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.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you.
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Hi, I am trying to get a loan for 7000 as got few things to pay off and due to moving into a house but can’t seem to get anywhere as I’m on benefit. Any idea how I can do this, please?
Hi Caz,
Thanks for getting in touch with finder. I hope all is well with you. :)
I’m sorry to hear about your situation. It is true that by of yourself, it might be difficult for you to get a loan. However, after trying to apply for a loan and you still didn’t get approved, you might try other options.
Please review the details written under the subheading “What are my credit options if I’m on benefits?” It lists some of your other options such as guarantor loans, secured loans, credit-builder credit cards, and others.
Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Hi I want to apply for a loan.
Hello Naima,
Thank you for your comment.
If you’re referring to applying for a loan while on benefits, reading the guide above may be beneficial to you as you can get tips on what to look out for when looking for a loan. Please check the type of loans you need to get when you’re on benefits and make sure that you meet the criteria set out by the lender.
Alternatively, you may compare personal loan products on this page. Please compare the lenders on the table and check if it suits you.
Please click the Go to Site button of your preferred loan product to be redirected to the lender’s page. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision and consider whether the product is right for you.
Regards,
Jhezelyn
I am on benefits but I need a small loan. Can you help as most of the loans you need to have a job. Thank you.
Hi Susan,
Thanks for reaching out to finder.
I understand it could be quite challenging to get a loan when you are receiving benefits however you still have options that you can consider.
You can apply for a guarantor loan. You can go to this page to learn more about how guarantor loans work and also see lenders offering this type of loan.
Another type of loan you can consider is Payday loan. Most payday loan lenders consider benefits as an alternative source of income. To learn more about payday loans and see lenders offering this type of loan, you can go here.
Before applying for any loan, please check the eligibility criteria and read the loan terms of agreement to see whether it is right for you.
I hope this helps.
Cheers,
Charisse
Been trying to pay off the overdraft but Can’t afford to pay the full amount tryed to ask the bank for a loan but they said they don’t lend to people that are on benifits but they let you take out more on the overdraft.
Hi Mark,
Thanks for getting in touch with finder. I hope all is well with you. :)
I’m sorry to hear about your situation. If you struggle to pay off an overdraft, then it would be more difficult for you to get a loan from the same bank. What you can do is try to apply for a loan from the providers listed on this page. Please review the criteria, details of the loan product and contact the lender directly to discuss your loan options and eligibility.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua