Can you get a loan on welfare? Here's how to get the cash you need
Loan on welfare personal loans

How to get a loan when you’re on welfare

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Welfare doesn’t make you ineligible for all loans. Here’s how to compare your options for borrowing money.

Welfare recipients have unexpected expenses, just like anybody else. And they may need to take out loans from time to time.

If you’re currently on welfare, you may wonder if you’ll be able to get a loan. The good news is that you can. In this guide, we explore the types of loans you may be eligible for and how you can get them.

Which lenders accept applicants with alternate income?

ProviderGenerally acceptedConditions
ACE Cash Express?Full application determines whether it’s acceptable or not.
Advance America?Full application determines whether it’s acceptable or not.
CashNetUSAYesBenefits count as an acceptable source of income.
Cash CentralYesRetirement pensions and Social Security benefits count as an acceptable source of income.
Check City?Varies based on state laws.
Check into Cash?Varies based on state laws.
LendUp?Varies based on state laws.
LendYou?Full application determines whether it’s acceptable or not.
OppLoansYesFixed income is accepted, but not preferred.
ProviderGenerally acceptedConditions
ACE Cash ExpressYesMust show proof of income.
Advance AmericaNoMust show proof of income, requirements vary by state.
CashNetUSAYesMust show proof of income, requirements vary by state.
Cash CentralYesMust show proof of income, requirements vary by state.
Check CityNoMust show proof of income, requirements vary by state.
Check into CashNoMust show proof of income, requirements vary by state.
LendUpNoMust show proof of income, requirements vary by state.
LendYouNoMust show proof of at least $1,000/month income, requirements vary by state.
OppLoansNoMust be employed for 3+ months and receive paychecks via direct deposit. New Mexico does not require direct deposit.
ProviderGenerally acceptedConditions
ACE Cash ExpressNoMust not currently be a debtor in bankruptcy or intend to voluntarily file for bankruptcy.
Advance America?Full application determines whether it’s acceptable or not.
CashNetUSAYesDischarge from bankruptcy is acceptable.
Cash Central?Full application determines whether it’s acceptable or not.
Check CityYesBankruptcy that’s been discharged for 30 days is acceptable.
Check into Cash?Full application determines whether it’s acceptable or not.
LendUp?Full application determines whether it’s acceptable or not.
LendYou?Full application determines whether it’s acceptable or not.
OppLoansYesDischarge from bankruptcy is acceptable.

Loan options for welfare recipients

It’s time to look for a lender that accepts your level of income and credit score. Carefully read a lender’s terms before signing anything, and be willing to walk away if the interest rate or fees are too high.

Car title loan

With a car title loan, you put your car up as collateral — meaning if you fail to pay your loan, the lender can repossess your car.

You can get this type of loan with bad or nonexistent credit, and income verification is typically minimal.

However, car title loans are known for extremely high interest rates.

Payday loan

A payday loan is usually given for a small amount, and you typically pay it back when you receive your next paycheck. Some payday loan companies accept welfare checks as an income source.

However, as with car title loans, watch out for high interest rates that could dig you deep into debt.

Get matched with a lender for a personal loan

Through online resources like LendingTree and Zippyloan, you can enter your personal details to get matched with a lender who fits your credit and income profile. Check with your lender to see if they accept welfare income.

Banks or credit unions

Your bank or credit union may be willing to give you a loan if you’ve been a longtime customer without any blemishes on your financial history.

Consider online banks as well, which may offer lower interest rates.

