Searching for loans with a poor credit rating can be difficult. Even more so, if you need loans for bad credit no guarantor on benefits fast. However, we can make the process of finding a loan to meet your needs easier by putting you in touch with lenders willing to consider offering bad credit loans for people on benefits.
Do Lenders Provide Credit If You Are On Benefits?
Lenders will consider offering a loan to anyone who has a regular income coming into the home and who meets the following criteria.
- You are 18 at least when applying;
- Have a UK address;
- Have a bank account with a debit card linked to it.
However, it is important to bear in mind that not all benefits may be classed as a regular income by lenders. Pension credit, child support payments, housing benefits and income support are generally not classed as income by lenders.
Some of the benefits that lenders usually consider regular incomes include:
- Disability living allowance;
- Severe disablement benefit;
- Incapacity benefit;
- Family allowance;
- Family tax credit;
- Fostering income;
- Tax credit when part of the net pay.
No type of loan is guaranteed, as lenders will consider various things when deciding whether to offer you a loan. Your income is one thing, along with affordability and your credit rating.
Types of Loans for Bad Credit no Guarantor on Benefits You Might Consider
When searching for bad credit loans that do not require a guarantor you might want to consider the following loans.
Secured Loans for Long Term Large Sums
If you need to borrow a large sum of money and require the repayments to be spread out over a long period you are unlikely to be approved for a personal loan. In this case, you might stand a better chance of getting a secured loan.
Lenders might be more willing to offer thousands of pounds with a secured loan as you secure something against the loan. Depending on how much you want to borrow this might be a vehicle or property. It is important to bear in mind you stand to lose whatever you secured if you cannot repay the loan.
When considering a loan over a long term go for the lowest APR possible for your circumstances as this determines how much interest you pay on the loan overall. While you will not be given the most attractive interest rates with a poor credit rating the lenders we work alongside do offer some of the most competitive rates.
Short-term Loans for Mid Length Borrowing
If you want to borrow up to £1,000 and spread the repayments for up to 12-months a short-term loan might be more suitable.
You do not need a guarantor with a short-term loan and you do not have to put up anything as security against the loan.
Payday Loans Paid Back within Three Months
A payday loan might be more suitable if you want to borrow just a small sum of money and you can repay it within three months.
Lenders usually offer between loans of £100 to £500 that you can pay back on your next payday or spread over three paydays.
The quicker you repay the loan the less interest will be paid but of course, you do have to pay the loan and interest in full out of one payday. The loan is more affordable in the short term if you spread it over three repayments, but it does cost more in the end to borrow this way.
We Match You with Lenders
We can help to match you with lenders who are willing to consider offering loans to people with poor credit ratings who are on benefits.
We work alongside a large panel of UK lenders who will consider verifiable income along with your income, outgoings and loan affordability.
Lenders we work alongside offer a range of loans, plus some of the most competitive rates. Apply for loans for bad credit no guarantor on benefits with our help today and get an instant decision.