How to get a loan with low income
Low income payday loans and low income bad credit loans are often sought to give you the money you need to buy essential items, for example, to cover car repairs or a broken boiler and less about larger loans used for debt consolidation.
When you apply for low income loans UK lenders will be looking very carefully at whether you can afford to make the loan repayments, taking into account your other financial commitments. They need to make sure that when they offer loans for low income they do not lend you more money than you can afford to repay.
We can help you find the right low income loan quickly and easily without the need for extensive or time-consuming credit checks. Simply follow our three step process for getting accepted:
- Fill out our secure online application form in less than five minutes
- Choose the right loan for your circumstances from lenders that have accepted your application
- Finalise your application with your chosen lender and, if accepted, the funds will arrive in your account within the hour
Where do I get a low income loan?
People with small amounts of money coming in can still find lenders prepared to lend low income personal loans. Whether or not a loan is offered will depend on the lender's assessment of your credit score and the likelihood that you can pay back the money you are lent. Loans for bad credit and low income are possible but are likely to have a higher interest rate and stricter affordability criteria.
You should always check that the lender you apply with is authorised by the FCA. All of the lenders on Choose Wisely appear on the financial services register.
Alternatives to low income loans
There are alternatives which may be available:
Credit Union loans
Credit unions are set up to benefit their members. You may be able to join your local credit union if you live in their area, or you could join a credit union linked to your employer, housing association or trade union. Some people may find that credit union loans are possible even if they do not qualify for mainstream low income loans.
Government Budgeting loans
The government budgeting loan and advance scheme give interest-free loans for essential items. To qualify, you will need to be on one of the specified income-based benefits. This scheme provides funding if you need essential furniture or white goods for your home that you cannot pay for in any other way. You will not be able to use the scheme if you have any savings or any other way of paying for the things that you need. These loans will be for a maximum of £1,500 and you can apply at your local job centre or on the .gov.uk website.
Low Income Loans FAQ's
Government Grants, approaching local charities for help (Charity-run website Turn2us has an easy-to-use grant search), claiming benefits or applying for a jobseeker's allowance.
Apply via Choose Wisely and we will communicate with multiple lenders on your behalf, and return results that show which lenders have accepted your application in principle.
You may be able to get a low income loan even if you’re receiving benefits from the government, however each application is dependent on individual circumstances and acceptance is subject to a lender’s hard credit check when an application has been submitted.