Being on benefits and getting a loan

wordsfan

Not sure if this is right place. So apologies if not.

I am ill and not working and so am on benefits. Also single mum. Situation has arisen where ideally a lottery win of about £2000 would be very handy right now!

As that's unlikely to happen I am left wondering about a loan but I don't think anyone but dodgy people would lend to me. I own nothing worth selling. I belong to a credit union but am not currently a regular saver but have been in the past. Aside from that I'm pretty sure my credit record is rubbish but apart from actually applying, which I dont want to do till I've had some advice, I don't know if it is rubbish, if I would be accepted for a loan or what.

Anyone know anything about this stuff?

[Deleted User]

It depends on a few things really, what benefits are you on? do you have outstanding debt? what is the borrowing for?
Credit union might be worth trying for smaller loans, also your bank?
Some lenders will accept benefits income some won't trouble is only they know who they are.
What ever you do DONT pay anyone to arrange a loan for you, they will only get you a really bad deal or non at all.

pmlindyloo

I am wondering what you need a loan for? Not being nosy but just wondering if there are other options rather than taking out a loan.

Since you are on benefits there may be other help available.

Care to share?

paragon909

wordsfan wrote: »

Not sure if this is right place. So apologies if not.

I am ill and not working and so am on benefits. Also single mum. Situation has arisen where ideally a lottery win of about £2000 would be very handy right now!

As that's unlikely to happen I am left wondering about a loan but I don't think anyone but dodgy people would lend to me. I own nothing worth selling. I belong to a credit union but am not currently a regular saver but have been in the past. Aside from that I'm pretty sure my credit record is rubbish but apart from actually applying, which I dont want to do till I've had some advice, I don't know if it is rubbish, if I would be accepted for a loan or what.

Anyone know anything about this stuff?

Have you tried getting a budgeting loaning from DWP?

I don't imagine small loans such as provident would effect your benefits, If it did most of the people in Britain on benefits would be in trouble... Not stereotyping either. Just saying.

wordsfan

It would be for costs of moving - in a very difficult situation.

Outstanding debts I'm not sure. When I first became ill I had debts I paid some off but not all but this was over 10 years ago.

Benefits I get
Esa, DLA, housing, council tax, child, child tax credits.

I thought budgeting loans no longer existed? Happy to be proved wrong.

Worried sick!

missapril75

wordsfan wrote: »

It would be for costs of moving - in a very difficult situation.
I thought budgeting loans no longer existed? Happy to be proved wrong.

Budgeting loans are still available.
Crisis loans and Community Care Grants from DWP are what no longer exist.

But they have equivalents apparently in Scotland and from Local Authorities elsewhere.

Whether you'd qualify would depend on what the difficult situation was, but being a lone parent and DLA in payment might open a few possibilities.

Tommo1980

You should be clear of any debts older than 6 years as long as you have had no subsequent contact with your creditors, defaults or CCJs.

So assuming you have a clear credit record, current account, mobile contract/catalogue accounts with no missed payments, on electoral roll etc. you stand a reasonable chance of a small loan or credit card at sub-prime levels.

I have had reasonable rate loans and credit cards over the years whilst on benefits, most found through this site. You need to target your applications to lenders that will likely accept you as multiple credit searches will damage your credit rating. Some lenders offer a pre check tool which can be handy.

The other suggestions made may be your best bet though - moving grant, budgeting loan, credit union loan etc.

Tom

pmlindyloo

[QUOTE=wordsfan;71864410]It would be for costs of moving - in a very difficult situation.

Outstanding debts I'm not sure. When I first became ill I had debts I paid some off but not all but this was over 10 years ago.

Benefits I get
Esa, DLA, housing, council tax, child, child tax credits.

I thought budgeting loans no longer existed? Happy to be proved wrong.

Worried sick![/QUOTE]

If your landlord issues you with a section 21 to start possession proceedings you should ask your local council about a Discretionary Housing Payment and whether they have a Deposit Loan scheme.

Whether these would be available without your landlord issuing possession proceedings I am unsure.

Reading your other thread I have to agree with posters who suggest that you try and sort this out with your landlord first.

Perhaps a trip to CAB to ask them to speak to your landlord on your behalf may be a step in the right direction. They will also be able to advise what your options are.

Have you actually found/enquired about other housing options?

paragon909

missapril75 wrote: »

Budgeting loans are still available.
Crisis loans and Community Care Grants from DWP are what no longer exist.

But they have equivalents apparently in Scotland and from Local Authorities elsewhere.

Whether you'd qualify would depend on what the difficult situation was, but being a lone parent and DLA in payment might open a few possibilities.

We get community care grants to which the council provide a house furniture and carpets, and all the white goods, iron board, iron and all pots and pans etc cutlery.... Depending on certain circumstances, It isn't just given out to anyone who applies....

They also provide a person to claim maximum of 3 crisis grant which is sent via text message and you take to paypoint and they give you cash. upto £70 I think depending on circumstances, They also have a clothing grant which you get £100 primark gift card depending on circumstances.

catz1ct

wordsfan wrote: »

It would be for costs of moving - in a very difficult situation.

You should check with your local council, I know ours will cover the cost of moving in some circumstances.

missapril75

paragon909 wrote: »

.... Depending on certain circumstances, It isn't just given out to anyone who applies......

Of course not. Hence my "Whether you'd qualify would depend on what the difficult situation was"