People on benefits may often find themselves in situations when they need that extra cash, whether it’s for a car that needs fixing or any other unforeseen expenses. At Cashfloat we advise you to only apply for short term credit if you need the money urgently and can afford the repayments. Learn more in this article about the day to day struggles of people living a life on benefits.
Whether you have a part time job and receive some income support, or you are looking for a role to fit around school hours, our short-term loan product could be tailored to fit your needs. We understand that finding the right job can take some time and can support you whilst you are getting set up. We want to make sure that you can still take care of those emergency purchases that crop up when you least expect it.
If you can’t provide proof of income, lenders are less likely to offer you a cash loan. However, even if you don’t have a job, there are options available to you as long as you have an alternative source of income.
The best loan terms and rates are often reserved for customers with a good credit history, and for those in employment. Usually, high street banks refuse to offer loans to people without a steady salary as they are more likely to be late with or miss payments, but you could still get access to cash through doorstep, payday or other short term lenders. However, loans from these types of lenders tend to be more expensive and may not be suitable if you need to borrow more than £1,000.
If you decide to apply for a loan from a doorstep or online short term lender you may be asked to complete anaffordability assessment to determine whether you will to be able to pay back the money you’ve applied to borrow.
As part of this assessment you may be asked to provide proof of income. This could include:
Salary payments from an employer
Other sources of income such as regular payments you may receive from your partner or ex-partner.
However, each lender is different so you will need to check.
A cash advance might be a better option for you that you should consider. I know a lot of people always go for payday loans but when you are unemployed and on benefits, people look to screw you out of your unemployment.
You have other options such as a cash advance or a loan from community bank. Pay day loans tend to have a high percentage of interest. A friend of mine got one of those same day loans and when it came time to pay it back, he owed 43% on top of the loan.