At WageDayAdvance, we serve everyone. We only require that you live in the UK, are 18 years old or more, and earn a steady income, whether it is from a job, your own business, or government support.
Our process for applying for a loan, the rules for who qualifies, and the criteria for approval are the same for everyone, no matter where your income comes from.
This means that if you are getting government support, you can still apply for a loan without any problems. We take pride in assisting people who receive benefits or have had issues with credit in the past, and we strive to connect you with a lender who can meet your needs.
We will explain how our loan application process works, mainly for those who get benefits. We will talk about loans for people on benefits what we can offer you in terms of loan amounts and repayment periods, and which benefits count as income for loan purposes.
The Loan Application Process (for people on benefits)
Getting a loan through WageDayAdvance is straightforward. We’ve crafted a fast and simple way to apply that should only take about 5 minutes. The form is made for everyone, so it doesn’t matter if you’re getting benefits or working, the steps you’ll follow are the same.
First, go to our application page and enter your details. You will find a section for benefits as a type of income, along with choices for different job situations. You’ll answer some questions about how much money you make, your costs, and some personal info we need to handle your application.
After you apply, we will do a quick check with our loan partners to see if you qualify. This check will not affect your credit score or any loans you might apply for later. It is just to confirm your identity, not to examine your financial situation closely. Then, we will show you a loan offer, but it’s up to you if you want to take it.
You might get offered less than what you asked for, but whether you get benefits or not will not change how we handle your application.
Lending Amounts, Terms and More
Every person who applies for a loan is given the same options for repayment. You can borrow between £100 and £5,000 and pay it back over a period ranging from one month to three years. The opportunity to get a loan does not depend on your credit score, past borrowing history, or where your money comes from, like benefits. Instead, the main thing that matters is whether you can afford the loan after you have paid all your bills.
A gentle credit check, which does not affect your credit record, will be done for everyone who applies. This check is just to confirm your identity, not to examine your financial situation in detail.
Sometimes, you might be offered to borrow more money than you asked for. If this happens, you have the freedom to reduce the amount of money you borrow or the time you take to pay it back. This choice is also available to those who are applying for a loan and are on benefits.
Common Types of Loans for People on Benefits
If you are looking to take out a loan while receiving benefits, it is important to know which benefits count as income for lenders. Only benefits considered as income can be used when applying for a loan and making payments.
Lenders we work with do not need to know every benefit you get or the exact amounts. They just need your total income from benefits, your expenses, and what is left at the end of each month. This leftover amount mainly decides if you qualify for the loan. Here are the UK benefits currently seen as income:
- Disability Living Allowance (DLA)
- Child Benefits
- Universal Credit
- Child Tax Credit
- Severe Disablement Allowance
- Working Tax Credit
- Incapacity Benefit
- Employment and Support Allowance
- Personal Independence Payments
Remember, this list can change. Always check if your benefits can cover loans before applying. New benefits might be added, and old ones might get new names, so think of this list as just a starting point.
Moreover, those that are not…
In the UK, there are some benefits that cannot be counted as income, so they cannot be used to pay back loans or debts. Because of this, most companies that lend money, including our partners, will not use money from these benefits to decide if someone can get a short-term loan.
However, you might get one or more of these benefits while also earning money from a job. If that is your situation, you should only report your job income and how much you spend when you apply for a loan.
The benefits that fall into this category include:
- Pension Credits
- Job Seekers Allowance
- Income Support
- Housing Benefits
We still welcome loan applications from people who get any of these benefits. However, to get a loan approved by our partners, you will typically need another source of income, like a part-time job.
We will figure out if you are eligible for a loan in the same way we do for other applicants, without needing extra details or checks just because you get these benefits.
Loans for People on Disability
If you are not working due to a disability and receive financial support for it, you can still apply for a loan with us at WageDayAdvance. It does not matter when you started getting your benefits.
We treat money from disability benefits, like the Disability Living Allowance (DLA), as regular income. This means we use it to decide if you qualify for our loan options.
Should the Disability Living Allowance be your only income, just let us know on the application form. We will look at the DLA money as if it were a salary from a full-time job. At WageDayAdvance, we ensure everyone has an equal chance, regardless of their income source.
FAQs
What are loans for people on benefits?
People who rely on government benefits can sometimes struggle to make ends meet due to high costs. Loans for people on benefits can be a lifeline in such situations.
Different institutions offer loans specifically designed for individuals receiving benefits. These loans cater to specific needs and circumstances.
What types of loans are available for people on benefits?
There are a few types of loans that people on benefits can consider:
- Payday Loans: These are small loans with high interest rates, typically expected to be repaid when the borrower receives their benefits.
- Budgeting Loans: Available to those who have been receiving benefits for at least a year.