Absence or lack of money can always cause serious issues. It becomes extremely essential when we are facing financial urgency, which demands to be treated right away. We all are aware of the fact that there is a wide range of options for people who have permanent employment, but what about people who are on benefits? What about people who earn money from giving their homes for rental accommodation? Short-term personal loans are available for people on benefits too in the United Kingdom. A few loan brokers or lenders do not exempt people on benefits from any kind of financial help. People on benefits can avail personal short-term loans to attend their urgent financial responsibilities.
So how do we know that who are the people living on benefits in the United Kingdom? Because knowing this will help you to understand the context and content of this whole article. 786 Loans UK is one of the trading styles of Tiger Lion Financial Limited in the heart of the UK. This FCA authorised loan broker operates from Glasgow to Southampton. Moreover, it covers all the major cities including and not limited to Birmingham, Bristol, Leeds, Liverpool, London, Manchester, Nottingham, and Sheffield. This article has been curated for readers who want to know more about loans for people on benefits in the United Kingdom.
Who are the People Living on Benefits in the UK?
As per published in The Times in the year 2017, Birmingham is known as the benefits capital of Britain. It also states that in certain parts of the city, 1 out of 10 people is in the category of “economically active population”. Who either work or wishes to work is on welfare. People on benefits are:
- Who is looking for a job
- Women living in a hostel with their children
- Who are working in low-paid jobs
- Who are currently unemployed due to an immediate illness or disability
- Who are unemployed by the economic crisis
Everyone falling in this category may apply for a personal loan but they should be able to prove a strong and regular income. Or else an individual who is living on benefits in the UK needs to prove his repayment affordability so that a lender will approve of his credit request.
Always remember that approval of a credit request is subject to status and affordability assessment. Moreover, a late payment can cause you serious money problems.
So always, be careful while borrowing money. You can always try to ask for a financial help from friends and family and if you feel like you do not have any other option apart from borrowing a loan from a loan broker or lender, then only borrow a loan from a loan broker, lender, credit union, etc.,
What are the Loans Available for People on Living in Benefits in the UK?
People on benefits may apply for short-term personal loan types such as payday loans for people living on benefits, doorstep loans for people on benefits, etc.,
At 786 Loans, the team prefers to conduct a soft-credit check on your credit report. As per the guidelines of FCA, it is mandatory for authorised lenders or loan brokers to perform a soft-credit check before approval of the loan as this gives a clear idea of repayment affordability of a person. The soft-credit check does not leave any footprint on your credit report and hence, it does not affect your credit scores too. Multiple credit checks degrade your credit score. The soft-credit check does not degrade your credit report.
How to Apply for a Short-term Personal Loan?
People on benefits may apply for a short-term personal loan or its various types after analysing their own financial situation thoroughly. A thorough consideration of the financial and monetary situations helps in maintaining a healthy financial life. Moreover, it helps in choosing such a loan which best fits the individual. At 786 Loans, applying for a short-term personal loan can be summed up in a few steps. The steps involved in applying for short-term personal loans are:
- Visit our homepage
- Fill the online application available on the website
- Provide all the necessary details and make sure the details are correct and true
- Click on the “Submit” button
- An agent from 786 Loans will contact the applicant
- The further procedure will be informed to the applicant
There a multiple of options to choose a loan, but choosing as per current financial conditions is the wisest option of all.
Eligibility Criteria or Qualification for Loans for People on Benefits
The FCA has set a few basic guidelines for people who are interested in borrowing a loan. And those are:
- An applicant must be a citizen of the Union Kingdom. Citizenship is necessary.
- An applicant must be 18 years of age or above.
- An applicant must have a valid bank account.
- An applicant must have a functional bank account.
All these guidelines help FCA to maintain the financial market of the UK in a smooth way. As these basic guidelines, prove to be beneficial in case of preventing any crime or money laundering frauds.
786 Loans offers unsecured short-term personal loans which means an individual does not have to keep their property at stake for a loan and he does not have to arrange a co-signer or guarantor for the loan. Unsecured loans do not involve a collateral as a mortgage for your loan.
Repayment of Affordable Loans
A loan amount can be termed as affordable when the amount is easily repayable. An individual must apply for a personal loan only when he or she can afford to repay the loan amount without fail. Failed repayments or missed repayments of a loan affect your credit score negatively and they lessen your chances of being accepted by a lender for an unsecured personal loan.
A personal loan can be repaid in affordable repayment structure as per your convenience. Ensure that you go through the Terms & Conditions of the loan agreement before opting for a personal loan. It is always advisable that you must know the agreement. If you come across any queries, you can always contact the broker or lender for further clarifications.
786 Loans has a team of dedicated professionals who will love to help you with your queries. Clear all your doubt with the agents and then give a considered response. We do not charge any upfront fees for our services.
People who are living on benefits in the UK may apply for short-term personal loans here.