Loan on welfare personal loans

How to get a loan when you’re on welfare

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 August 18th, 2017
Your filter criteria do not match any product
Name Product Product Description Maximum Loan Amount Term of Loan Turnaround Time
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
7–30 days
Generally receive the money the next business day
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
Varies by state
1–2 business days
CashNetUSA Loan
Apply for short term loans, installment loans or lines of credit in 30 states typically with a day’s turnaround.
Varies by state
Varies by state
1 business day
ACE Cash Express Payday Loans
Quick short term, installment and title loans come with no prepayment penalty and a 72-hour satisfaction guarantee.
Varies by state
Varies by state
Generally receive the money the next business day
Check City Payday Loan
Apply for a fast, secure and confidential payday loan — even with less-than-perfect credit.
Depends on state of residency
Varies by state
Next day

Compare up to 4 providers

Rates last updated August 18th, 2017
Your filter criteria do not match any product
Name Product Product Description Maximum Loan Amount Term of Loan Turnaround Time
OppLoans Installment Loans
Get a better installment loan repayment terms up to 36 months, depending on your state.
$4,000
9 to 36 months
1 business day
Slam Dunk Loans
Get approved for a cash loan today with this lender matching service offering short term funding. Availability depends on your state of residence.
$2,500
Varies by lender
As soon as next business day
NetCredit Installment Loan
Build a positive credit history with on-time payments through flexible repayment options that include credit card and money transfer.
$10,000
Varies upon state
1-3 business days
Cash Central Installment Loan
Pay monthly or biweekly over six to 24 months with lower APRs over your typical payday loan.
$5,000
6 to 24 months
Next Business Day

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 income affects your 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.

Frequently asked questions

These types of loans typically come with extremely high interest rates. They offer the satisfaction of receiving money quickly, but often load borrowers with crushing repayment terms. They also tend to come with hidden rules that are terrible for borrowers. Avoid these loans, if you can.

Your creditworthiness is a quick way for lenders to determine your ability to repay your loan. They use it to assess how risky it is to let you borrow money. The higher your credit score, the less lenders are willing to charge you for a loan — in other words, they’re willing to give you lower interest rates.

These services are paid commissions for referring you to the right lenders.

To receive a secured credit card, you agree to put down an initial deposit, which protects the lender if you default. The amount you deposit is used as your credit limit. Secured cards are useful because you don’t have to have great credit to obtain them.

You should have your personal information ready — your phone number, email address, home address, driver’s license number and Social Security number. You’ll also need to provide bank account information and employment details.

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4 Responses

  1. 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?

    • Staff
      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

  2. Default Gravatar
    GladysMay 1, 2017

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

    • Staff
      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

Learn about our information service
Slam Dunk Loans

Get approved for a cash loan today with this lender matching service offering short term funding. Availability depends on your state of residence.

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

Get a better installment loan repayment terms up to 36 months, depending on your state.

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