Short term loans you can apply for

Rates last updated June 21st, 2018
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Max. Loan Amount Turnaround Time Requirements
Check into Cash Payday Loan
With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.
$1,000
1–2 business days
You must be at least 21 and an American citizen and have a bank account, email address and phone number.
LendUp Payday Loans
LendUp offers $250 loans for first-time borrowers. Good credit is not required. Visit the site to see if available in your state.
$250
generally receive the money the next business day
Be 18+ years of age and have a checking account that can accept electronic transfers.
CashNetUSA Loan
Apply for a short-term loan with an easy online application and dedicated customer service.
Varies by state
1 business day
You must be a US citizen or permanent resident, be at least 18 years old and have regular income and a bank account.
ACE Cash Express Payday Loans
Quick payday, installment and title loans with no prepayment penalty and a 72-hour satisfaction guarantee. Funds can be loaded on an ACE Elite™ Visa® Prepaid Debit Card.
Varies by state
Generally receive the money the next business day
Must be 18+ years old, have a steady source of income and a checking or savings account. Must not be a debtor in bankruptcy.
LoanByPhone Payday and Installment Loans
This mobile lender offers convenient cash loans. Apply online or by phone.
$3,000
1–2 business days
Must be 21 years old and have a Social Security number, a regular source of income, a valid email address, an active checking account and a phone number.
BadCreditLoans.com
With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
$5,000
Varies
Depending on lender requirements, people from all 50 states may not be eligible for a personal loan.

Compare up to 4 providers

Rates last updated June 21st, 2018
Unfortunately, none of the short term loan providers currently offer loans in your state. Learn more about short term loans in your state to find an alternative.
Name Product Product Description Max. Loan Amount Turnaround Time Requirements
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
$4,000
1 business day
Open to residents of AL, AK, AZ, CA, DE, FL, GA, ID, IL, IN, KS, KY, MI, MN, MO, MS, NE, NV, NM, OH, OK, OR, SC, TN, TX, UT, VA, WI and WY. Must have direct deposit and meet minimum income requirements.
CashUSA Installment Loans
$10,000
As early as 1 business day
Monthly income of $1,000+ after taxes and valid checking account.
Slam Dunk Loans
Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.
$2,500
As soon as next business day
Must be employed, receive regular income, earn at least $800 a month, have a checking account, be 18+ yrs old and a US citizen.
BadCreditLoans.com
With straightforward, simple qualifications, these loans offer easy approval for people with poor credit.
$5,000
Varies
Depending on lender requirements, people from all 50 states may not be eligible for a personal loan.
CashNetUSA Loan
Apply for a short-term loan with an easy online application and dedicated customer service.
Varies by state
1 business day
You must be a US citizen or permanent resident, be at least 18 years old and have regular income and a bank account.
Blue Trust Loans Installment Loans
Get an installment loan from an online tribal lender. Perks for returning borrowers.
$2,000
As soon as next business day
Must be at least 18 years old and have a verifiable source of income with direct deposit into your checking account.
HonestLoans Installment Loans
Get a flexible installment loan with fast funding through one easy online application form.
$2,500
As soon as one business day
Must be employed and receive regular income, earn at least $800 a month, have a checking account and be an 18+ years old legal US citizen.
MaxLend Installment Loans
Get up to $1,000 as a first-timer, with loans of up to $2,000 and lower APRs for repeat borrowers.
$2,000
As soon as the next business day
Must be at least 18 years old and a US citizen, have a valid bank account and provide a verifiable source of income.

Compare up to 4 providers

Does being on welfare affect my credit?

Being on welfare doesn’t affect your credit. Credit bureaus are not notified when you apply for welfare, and by law they’re not allowed to include welfare benefits when calculating your credit score.

As with any loan, you’ll have a better chance of receiving one if you have good credit. There are still loan options if you have poor credit, but the terms will not be as favorable — you will receive higher interest rates, for example.

If your credit currently is not where you want it to be, consider rebuilding it with a secured credit card.

How does income affect my ability to get a loan

You won’t be barred from getting a loan just because you’re receiving welfare income. Some lenders may not accept welfare income, but many others will.

More likely, the bigger issue is that your income is limited while you’re on welfare. Lenders want to see that you have low debt relative to your income, and this may make it more difficult to get a loan. However, if you search widely enough, you should be able to find a lender that will work with your current income.

