100 to £500.
This may be ideal if you are met with a financial outlay that was unexpected, such as to pay a bill that you had forgotten about and not budgeted for or unexpected repairs.
The payday loan can be repaid on your next payday or spread out for up to three paydays if required. Interest is added on daily, so the least amount of time you take the loan over the less it will cost.
Short term loans for bad credit no guarantor on benefits allow you to borrow somewhere in-between £500 and £1,000 with the repayments spread out for up to 12 months.
Secured and Personal Loans
A secured and personal loan will allow you to borrow up to £15,000 if you are eligible. The secured loan means you put something up a security against the loan repayments. This is generally your car or home. Whatever you put up as security may be lost if you fail to make the repayments of the loan.
The personal loan also offers the same amount of money, but it is unsecured. This type of loan is generally more difficult to find approval for with a bad credit rating.
Benefits Generally Classed As Income
One of the criteria you have to meet when applying for a loan is to have a regular income. This can apply to an income from work or benefits. However, not all benefits are classed as a regular income. For instance, you might be eligible for a loan if you are paid:
- Employment and support allowance;
- Disability living allowance;
- Universal credit;
- Personal independence payment;
- Pension credits.
The type of benefit classed as an income is down to the lender.
Applying For A Loan Is Easy
To apply for loans for bad credit no guarantor on benefits with our help simply tell us how much you want to borrow and how long you want to spread the loan over. We can then try to match you with a lender from our panel of lenders who is willing to offer you a loan. If we match you with a lender, you can check out the loan details, then go ahead, and sign up. Lenders we work with offer some of the most affordable rates along with considering all circumstances.