Bad Credit Personal Loans for People on Benefits

Easy Way To Get Money Fix When You Need It Most

Getting a loan from payday companies means that you would be using your pay check as a means of getting quick cash. It can be a fast and convenient solution for your money problems. The processing time has been cut down drastically. You can get an approval on the same day, sometimes after just 1 hour of filing an application. It is faxless, no documents involved and with no credit checks. In the past, it was required that borrowers issue checks to cover for the loan amount and fees as well, but now no checks are needed.

Those are the advantages of that kind of financial product. How about bad credit payday loans for people on benefits? Is that a good idea? Can people with extremely limited income benefit from this sort of loan?

Getting into A Loan Trap

The simple answer is no. This type of financial product should not be recommended to people with limited income. It places them at risk of falling into a loan trap. They would even be more vulnerable because of the fact that they are actually dependent and they don’t earn their own money. While this form of loan is beneficial because of its fast approval and decision, people on benefits should look towards other financial products first.

Here are some options that you should explore first if you are on benefit:

Bank Overdrafts

The overdraft is typically linked to the bank account that is used for receiving your benefits. There are several types of overdrafts that are available, but whichever you choose would be a very convenient means of getting extra money when you need it most.

Personal Loans

Some banks will provide personal loans for people on benefits at very low interest rates. It would still be based on your credit score. The higher score that you have, the better the terms that you would be getting. You can get a secured or an unsecured personal loan. The secured personal loan would pose a great risk for you, because of the chance that you could lose what security that you used in case you fail to make payments.

Credit Cards

It is actually a lot better to get a cash advance using a credit card than to resort to a bad credit payday loans for people on benefits. The interest rates would be lower when you consider it. In fact there are even zero interest rate credit cards that are available now. With these cards you only have to pay what you actually used with worrying about interest and fees.

Peer to Peer Lending

You can join peer to peer lending groups so that you can get the amount that you need with very low interests, since there are no middlemen involved. The only thing is that you ought to be ready to help out other members.

Credit Union

A credit union is a group formed with the aim of helping out their members for getting better deals. This is probably the option where you can get the best deal of all.

These are just the options that you need to explore first if you are on benefits.

 

















 

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NOTICE: PLEASE BORROW RESPONSIBLY. A SHORT TERM LOAN SHOULD BE USED FOR SHORT-TERM FINANCIAL NEEDS ONLY, NOT AS A LONG-TERM FINANCIAL SOLUTION. CUSTOMERS WITH CREDIT DIFFICULTIES SHOULD SEEK CREDIT COUNSELING OR MEET WITH A NONPROFIT FINANCIAL COUNSELING SERVICE IN THEIR COMMUNITY.

Representative APR 391%
Example: You borrow $100 for two weeks. Lender can charge you a $15 fee, which means you will have to repay $115 to the lender at the end of the term. The cost of the $100 loan is a $15 finance charge, which anounts to an annual percentage rate of 391 percent. If you decide to roll over the loan for another two weeks, lender can charge you another $15. If you roll-over the loan three times, the finance charge would climb to $60 to borrow the $100.
Implications of Non-Payment:
Some lenders in our network may automatically roll over your existing loan for another two weeks if you don't pay back the loan on time. Fees for renewing the loan range from lender to lender. Most of the time these fees equal the fees you paid to get the initial payday loan. We ask lenders in our network to follow legal and ethical collection practices set by industry associations and government agencies. None payment of a payday loan might negatively effect your credit history.
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A cash advance, also referred to as a payday loan or payday advance, is a small, short-term loan that is intended to cover a borrower's expenses until the following payday. Cash advances are intended for short-term financial relief and do not constitute long-term financial solutions. Consumers facing debt and credit difficulties should seek out debt and credit advisory help. Consumers are encouraged to consult our Rates and Fees page to learn more about the risks involved with cash advances, local laws and regulations that may be applicable to cash advances, possible loan alternatives and recent developments in their state.
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