What to watch out for

You may desperately need a loan, but consider your ability to repay it. Carefully check the terms given to you by any lender before you sign an agreement. Many unscrupulous lenders target low-income individuals and welfare recipients, trapping them with expensive loan repayments.

We’ve included car title loans and payday loans in our following list of loan options. While they are options for you to consider, remember that these types of loans are notorious for sky-high interest rates. It’s not uncommon to see three-digit APRs — like 400% APR.

By contrast, the average APR for a personal loan is around 11%. Even if you have bad credit, the average APR for a personal loan is around 28%.

Also watch out for fees. Some personal loans, for example, often come with origination fees, which you pay before receiving your loan. Lenders may bury fees in the fine print. Read the loan terms in full so you’re not surprised later by unexpected payments.

Next steps

Online loan sources are great options, and we recommend pursuing those first. When you find a lender that might be right for you, take the time to understand the agreement you’ll be entering into.

Once you’re satisfied with the fees and interest rate, sign the loan terms. You should receive the loan in your bank account within one or two business days.

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8 Responses

  1. Default Gravatar
    TeresaJune 18, 2018

    Ok. Im looking for a loan but I’m on welfare plus I do have a job taking care of this lady. Her daughter is who pays me for caring for her and she pays me cash. Do I put her daughter’s name down as employment even though I’m getting paid cash?

    • finder Customer Care
      JoshuaJune 19, 2018Staff

      Hi Teresa,

      Thanks for getting in touch with finder. I hope all is well with you. :)

      Most lenders would determine your ability to make a repayment. Your welfare and the money you get from taking care of the lady can be considered as an income. If you can come up with the necessary documents proving your eligibility, there’s a higher chance that your loan would be approved.

      I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.

      Have a wonderful day!

      Cheers,
      Joshua

  2. Default Gravatar
    CheriseSeptember 6, 2017

    Hello i was wondering if i can possibly qualify for a loan i am gonna be receiving welfare in a week or 2 it is still pending, will that affect my chances of being approved?

    • finder Customer Care
      JhezelynSeptember 8, 2017Staff

      Hi Charisse,

      Thank you for your comment.

      There are some lenders that will consider you for a loan based on your level of income and credit score. The lenders above may see you eligible for a loan if you’re on welfare. You can apply for any lenders listed here by clicking on the Go to site button. This will securely transfer you to the relevant financial institution’s website. There is no fee for applying from this page. Please make sure to meet the eligibility criteria before submitting an application.

      Regards,
      Jhezelyn

  3. Default Gravatar
    AprilJune 2, 2017

    If approved for a loan and you receive welfare but have only that card account how do u receive loan without an actual bank account?

    • finder Customer Care
      HaroldJune 19, 2017Staff

      Hi April,

      Thank you for your inquiry.

      Typically, You should receive the loan in your bank account within one or two business days. If you don’t have an actual bank account it would be nice to coordinate with the lender directly to check the available options for you.

      I hope this information has helped.

      Cheers,
      Harold

  4. Default Gravatar
    GladysMay 1, 2017

    I’m on ssi and have bad credit what will be the best loan in my case

    • finder Customer Care
      AnndyJune 15, 2017Staff

      Hi Gladys,

      Thanks for your question.

      The lenders on this page may consider you for a loan.

      You may want to get in touch with the lender you are interested in, to discuss your eligibility given that you are on SSI.

      Cheers,
      Anndy

US Payday Loans Offers

Important Information*
Slam Dunk Loans

Potentially get approved for a short-term loan through this lender-connection service, even with poor credit history.

LendUp Payday Loans

LendUp offers $250 loans for first-time borrowers. Good credit is not required. Visit the site to see if available in your state.

Check into Cash Payday Loan

With 1,000 branches in 30 states, get $50 to $1,000 in days from this direct lender.

OppLoans Installment Loans

Installment loans with competitive rates from a top-rated direct lender.

Go to site