Compare personal loans for single parents

Why would a single parent not be approved for a personal loan?

Single parents are judged by the same lending guidelines as every other borrower, but the fact that they rely on a single income and are often solely responsible for their debts means that they often don’t meet the requirements set out by lenders. And if you’re receiving government benefits or working part-time hours, it may be considered as an insufficient source of income, even if you make enough to cover the cost of the loan.

What income do I need to get a loan?

• Personal loans
• Short-term loans

How do I compare my options?

While you may feel you have limited options, it’s still important to compare the products you find to ensure you get the best option for you and your kids.

• Interest rate. Unless you have impeccable credit, check out the full range of interest rates charged by your lender. By seeing the maximum amount you might be charged, you can better compare your options.
• Fees. Interest rate doesn’t always tell the full story. Loans can come with both one-time and ongoing fees, so compare these because they will contribute to the cost of your loan.
• Restrictions. You may be restricted as to how much you can borrow, what you can use the money for, whether you’re able to make extra repayments or if you can repay the loan early.
• Repayment flexibility. This is an important consideration, as it could affect your ability to manage the loan. See if you’re able to make weekly, biweekly or monthly repayments.
• Lender. The actual lender you’re borrowing from should factor into your decision, as this is a business you’ll have to deal with for the next few months or years. See how easy the lender is to contact and how good the customer service is.

How do I improve my chances of being approved?

• Check your credit score. You can check your credit score for free to find out what kind of borrowing position you’re in. The higher your score, the less of a risk you appear to the lender.
• Get informed. You can read our articles on how to avoid personal loan rejection and common denial reasons to get more information on what lenders look for.
• Consider alternatives. Taking out a loan might not be the best option for you right now, and you may have alternatives depending on your situation. You might be able to make extra cash with a side gig or get an interest-free loan from a friend.
• Borrow a lower amount. A good rule of thumb is to only apply for as much as you need and can afford. Lenders may reject your loan application rather than offering you a lower amount if you apply for too much

How do I apply?

You can first compare your options using tables above. Once you’ve found a loan that you want to apply for, click Go to site to be directed to the lender’s site or click the lender’s name to read a review of its loan products.

When you apply on the lender’s site, you’ll provide your contact information, financial information and the amount you’d like to borrow. Some lenders will let you know right away if you’ve been preapproved and ask for verification of a few pieces of information before extending an offer. Other lenders may take a few days to respond with an approval or denial notification.

Bottom line

As a single parent, you may find your budget is pretty tight. A personal loan can help make a large expense more affordable, but depending on your income, you may struggle to meet a lender’s minimum eligibility criteria. However, that doesn’t mean you’re out of luck. By comparing your options and reading up on personal loans, you may be able to find a deal that doesn’t break the bank or put too much strain on your family’s budget.

Frequently asked questions