Most individuals receiving government benefits like unemployment, Disability allowance, pension credits, and housing benefits are social welfare recipients. These benefits help individuals with certain circumstances and low income meet critical life needs. However, the government assistance may not prove sufficient every time.
Certain situations may demand more than you can arrange for. For that, one searches for the best loans available but fails. Yes, getting one without a specific income and utter dependence on welfare payments is challenging. However, bad credit loans may help you there. You can tap it to bridge the needs despite pending debts or low income. You can get one also if living on social welfare helps.
Who qualifies as a social welfare recipient?
Every individual receiving government benefits or any other may not necessarily qualify as a social welfare recipient. However, if you have any of the following conditions, you may be eligible for social benefits:
- Working or seeking employment opportunities- Universal credit
- People with disabilities- Disability allowance
- People receiving a pension- pension credit
- Retirees
- Single parents
- Carers- individuals who take care of disabled people
- Refugees and those with temporary protection
Why you may need a bad credit loan?
Do you ever encounter difficulty with bill payments? Do you struggle to save enough for emergencies and bills? Do you often suffer loan rejection due to poor finances? If yes, then a bad credit loan may help. It is especially for individuals with pending bills, low income, and those living on benefits. Here is how a bad credit loan may help individuals receiving social welfare benefits:
Counter household emergencies
Getting timely cash for medical, car repair, short-circuit, and bill payment is important. A minor delay may aggravate the situation. Thus, a bad credit loan may prove helpful there. You can check the best loans and get one the same day without worries.
Repairing or replacing appliances
If you have been delaying the oven repair for a long time, then it could be a good time. You no longer must depend on your benefits alone. Instead, get instant help from bad credit loans. It helps you get cash for any minor repair without many document requirements. For example, if you expect guests to be around with a malfunctioning fryer, consider the loan. It may help you fix the deal quickly. What could be better than the last-minute embarrassment?
Managing medicine bills
Whether it’s you or your pet, both require consistent medical care to stay healthy. Not having sufficient cash backup may hinder timely help. It may affect your health more. If you need cash fast, rely on bad credit loans. You don’t need to engage in lengthy form-filling or verification. Instead, you may get the loan with a valid income proof.
Can I get 100% approval with a bad credit score?
Yes, you may get bad credit loans with guaranteed approval if you can reveal your capacity to repay the dues on time. For that, you must pass the basic credit assessment, which does not affect the credit score. It instead helps you understand whether you may get the loan. Here is who may het 100% approval on the bad credit loan:
You are 18 and above as an Irish citizen
You generally need to meet the basic age and citizenship requirements. Individuals 18 years of age and above may qualify. To prove that, you must have a valid passport/voter card/ driving license. You can also provide council tax proof as evidence of current residence.
Your income is more than your expenses
It is the rule of thumb to get instant approval on the loan. Your monthly expenses should be less than your total income per month. It reveals your potential and the financial flexibility to repay the dues on time. It helps you make monthly payments without impacting your basic budget.
Do not 100% depend on social welfare benefits
Yes, you may get the loan if you receive social welfare benefits. However, depending solely on the benefits may prove a clear turn-off for the loan providers. Here, individuals with a secondary income source, like part-time income, may get the preference. Therefore, try to explore gigs to get instant cash help. It is because the creditor wants to check whether you can repay the dues on your own or depend on the government’s assistance.
Have a valid social welfare benefits proof
If you receive government benefits, then you must be able to prove that. Ensure that you have the proof of the latest benefit income that you receive. You should also be ready with the bank account details and the bank statements to prove yourself as a recipient. Always get a receipt for the social welfare benefits that you receive.
You have small money requirements.
Usually, loans for social welfare recipients have a payout limit of €5000. It is because of the low income and affordability capacity. Moreover, every loan provider wants to ensure a comfortable loan agreement for the borrower. This is why one may get only an amount that you can repay comfortably. Thus, one may consider a bad credit loan for small and emergency requirements.
How can social welfare recipients get a loan fast?
Getting a loan on a social welfare benefit is challenging due to a poor credit score and low income. Let’s first understand how you can improve the chances easily:
| Strategy | Why it works | Actions to take |
| Try to build a credit history. | Reveal the repayment reliability and help with instant approval | Pay bills timely by paying the one with the highest interest first |
| Proof of stable income | Eliminates the risk for the loan provider | Provide income proof in the form of social welfare benefits and part-time income. |
| Apply for a low amount. | A low amount means less risk for the loan provider and the borrower. You may pay low interest eventually. | Choose an amount that comfortably meets your needs without affecting the budget. |
Apply for a low amount
Choosing an amount less than you need may help you get the loan immediately. For example, if you need a small but urgent loan to fix the wires, check quick loans online with bad credit scores. If your loan needs are €800, borrow only €700 or less. However, it should not be too low or insufficient to meet your needs.
Provide a stable recipient slip
A valid and authentic social welfare benefits slip may get you instant approval. Therefore, check and keep a copy and the original documents ready before applying. Note that you can never get more than what you earn as benefits.
Provide a guarantor
If you need a loan of more than €3000, you may need to provide a guarantor. He could be a person with a consistent income and a good credit score. He may help you get a higher amount despite a bad credit history and low income. However, you must share a good relationship with the person.
Bottom line
These are some of the fresh ways to qualify for a bad credit loan with social welfare benefits. Yes, it is generally challenging to get a loan in such a situation. But keeping updated documents and applying wisely may help.
