If you are on benefits and need a loan today, you can now approach lenders directly. Online applications are possible 24/7 and approaching a direct lender can, in many cases, remove a layer of cost.
As many applicants will be struggling with their short-term cash flow, any savings will be well received.
The UK lending market provides a very diverse mix of direct lenders and credit brokers which in many cases offers the best of both worlds. Those confident enough to do their own research, they can scour the Internet and approach lenders directly.
Where an applicant is a little less confident they are the can always look to go through a broker who will research the best loan deals for their specific scenario.
Can I Get a Loan Today on Benefits?
This is a question which is asked every day – the simple answer is yes, depending on your income and level of finance required. Where you have a regular form of income and can incorporate loan repayments into your monthly budget, there is no reason why you can’t secure a same day loan.
The interest rate charged will depend upon your ability to pay as well as the amount of money borrowed and the repayment terms.
How Quickly Can I Get the Funds?
Whether using the Internet or one of the popular mobile phone apps, you can literally apply online on the move and receive an almost immediate decision.
Assuming you are able to supply the relevant documentation, proof of income and budget, you could literally have funds in your bank account within an hour of approval.
Some loan today companies can transfer the funds within 15 minutes of approval!
Can I Get a Loan With Bad Credit?
The loan today market is a very buoyant and a very fluid part of the UK lending market. This area of the market is often focused on those with historical financial difficulties, limited assets and in some cases, limited income.
While regulated lenders in the UK are obliged to carry out a credit reference for each loan application, a bad credit reference may not necessarily scupper your chances of securing finance.
Why Am I Still Paying the Price for Financial Difficulties of Years Ago?
Rightly or wrongly, the UK credit scoring system works on a six-year rolling reference. So, for example, if you experienced financial difficulties five years ago, there is every chance this will still be impacting your credit rating.
We are talking about missed payments, credit management options, defaults and even write-offs. The system is structured in such a way as to alert future lenders of any financial difficulties experienced over the last six years.
So, where you become aware of potential financial difficulties in the short to medium-term, it’s very important that you take action to avoid missed payments and defaults at all costs.
What Is the Maximum Loan I Can Apply For?
In theory, there is no limit to the level of finance you can apply for so long as you are able to afford the repayments.
There is an argument to suggest that the annualised interest rate on relatively short-term loans is higher than that for more long-term, more structured loans.
That said, the interest rate on an individual application will be wholly dependent upon the applicant’s ability to repay and to a certain extent, their credit history.
This is simply a reflection of the risk/reward ratio.
What Is the Minimum I Can Borrow?
While there is a point at which relatively low borrowings are not cost-effective for the lender or the borrower, to give you an idea, the average payday loan is £100 repaid over 30 days.
As the lender would need to make a return, the annualised interest rate on relatively low borrowings can look artificially high compared to others.
For those struggling with short-term cash flow, there may be an option to apply for a universal credit loan or the early payment of future benefits.
What Is the Longest Loan Term Available?
Many people are unaware but payday loan lenders/quick loans/loan today lenders (they are known by an array of different names) are now able to offer finance up to 12 months in duration.
While the average loan for a payday loan company is £100 over a 30 day period, there is the option to extend any loan term up to 12 months.
While you would obviously pay additional interest, for many struggling to make ends meet, it can make sense to extend the term which will reduce their monthly repayments.
Do I Need a Guarantor?
There are two types of loan, secured and unsecured, with short-term loans predominately unsecured. This means that there is no collateral held against the loan, and therefore there is a greater degree of risk to the lender – which is reflected in the interest rate.
While you don’t necessarily need a guarantor if you’re on benefits, it may help your terms if you can find someone to guarantee your loan.
Any lender would gratefully accept the inclusion of a guarantor because at the end of the day if you default then the debt will simply be repaid by the guarantor.
Do I Need to Be Employed to Get a Loan?
The simple answer is, the greater your overall income, whether a mixture of employment and benefits, the more likely you could afford the repayment terms.
However, you do not need to be in employment to secure a loan today. It simply comes down to whether your regular income is sufficient, after taking into account your living expenses, to cover future repayments.
How Can I Find the Best Deals for Me?
While there is no doubt that applying to a direct lender can remove an element of cost from your funding application, it is not always easy to find the best deals.
Many credit brokers will have access to promotional offers which are not necessarily in the public domain.
When you also consider the hundreds of different same-day loan operators, it can be difficult to find the best ones for your situation.
While applying directly to a lender can obviously remove a layer of costs, you are not necessarily guarantee the best deal on the market for you.
So, whether you go via a credit broker, using their knowledge and experience, or straight to a direct lender, dependent on your ability to research the best deals, there is a lot to think about.
How Can Flexy Loans Help?
Here at Flexy Loans, we have partnered with some of the UK’s leading Lenders.
They have already helped thousands of people get loans already, and they can do the same for you.
Choosing a loan broker like us (we don’t charge any fees) means our application process matches you with the best loan available to you. All lenders we recommend are regulated by the FCA, which gives you an additional layer of protection.
To apply and see what loan is available to you, click on the below and answer the question