Despite having an urgent need to borrow money, your application for a DSS crisis loan has been declined. The rules are strict, and so not everyone is going to qualify. However, don’t despair as there are several viable private sector alternatives that are specifically designed to help you to deal with your short-term financial issues.
Cash loans for unemployed people or low income earners are available for any purpose from payday companies, pawnbrokers, credit unions and doorstep lenders. These are not interest-free, but they are a way of getting a quick cash advance with bad credit when you’ve been declined elsewhere.
Finding a Government-funded Alternative to a DSS Crisis Loan with Bad Credit
Before proceeding with a private sector rapid cash advance, it’s worthwhile noting that the UK government offers cash loans for poor people. You may be able to borrow upto £500 at a typical rate of 29.9% APR. You’ll be expected to provide bank statements and details of your personal expenditure.
No Credit Check Private Sector Alternatives to a Job Centre Crisis Loan
Doorstep cash loans: Unlike most other sources of credit, you’re able to borrow £500 and spread the repayments over up to 52 weeks. While this will increase the amount of interest that you pay, it does improve affordability. Repayments will be collected from your home by a local agent.
Payday quick cash advance: Even if you have a poor credit history, you may be able to get a payday cash loan for up to £1,000. Most lenders prefer you to have a job, but some lend customers a reduced amount when they’re on state benefits. Your quick cash loan is completely unsecured.
Credit union loans: In order to get a very bad credit loan, you’ll need to become a member. People join based on a shared common interest, such as work, religion or locality. Interest rates tend to be more competitive and you’ll also receive help and guidance if you experience financial difficulties.
Pawnbrokers: If you’ve got collateral, such as gold or silver, you can borrow money against this. After the item has been valued, you’ll be able to get a fast cash loan within just minutes. The item will be held by the pawn shop so if you fail to clear the principal and interest that has accrued, it will be sold to clear the debt.
Credit card cash advance: Most issuers allow you to withdraw a defined percentage of your credit limit from an ATM machine. The rate of interest will be slightly higher and there will normally be an administrative charge, but it remains a cheaper way of borrowing money with bad credit for those who have an active card.
Important Considerations Before You Apply for a Crisis Loan Alternative
While a DSS crisis loan is free from interest, borrowing money from the private sector certainly isn’t. Pawnbrokers and payday lenders aren’t lending bad credit customers money because they’re benevolent, they’re doing it to make a profit. The interest rate you’ll pay is widely regarded as usury.
Loans for unemployed people and low income earners can help you out of a short-term financial hole, but they aren’t a long-term solution to your money worries. You’ll normally be expected to repay the money you’ve borrowed about a month later and this will leave less money to pay the bills in future months.