Are Child Tax and Working Tax Credits classed as income?

sb44

I have just been looking at the Barclaycard site and one of the stipulations for a loan application is a regular income.

If you are a full time mum with tax credits as your sole income does that make you eligible to apply for a personal loan?

enjoyincubus

Certain banks state that applicants living solely on benefits are not eligible for a personal loan. But there is no harm in ringing up and asking what their policy is?

Kavanne

Natwest says yes

BUT you might not pass on affordability if that is your ONLY income. It can be taken into account for a loan application though

Scousebird_2

Yes-Barclays will accept benefits of this type as income because it is probably more guaranteed than employment-so yes...it is income (household).

mitchaa

Scousebird wrote: »

Yes-Barclays will accept benefits of this type as income because it is probably more guaranteed than employment-so yes...it is income (household).

Tax credits could be abolished at any time. A tory government is soon to take over.

Tax credits can change dramatically, 1 year you may be overpaid (Very common it appears) for the next year you to be in arrears and pay it all back.

They change with circumstances also, a promotion at work, age of child, child is no longer a child, death of child etc.

I would imagine the interest rate offered will be extortionate if benefits are your sole income.

I would also imagine most lenders would run a mile.

mirrorimage0

i got a mortgage when i was a single mum working and on tax credits and working credits from the abbey national, really was plain sailing

MrsB2004

It depends on the lender, best to check with a few. i would be careful of the 'doorstep' lenders that target people on benefits such as provident etc. they may be suitable if you are looking for a small short term loan (and i mean short term!) as their apr's are very high! best to make a few phone calls or look on line for lenders that will offer loans in your circumstances and check the terms!