applying for credit whilst on benefits

kat7_2

Does anyone have any experience of applying for a credit card/loan when you are not in employment?

I do not work due to a disability but a have a regular income of £79.35 Income Support per week.

I need to borrow a sum of around £2,000-£2,500, in order to pay off a debt to an ex-partner so that we can get financial matters sorted out. I need the money fairly quickly.

The reason I am asking is that I obviously do not want to just start applying for credit to multiple companies as I am worried what impact that would have on my credit rating; I need some idea as to what their policies for people like me are first. So I thought I could start phoning the companies and asking them about this...

But if anyone has any advice they could give me regarding my situation I'd be very grateful.

N.B I have no loans in my name apart from a student loan (deferred), no credit cards and a Littlewoods store card/catalogue account.

Thanks in anticipation of any replies.

Debt_Free_Chick

You need to think about how you are going to pay off a loan or credit card. Do you think it's feasible?

However, I think you will find it difficult to get credit and if you do, it will be for a minimal amount and may involve an unattractively high interest rate.

Can you not come to some agreement with your ex instead? Work out how much you could afford to repay each month and offer that. Or do you not have something of value you could offer? Or sell, to raise the money? Or could family help?

I would not want to see someone in your position owing money to lenders, who can really turn the pressure on if you can't afford the repayments. I would urge you to find some alternative way of repaying your ex, if, given your situation, he is insistent on having his money back now.

HTH

kat7_2

Thank you very much for your reply Debtfreechick.

I've thought carefully and it would be feasible to pay off a loan/credit card, given my other expenses. I have worked out a budget.

Coming to an agreement with my ex IS NOT an option; the circumstances are complicated and there needs to be a clean break, i.e I need the money from another source to pay it off.

I don't really want to ask family for help unless I can find no other option, I need to be able to be able to sort out my own mess as the situation is complicated.

There isn't anything of enough value that I could sell or offer.

I understand that the lenders would probably offer high rates of interests if I was able to get a card or loan... but, this is the road I have to go down at the moment.

So...I still need to know if anyone has any specific information they could give me regarding lenders who would lend to someone in my situation

Thanks again,

and any more replies gratefully appreciated

deemy2004

Only thing that comes to mind are the credit cards at 0% that ask for total income rather than salary thus £80 per week equates to £4160 per year, you could add in any other benefits you get either in cash or inkind, but still its going to be hard. There are also some cards which ask for household income so if you live with a partner / family you could technically include their earnings also.

Though don't lie about your earnings.

Jenners

Hi Kat7

I have been in the situation of needing a loan when on disability benefit, my solution was my bank. As I had been operating a current account with them with no problems, they were happy to provide me with a £2500 loan at the normal interest rate. At the time I did ring around a couple of other lenders, eg Lombard Direct & GE Capital, they refused due to not being in employment.

I hope you manage to sort something out.

Jen

daveboy

Just make sure you don't approach one of those lenders, such as Provident Financial, who charge ridiculous interest and also call at your home each week.

Companies like this shouldn't be in business and are best left alone as they take advantage of people in your position.

Queenie

Can you apply for a Social Fund Loan? Might be worth looking into.

jonesMUFCforever

Social fund loans are only for specific emergencies like a piece of furniture or a washing machine etc not to pay off ex.
Eric

Sugar_Junkie

If you only receive income support most won't take that as a guaranteed income. You mentioned a disability.. if you're registered disabled Bank of Scotland personal loans will take an application.. though you're income is low so it may not be accepted, and if it is it's probably not going to be at the typical apr rate. Sorry can't help more. Trying your own bank might be the best bet.

Queenie

ejones999 wrote:

Social fund loans are only for specific emergencies like a piece of furniture or a washing machine etc not to pay off ex.
Eric

Thanks Eric, I wasn't aware of that.

Walletwatch

As someone has suggested in an earlier post, go to your bank if you've been with them long enough (and of course, don't have a bad track record with them on returned chqs, insufficient funds to cover DDs, etc). They're the best bet in your position, so far as issuing you a credit card is concerned.

If it comes with an introductory 0% offer, even better...