Loans for low income earners are usually rejected by the banks. If you also have a bad credit history, you’re probably wasting your time completing the application form. Bad credit low income short-term payday loans, especially when they aren’t supported by collateral, are only available from specialist lenders who don’t rely on a credit scoring process. They typically have guaranteed approval.
The banks won’t lend you money because they want to protect their balance sheets from bad debt. The higher the risk category you fall into, the more likely you are to default on the terms of the agreement. Specialist poor credit loan lenders use a one-size-fits-all strategy for new customers. Provided that you’re able to meet a basic set of eligibility criteria, you’ll be approved for a short-term cash loan.
UK Government Low Income Loans for People with Bad Credit
The UK government has recently introduced its own loans for low income earners due to a desire to stop people turning to a loan shark. My Home Finance, a not-for-profit enterprise, is in the process of setting up outlets in major towns and cities so credit can be allocated to those who most need it. As well as offering cash advances, they also offer access to bank and savings accounts.
Following a face-to-face interview, you can get loans for low income people of up to £500 and spread the repayments over the next 52 weeks. You will need to provide them with bank statements, identification and a comprehensive breakdown of your income and expenditure. Once approved, your government low income loan will be sent you by bank transfer.
No Credit History Payday Loans for Low Income Earners
If you urgently need an unsecured bad credit low income loan but don’t want to provide bank statements or undergo an interview, a payday lender may be able to assist you. Regardless of whether you live in the UK or US, you’ll be able to borrow up to $1000 provided that you’re able to meet a basic set of eligibility criteria. You’ll need to be a US citizen, over-18 and have your own checking account.
Some lenders will also insist that you have a full-time job, but others will lend you up to $500 when you’re on state benefits. It’s just a matter of trawling the market for the right lender. Once agreed, payment will be sent directly to your checking account within a maximum of 24-hours. You’ll then need to settle the balance no more than 30-days later. Quick payday loans are not a means of long-term borrowing.
Pros & Cons of Bad Credit Low Income Loans with No Credit Checks
Loans for low income families are extremely easy to get approval for and can be used for absolutely any purpose. If you need to fix your car or pay the rent, being able to borrow money when you’ve been rejected by the a bank is a real godsend. You’ll always receive the money you urgently need within 24-hours, possibly a lot sooner if your application is made early enough in the day.
While an absence of credit scoring means that you’re guaranteed to get approval, this does come at a price. If you’re struggling to pay the bills now, is life going to be any easier a month later when you need to settle the debt? You’ll find that loans for low income earners are a very expensive way of borrowing money. Critics argue that loans for people on low income only serve to exacerbate your financial difficulties.