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Loans for People on Benefits with Bad Credit Histories
The need to make ends meet in a hectic and financially stifling society looms over every working-class individual. With the average worker’s income not getting any higher and the overall price of daily expenses becoming more and more exorbitant, it is no wonder why many individuals have to resort to side jobs and relentless overtime. Short of working oneself to death, by the end of every payday, one is still barely left with enough to tide by until the next paycheck arrives. In most cases, workers who need the extra cash to persist will often resort borrowing money just to tide by. Because credit is strongly frowned upon by society, people who are in desperate need of money may not always have the leverage of being able to borrow from friend or relatives. In such cases, people will ultimately resort to applying for loans from lending firms in order to obtain the money they need.
Lending firms do offer a quick and easy solution to peoples’ financial dilemmas, although it is not without problems of its own. Since lending firms are designed to ultimately make a profit from the money that they lend, people who file for loans often undergo stringent screening protocols before they are even allowed to apply for a loan. In almost all lending firms today, an individual’s credit history, financial status, and means of employment are thoroughly scoured in order to ascertain whether or not someone is financially stable enough to apply for, and ultimately receive, a loan. This ruthless screening of those who are eligible versus those who are not has in and of itself created a problem for individuals who wish to avail of loans but are deemed too incapable of repaying their loans to even so much as be allowed a shot at borrowing money.
Lending companies, concerned about guaranteed returns on every outgoing loan, ultimately devised a system that would allow them to assess the eligibility of a potential borrower. Using previous credit history or their current form of employment (and sometimes even a combination of these two things), a ‘credit score’ was developed and implemented. Anybody who had a stellar credit score could avail of sizeable loans, whereas those who have less than stellar credit scores were allotted only smaller loans; individuals who had a thoroughly bad credit record were barred from eligibility.
With a lack of means to supplement a meager and insufficient income and no legitimate mainstream lending companies that would grant them much-needed loan that could solve the bulk of their financial problems, many individuals often resort to underground lending services, which are neither regulated nor guaranteed safe. Many underground lending firms often provide loans to people who have bad credit histories at exorbitant interest rates. Some underground lending firms may even be associated with criminal activity, making dealings with them not only dangerous, but also borderline illegal. Instead of providing reliable solutions to financial problems, associating with underground lending firms may often result in eventual bankruptcy or even deeper debts borne from exorbitant interest rates, erratic repayment rules, or underhanded dealings. This can be more problematic for individuals who rely predominantly on benefits to subsist, but who require the additional help of loans to get by.
Thankfully, there are now companies that specifically cater to providing loans and financial assistance to individuals who have bad credit history – more so persons who subsist on benefits.
Availing Loans While On Benefits – What You Need To Know
In response to the ever-increasing demand for lending companies that cater to persons of less than stellar credit history, a new market which specializes in providing far more accessible loans was created. In an attempt to combat the popularity of underground lending firms, many independent companies, and even some affiliate companies of conventional lending groups, devised a plan to cater to potential borrows regardless of credit history or financial status. What arose from this need were direct lending firms, guarantor loans, and secured loan services that allowed individuals to obtain the financial assistance they needed irrespective of their credit history.
Created to be the exact opposite of standard lending solutions, direct lending, secured loans, and guarantor loans did not look into an individual’s credit history nor did it decide one’s eligibility on one’s employment background or financial standing. This makes these solutions ideal even for individuals who rely on benefits for their daily living expenses.
How To Avail Loans While On Benefits
Because direct lenders do not screen you based on your credit history, and because they cater specifically to individuals who are not as financially able to avail of conventional loans, they also have applications protocols that allow for ease of access and fast processing time. The bulk of companies that provide these loans often rely on online application forms in order to process transactions faster. If you wish to apply for a loan, all that you need to do is to access the lending company’s website and fill in an online form that will ask for your pertinent details as well as the amount of money you wish to borrow. This is then sent to a team who will assess each application and process the approval and eventual release of the loan.
Without the extra fuss associated with conventional lending companies, direct lending firms will often allow for same-day processing and release of applications, making them ideal for individuals who are in a very tight financial situation. It should be worth nothing however that direct lending companies only offer small, short-term loans, with repayment protocols that only take several weeks to a maximum of two months to repay. Because they do not screen for credit history and typically cater to people who have bad credit, they cannot provide large monetary loans.
Advantages of Direct Lender Loans
Individuals with bad credit history can benefit largely from direct lenders in that they can freely avail of loans even while on benefits. This is an excellent and easily accessible solution for persons-with-disability, or for individuals who are for one reason or other currently unemployed. In spite of its higher interest rates, direct loans provide quick financial solutions without unnecessary delays, allowing people who desperately need assistance a better chance at weathering any financial difficulty.