Many people are under the erroneous belief that it is not possible to get payday loans for people on benefits. While it is certainly not an easy thing to do, it is possible. In this brief article, I am going to talk about a few ways that you can borrow money even if you are receiving government support.
How to Get a Payday Loan While Receiving Government Benefits
Government Support Programs
Make no mistake about it; there are a ton of scams out there that feed on the misfortune of others. It is not difficult to understand why. When you need cash fast it is much easier to trust, and believe, that there are people out there that actually want to help you. As such, it is often a much better idea to simply start your research with the government itself.
Over the course of the past few years, state and local governments have started earmarking funds to help assist people financially. There are a number of program options that may allow you to borrow money for a new air conditioner, heating system, roof, or other miscellaneous home repairs. Take a few minutes and actually call your local courthouse to see what type of programs you may qualify for and if you can borrow money immediately.
Other Types of Lending Programs
If you receive government benefits you do not have to settle for bad credit lenders. You can, in fact, often receive extremely fair loan terms from highly respected and honest lending institutions. Let’s explore a few of the most popular places you can find payday loans for people on benefits.
Your Local Bank
Not everyone that needs a payday loan is a bad credit risk. Fortunately, most banks recognize and understand this. As such, as long as you have a relatively decent credit score, and can show the bank that you have the ability to repay the loan; it is not that difficult to get quick approval for a short-term loan.
Online Lending Institutions
It should come as no surprise that online banks can afford to lend money to riskier customers. Reduced overhead, and having a limited number of employees, allows online banks to loan a larger amount of money; even if you have a bad credit history.
Car Title Lenders
Car title lenders may not always be the best option yet they are an option none-the-less. Unlike the other types of lenders mentioned in this article, you will need to have free title to your vehicle in order to borrow money from these lenders. Pay close attention to the interest rate you are being charged as car title lenders have a bad rep for ripping their customers off.
Family Members
Despite the fact that Dave Ramsey recommends that you never borrow money from family, they may be able to provide exactly what you need at a fraction of the cost. When borrowing money from family members it is crucial that you clearly define the repayment expectations before the transfer of funds is complete. Money differences are a quick way to ruin your relationship!
Will You Qualify for an Instant Loan While on Benefits
Lending institutions weight a number of different factors when determining whether or not to lend you money. In addition to factoring in how much money you make each money they often look at the total amount of debt you have, your credit score, and even the length of your most recent job. If you cannot afford to repay the debt, however, the chances of you being approved decreases dramatically.
If you need money fast do not assume that you will not qualify. Payday loans for people on benefits are possible and are becoming more common every day.