Loans for People on Benefits

Can you get a loan if you are on benefits?

If you’re claiming income support such as universal credit or disability benefits, then you may find it challenging to be approved for a loan by a bank or building society. However, some short-term personal loan lenders may be willing to lend you money, subject to your credit rating and your affordability.

Generally, loans for unemployed or customers who receive state benefits will need a lender or broker who specialises in finding customers this type of finance.

Interest rates and APR may vary depending on the lender, so check your terms and conditions beforehand.

How can I get a loan with bad credit and benefits?

Loan applicants who claim benefits and are looking for bad credit loans, will need specialist help finding a lender who can accommodate their needs and particular personal circumstances, especially if they already have low credit scores. They will need to ensure that their benefits are enough to cover the cost of their benefit loan repayments in addition to monthly expenses.

If you are struggling with debt, contact the Money Advice Service or StepChange for more information on how to manage your debts.

Will I need a guarantor?

Payday loan lenders may require you to provide a guarantor with your application if they believe you may be unable to repay your loan or if you have bad credit. A guarantor will ensure that your loan is repaid in the event that your benefit payments are late or if you are unable to make a payment.

Although at Flexy Finance, it is not a requirement for applicants to provide a guarantor unless they wish to do so.

How much can I borrow?

We provide a range of different loans for amounts of up to £5,000 for 1 to 24 months. Some of the amounts most applied for by applicants include £100, £200, £500 and £1000 loans.

How much is the interest rate on a loan?

The current representative APR on the loans that we broker is 1013.30%.

What does representative APR mean?

APR stands for ‘annual percentage rate’. It refers to the total cost of borrowing money over a year, including the interest and standard fees you have to pay. ‘Representative’ means that 51% of applicants will receive the same interest rate advertised or a lower amount.

For example, the representative rate Flexy Finance offers is 1013.30%. Therefore 51% of customers will receive that rate of interest or lower. It is not a guarantee that customers will receive the same representative APR in their loan agreement.

Not everyone within the 51% will receive the same rate as the APR that is advertised. You will likely receive a personal rate which may be different from other applicants.

A personal rate may be higher, lower, or the same as the representative APR. It is usually determined by your credit score, how much you want to borrow, and your finances.

APR is often used as a comparison tool to help people compare different loan providers.

I am struggling with debt - what should I do?

If you’re struggling with debt, then you should not take a loan out to cover any long-standing debt. This can cause further financial problems and it is always advised to never borrow more than you can actually afford.

If you are struggling from debt there are organisations that can provide advice to you for free. These websites include:

• Money Advice Service
• Citizens Advice
• National Debtline

Why Choose Flexy Finance?

Can I trust Flexy Finance?

Yes, Flexy Finance is regulated by the FCA and is entered on the Financial Services Register under the reference number: 740571. ©Flexy Finance is a registered Trading name of Quiddi Hub Limited which is an Appointed Representative of QV Holdco Ltd.

QV Holdco Ltd is authorised and regulated by the Financial Conduct Authority, and is entered on the Financial Services Register under reference number: 672826.