How to get a loan when you’re on welfare

How to get a loan when you’re on welfare

Welfare doesn’t make you unentitled for all loans. Here’s how to match your options for borrowing money.

Welfare recipients have unpredicted expenses., and they might need to take out loans from time to time.

If you’re presently on welfare, you may wonder if you’ll be capable to get a loan. The good news is that you can. In this guide, we explore the kinds of loans you may be entitled for and how you can get them.

 

Loan choices for welfare recipients

It’s time to look for a lender that accepts your level of income and credit score. Carefully read a lender’s rules  before signing anything, and be willing to walk away if the interest rate or charges are too high.

Car title loan

With a car title loan, you put your car up as warranty — meaning if you fail to pay your loan, the lender can reclaim your car.

You can get this type of loan with bad or nonexistent credit, and income verification is typically minimal.

However, car title loans are known for extremely high interest rates.

Payday loan

A payday loan is usually given for a small sum, and you typically pay it back when you collect your next paycheck. Some payday loan companies accept welfare checks as an income source.

However, as with car title loans, watch out for high interest rates that could dig you deep into debt.

Get matched with a lender for a personal loan

Through online resources like Lending Tree and Zippy loan, you can enter your personal information to get matched with a lender who fits your credit and income profile. Check with your lender to see if they accept welfare income.

Banks or credit unions

Your bank or credit union may be willing to give you a loan if you’ve been a long time client without any marks on your financial history.

Consider online banks as well, which may offer lower interest rates.