ePrivacy and GPDR Cookie Consent by Cookie Consent When do lenders accept benefits as income?

When do lenders accept benefits as income?

UK money

There are many misconceptions about the process of taking out a personal loan. Often people who may benefit from having one think that they would not be considered eligible for this type of credit.

One of the biggest obstacles to being accepted for a loan is the fact that many lenders set high salary thresholds before they will consider lending money to an applicant.

However, companies such as Everyday Loans offer packages specifically designed for people who are receiving various types of benefits.

As part of an overall assessment of income, the fact that benefits can play a part in deciding whether or not you are in a position to repay a loan can be a really positive thing for many people.

Specialist lenders

So called 'prime lenders' such as high street banks can set criteria that don’t reflect the current everyday situations many people find themselves in. Specialist lenders are more willing to look at cases on an individual basis and consider particular circumstances.

This means that there are deals available which can provide loans for people with a poor credit history.

Ability to pay

Whereas prime lenders only consider salaries and wage packets when it comes to assessing the ability to repay a loan, specialist lenders understand that many people manage budgets that rely on income from benefits and this should not be a reason to deny them a chance to gain access to credit.

A responsible lender we will always take the ability to repay the loan into account when considering an application and if you can prove that you are in receipt of regular benefit payments this can be included in the assessment.

Benefits income that a responsible lender will accept as income include: Universal Credit, Incapacity Benefit, Employment & Support Allowance (ESA), Disability living allowance (DLA), Severe Disability allowance, Reduced Earning Allowance (REA), Attendance allowance, Carers allowance, Personal Independence Payment (PIP), Industrial Injuries Disablement Benefit, Armed Forces Compensation - Guaranteed Income Payment (GIP), Child tax credit and working tax credit.

Tax Credits may also be included where it forms part of the applicant's net pay and family allowance benefit income doesn't need verification.

Posted in Personal Finance, Personal Loans on Nov 04, 2013.

Sam Foster

Written by Sam Foster - Senior Marketing Manager

Sam joined Everyday Loans in 2016 and has worked in various roles within the Marketing Team. He heads up Everyday Loans' direct-to-brand proposition and oversees all offline and online acquisition channels.

You may also like...

8 TIPS TO REDUCE YOUR CAR RUNNING COSTS

8 TIPS TO REDUCE YOUR CAR RUNNING COSTS

Along with everything else at the moment, motor costs are rocketing. It’s estimated Britain’s 36 million car owners spend around £3,000 per year running their vehicle. Expensive petrol prices, insurance premiums and the annual service, added to the c...

Open Banking: Revolutionising Financial Services in the UK

Open Banking: Revolutionising Financial Services in the UK

The financial services landscape in the United Kingdom is undergoing a transformative shift, catalysed by the emergence of Open Banking. This innovative approach to data sharing and financial integration is poised to reshape the way consumers and bus...

How To Make Money On The Side

How To Make Money On The Side

Making money on the side, often called a side hustle is becoming more popular in the UK. Having a small income stream alongside their main earnings allows people to supplement their income and provides more financial security. If you are thinking abo...

Terms of Use:

The Everyday Loans News and Blog area is for informational purposes only. The information provided shouldn’t be seen as advice. Using any information in the blogs or news articles is at the reader's risk.

The information posted is accurate and true to the best of Everyday Loans knowledge at the time of publication.

Everyday Loans doesn’t accept liability for the information provided on third-party websites. It reserves the right to edit, amend, or remove any post at any time without notice. The external links in the blogs are not affiliate links, and Everyday Loans won’t receive any commission if the reader clicks on the link.