Find lenders that will say Yes
- See your personalised rates
- Good and bad credit histories accepted
- Fast funding with no hidden costs
Representative example: Borrow £5,000.00 over 3 years at a rate of 49.9% p.a. (fixed). Representative APR 49.9% and total payable £8,782.92 in monthly repayments of £243.97.
Some lenders are reluctant to take applicants receiving benefits, deeming them too risky to lend money to. But there are some lenders who will consider you if you’re getting benefits.
The benefits you receive from the government do not appear on your credit record and therefore have no direct impact on your eligibility for loans.
However, the fact that you’re eligible for government loans nearly always means that you have some sort of difficulty with your income.
Your regular income will be assessed by lenders, and if it’s believed there’s a risk of you struggling to meet your monthly repayments, your application will be rejected.
If you agree that meeting the repayments will be difficult, you shouldn’t apply in the first place. However, for many recipients of benefits, this isn’t the case at all.
As long as you bear in mind that it’s unlikely to check the whole market, but instead subsection of lenders with whom it has an arrangement, then a broker can take the strain out of finding suitable lenders. Brokers find the best rate available to you from their panel of lenders, taking into account your individual circumstances. Generally this service is free, because the broker will earn a referral fee from the lender.
Some brokers or “matching services” can now run soft searches with a range of lenders in seconds, meaning that without any impact on your credit score you’ll be able to get realistic rate quotes for loans you’re likely to be approved for. This can be a smart way to avoid disappointment, protect your credit score and focus on lenders likely to approve you.
It’s unfortunate that people on benefits have more difficulty accessing traditional loans, as they’re often among the people who need them the most. Nevertheless, if you’re in this situation, it’s worth remembering that there are many alternative forms of credit and by following the tips above and comparing options using the finder.com comparison tables, you should be able to find a great deal for your needs.
If you find yourself unable to work, a loan protection insurance policy will pay out monthly benefits straight to your bank account.
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If you’re considering applying for a £200,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
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If you’re considering applying for a £100,000 personal loan, check out this guide which explains how to compare lenders and find the best deal.
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If you’re under 55 and can’t access products such as lifetime mortgages and home reversion plans, read our in-depth guide on ways to release equity from your home.
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