There are a couple of options available to you if you are looking for the best loans for people on benefits. However, not all of them are available (or suitable) for everyone. In this article we briefly take a look at the different options you have and highlight the best option for most people – cash advance loans. The first section should help you determine which type of loan is right for you and whether you need to learn more about payday loan lending while the second section goes into detail about this type of finance.
The Types of Secured Loans on Poor Credit and Unsecured Loans Available to Low Income Earners
The following are the four best types of finance available to people on benefits. Choose the one that you feel is best suited to you to research further.
Government Secured Loans on Poor Credit – There are some larger loans, especially home loans, available to people on benefits through a government support scheme. These occur when the government offers to insure the lender against the risk of default on the loan in order to mitigate any potential losses by the lender. There are usually a limited amount of these loans available and they are not suited to short term finance.
Low Income Guaranteed Consolidation Loans on Poor Credit – If you need debt management more than you need additional debt then this may be the best option for you. Consolidation loans essentially roll all of your smaller debts into a larger one.
Welfare Cash Loans with Low Interest (Or Zero Interest) – Sometimes the best option for obtain a small amount of cash is to ask for an advance on your welfare payment. These are often available in the second half of the year as a way of people on benefits being able to afford Christmas expenses.
Pay Day Loans with No Credit Checks – This is the easiest and best option for short term loans for most people on benefits. This type of finance is discussed in more detail later in this article.
Why Cash Advance Loans are Recommended for Low Income People on Benefits – Payday Loans Help for New Borrowers
Cash advance loans have the drawback of having a large percentage interest rate but they have a lot to offer people on benefits. They may not be perfectly suited to everyone (especially people looking for long term finance) but they are a great option for most low income earners to keep in mind.
No Credit Checks – Most cash advance lenders do not even ask for a credit check. As such, you can have an extremely poor credit rating and still be eligible to receive a cash advance loan. This is perfect for many people on benefits whom have struggled with their debt in the past, lowering their credit rating.
Do Not Need a Large Income – Cash advance loans are typically worked out from your guaranteed income levels. This means that you do not need to be earning a lot to get a loan, you need only be earning consistently. This is perfectly suited to people on benefits since they will always get their checks on the same day each fortnight (or month). This also means that the loan is tailored to the amount that each borrower can logically pay back (based on their income).
Quick Approval Times – Most cash advance lenders will give customers an approval within 48 hours, some even as soon as 24 hours. This means that if you need cash for an emergency you will always have a fast and viable option. Many people on benefits struggle to come up with large amounts of cash quickly and this is the best option for those people.
Easily Available – It is pretty important to note is that one of the reasons that pay day loans are the best loans for people on benefits is that they are very easy to find. In some cases you can get them from your bank, in other cases through local lenders and, and, if none of these suit you then you can find them online as well. If you are currently with a bank then you should check there first and if not then you should look for a local payday loans office. Finally, if you cannot get either of these then you can look online. Always be cautious about protecting your credit card details when looking online, however, and always check reviews for a lender before you borrow from them.