Loan when on universal credit

luckybert

Is it possible to get a loan when you are receiving universal credit?

la531983

Your income would be assessed in the exact same way everyone elses is via credit scoring, i cant imagine the interest rates you will be offered will be in any way appealing though.

CliveOfIndia

Yes, it's possible.  As above, any form of regular income can be declared - pension, benefits, it doesn't have to be just a salary.  As to whether it's affordable, and whether a lender would view it as such, is a different matter.

LunaLater

It’s possible, but will very often be unwise. If you aren’t able to get by on your current income then it’ll be very hard bro not only get by on it but to also make loan repayments.

What is the loan for? Borrowing to get a one month rail season ticket for your new job is very different to borrowing for living expenses.

luckybert

LunaLater said:

It’s possible, but will very often be unwise. If you aren’t able to get by on your current income then it’ll be very hard bro not only get by on it but to also make loan repayments.

What is the loan for? Borrowing to get a one month rail season ticket for your new job is very different to borrowing for living expenses.

It's actually my daughter she needs a car.

CliveOfIndia

luckybert said:

LunaLater said:

It’s possible, but will very often be unwise. If you aren’t able to get by on your current income then it’ll be very hard bro not only get by on it but to also make loan repayments.

What is the loan for? Borrowing to get a one month rail season ticket for your new job is very different to borrowing for living expenses.

It's actually my daughter she needs a car.

Would it be feasible for her to save up for a few months and buy a cheap runabout?  That would cost a lot less in the long run, since she won't be paying any interest.

And if money is tight, she needs to factor in the costs of running a car.  Quite aside from the purchase price, there's going to be tax, MOT, insurance, maintenance and repairs to budget for.

luckybert

CliveOfIndia said:

luckybert said:

LunaLater said:

It’s possible, but will very often be unwise. If you aren’t able to get by on your current income then it’ll be very hard bro not only get by on it but to also make loan repayments.

What is the loan for? Borrowing to get a one month rail season ticket for your new job is very different to borrowing for living expenses.

It's actually my daughter she needs a car.

Would it be feasible for her to save up for a few months and buy a cheap runabout?  That would cost a lot less in the long run, since she won't be paying any interest.

And if money is tight, she needs to factor in the costs of running a car.  Quite aside from the purchase price, there's going to be tax, MOT, insurance, maintenance and repairs to budget for.

I agree, I think this is the best option, until her circumstances improve.

LunaLater

luckybert said:

LunaLater said:

It’s possible, but will very often be unwise. If you aren’t able to get by on your current income then it’ll be very hard bro not only get by on it but to also make loan repayments.

What is the loan for? Borrowing to get a one month rail season ticket for your new job is very different to borrowing for living expenses.

It's actually my daughter she needs a car.

Is she currently saving as much per month as the car will cost to run and the loan will cost to service?

If not please help her to check her numbers; this could be the start of spiraling debt if she’s not going to be able to afford to pay her normal living expenses on top of the new costs.

retiredbanker1

 I can see the future here - IF and it is a very big IF for her to get accepted, then I can see a post in the future from someone who will be complaining about unfair lending practise etc.