Can I Get Christmas Loans for People Living on Benefits?  

Christmas is the popular occasion to celebrate the ties and the bonds in the best way. Some individuals begin Christmas preparations before a month, while some struggle.

Why? It is due to the financial instability, long-term unemployment and rising costs. Balancing finances and new Christmas expenses gets troublesome for such individuals. 

They find it hard to celebrate festivals as they did the previous year. Christmas is incomplete without the necessary items, sweets, decorations and invitations. It is where unemployed individuals seek ways to finance occasional requirements. They check their savings and seek extra part-time income and income from benefits to finance their needs.

However, it may not be sufficient for every time. Things like–shopping for gifts for everyone, invitations, decorations and renovation require a good lump sum. If you struggle to finance these as an unemployed and do not want to bother others for financial help, financial equipment may help. Yes, facilities like Christmas loans for the unemployed on benefits income may help counter the needs.

How do Christmas loans for the unemployed function?

It functions like other loans. However, it is for low-income earners who receive benefits and share a poor credit history. Christmas loans for the unemployed help out of job individuals finance Christmas-related preparations. Individuals can qualify for these loans by providing income proof. One must provide one reliable income proof apart from just benefits to qualify. It helps get quick loan approval.

Just like other loans, you undergo a credit check here as well. However, it does not impact the credit score. It is a soft credit check that helps the provider identify your affordability. You can get up to £5000 for your requirements without staking collateral. Moreover, you do not even need a guarantor to qualify.

The approval is solely income-based. You get the loan if you can afford the amount you need with your existing income. Lenders provide flexible repayment schedules to individuals with troubled finances. It helps you manage loan payments with proper budgeting.

Can you get Christmas loans for benefit on rental income?

Yes, you can get the loan on rental income. You must provide relevant proof of income apart from benefits to get the loan. It may include other earning aspects from part-time income. You can get Christmas loans on benefits income from the following income sources:

  • Rental income
  • Income from dividends
  • Income from self-employment
  • Income from filing surveys
  • Part-time teaching classes
  • Pension
  • Spouse income
  • Veteran pension
  • Disability support and income

What can you use the loan for?

You can use the loan for multiple purposes related to Christmas. This is because these loans are specifically for Christmas-oriented expenses and purchases. Thus, you can use the loans for the following things:

  • Fuel up and repair your car
  • Repair the existing backsplash and roof
  • Renovate the guest room and other rooms
  • Buying and stocking up on ingredients for Christmas dinner
  • Preparing gift boxes and surprises for loved ones
  • Booking tickets for holiday travel
  • Buying up apparel for yourself and your family

How do you get Christmas loans for benefits income smoothly?

Every lender requires proof of repayment before loan approval. It means you may get the loan if you can pay the dues. However, with unemployed individuals, ensuring regular income proof is challenging. Do not worry.

As these loans cater to unemployed needs, you only need to provide basic income proof. It must differ from the benefits or job seeker allowance you leverage. Let’s understand the best ways to improve your chances of getting Christmas loans for unemployed people:

1)     Analyse and boost credit prospects

Though credit score does not impact the loan amount directly, it hampers the overall interest rate you get. Individuals with low or poor credit history get competitive terms. Thus, improve your credit history by analysing the dualities, discrepancies and other aspects. It will help you know the debts, or bills you can pay. Paying bills boosts your credit history. It may work positively for your needs.

2)     Meet the eligibility criteria

Every loan provider sets criteria for the borrower to meet. The basic parameter helps the lender understand your credibility, individual status and nationality. If you want the loan, you must qualify the parameters like:

  • Must be a permanent UK citizen
  • Should have your name on the electoral roll
  • Must have earnings of at least 1000/month
  • Should have a relevant bank account
  • Must own the income from benefits slip
  • Should be able to provide decent income proof in the form of – part-time income, bank statements, and salary slips.
  • Should have a valid email ID and contact number
  •  Must not be unemployed for over 8 months

3)     Reveal attempts to improve income

It is one of the most crucial aspects of determining loan approval. It is because, as responsible lenders, they do not lend to individuals with insufficient income. It may hamper both lenders and the borrower’s interest. The borrower may struggle to clear the loan and eventually may default. Thus, providing responsible loans is a critical part of regulated lending.

You may get quick loan approval by revealing your income and attempting to improve it. Provide a recent offer letter or proof that reveals multiple part-time income sources. If you can provide that, you may get the loan hassle-free.

4)     Avoid using credit cards for the time being

Credit cards may be helpful for you to finance your needs without upfront payment. However, unemployment makes the situation worse. Having pending credit card bills only adds to the stress. Thus, avoid using credit cards as an unemployed. It may prove to be an unnecessary liability.

What if you cannot pay the credit card dues?

You may be liable for penalties and extra fees that may scorn the budget. Moreover, using credit cards for small purchases is not ideal. Instead, you can use easy loans in the UK marketplace for small and short-term expenses. It will help you finance your needs affordably. With no documentation, detailed credit checks, and same-day funding, you can finance any need quickly.

Bottom line

If you want to celebrate Christmas without worrying too much about finances, Christmas loans may help. You can get Christmas loans even if you leverage unemployment benefits. Some lenders provide the facility to help the unemployed finance their requirements hassle-free. With Christmas approaching near, it is one of the safest and quickest ways to finance your short-term needs.

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