Getting a loan when on benefits

CarerCar

Hi,
I hope someone may be able to help with my predicament.

My fairly new (but out of warranty) car has died and will require £1000's to repair. In fact with all parts and labour costs included, it's more sense to replace it with a slightly newer inexpensive one.

I am a carer for my wife and between us we get DLA, CA, CTC and CB (last two for the kids). I also have a private pension which means that although not as flush as before I had to give up work, our joint income is pretty good.

My problem is that I cannot find anyone to give me a loan. Even my own bank will only recognise my pension as income, but insists that all out goings must come out of my pension, not the benefits we receive.

Anyone managed to find a firm that will lend taking benefit income into consideration.

PMs welcome.

Just to add the loan repayments would be easily met, if I could find someone to lend to me.

Also we have no major black marks on our credit file, in fact the salesman in the car showroom was shocked when our credit rating came back and then one by one all the finance companies refused to lend.

alwaysonthego_2

Do you get HR mobilty in your DLA?

enabledebra

If the motobility scheme isn't an option try here:


http://php.dwp.gov.uk/other-specialists/the-growth-fund/growth-fund-contracts/contracts.php

CarerCar

Thanks for the fast replies.

Unfortunately the wife gets High Care and Low Mobility.

The growth fund looks interesting, I'll have a good look at it.

Anymore good ideas like that anyone?

Jowo_2

Credit Union - these are set up precisely to help those on a lower income or those traditionally rejected for loans by high street lenders.

CarerCar

Just had a look at the growth fund, doesn't seem to run in Northern Ireland, were I reside. Also it is for small amounts.

Credit Unions I've already looked at , they seem to want you to demonstrate regular saving before they will consider you for a loan. Very good practice, but no good for my current problem.

Just to clarify, I'm looking to borrow £5000, which would be a repayment of about £130 a month from a reputable company. Did find a nice company that will lend to me at 53% APR!

Oldernotwiser

CarerCar wrote: »

Just had a look at the growth fund, doesn't seem to run in Northern Ireland, were I reside. Also it is for small amounts.

Credit Unions I've already looked at , they seem to want you to demonstrate regular saving before they will consider you for a loan. Very good practice, but no good for my current problem.

Just to clarify, I'm looking to borrow £5000, which would be a repayment of about £130 a month from a reputable company. Did find a nice company that will lend to me at 53% APR!

I think you might need to scale down your ideas on how much to pay for a car. You could get something perfectly reasonable for a third of that amount!

CarerCar

You are probably correct, but, after the year I've had, spending on repairs to my current car, I need something newish (with a two year warranty).

Also my Mrs needs an MPV and they seem to be a bit more expensive.

As previously stated, the cash is available to repay a loan, just need a company that will recognise benefits as income.

Blackpool_Saver

http://www.natwest.com/personal/loans/g1/personal-loan/common-questions.ashx


What can I include as "income" when completing the application form for my online loan?
You should add up all your monthly earnings. You can include:
Salary (after tax)
Pension
Disability Living Allowance
You can also include:
Court-agreed child maintenance
Long-term town, housing, or shift allowances from your employer
Child Tax Credit
Working Tax Credit (if it's not already included in net salary)
Under 'Other monthly income' you can include child benefit, any other state benefits and any other net (after tax) regular income you receive.
If you declare income that's not shown on your NatWest current account, we may ask for additional confirmation.

[Deleted User]

In the 12 years we`ve been on benefits had no problems getting loans/credit/credit cards from high street lenders,get I/S and DLA.
our latest loan(this summer)was a 5 fugure loan from our mortgage provider at less than 5% apr
so if you have a clear credit history try somewhere other than your bank.

AnxiousMum

CarerCar wrote: »

You are probably correct, but, after the year I've had, spending on repairs to my current car, I need something newish (with a two year warranty).

Also my Mrs needs an MPV and they seem to be a bit more expensive.

As previously stated, the cash is available to repay a loan, just need a company that will recognise benefits as income.

I drive an MPV - simply because I have five kids. Don't receive benefits other than child benefit and £10.40 per week ctc - both work full time. Simply can't stand unnecessary credit - so my car is an MPV which cost me £430 on Ebay about a year ago - only costs have been a service with the MOT and a starter motor - total cost under £200 for all of that. Look for a good used car that you can afford yourself if you can - you may find that banks are looking at benefits as not a definite source of income while all these changes are taking place!