Getting a small loan on UC

[Clear33]

Just wondering if any companies, like Sunny etc. offer small loans to people if they are on Universal Credit as their income?

 

 

Also which company is easiest to apply to as they have never had credit before and so I do not think they have built up a good credit score therefore...(not because of any bad credit). Doesn't just want to try companies and fail as I think this will build bad credit...

 

 

Thanks!

[Mr.P]

The interest rates offered by the likes of Sunny are nothing short of loan shark extortion. It is unlikely that using these companies will improve your credit rating either. I would recommend joining a Credit Union, building up a history of savings (even if it is only a pound or two each week), then securing a loan through them.

 

Some credit unions will offer introductory loans at reasonable rates (typically around 12% p.a.) depending on the individual's circumstances. Find your local C.U. here: http://www.findyourcreditunion.co.uk/home

 

 

Edit: Just had a look at a Sunny loan.... They advertise loans of £100-£950 at 24% over six months. Look at the small print, and that 24% is per month, and 1295% APR... OUCH !

[Clear33]

Thanks Mr.P

 

 

I note a loan can be obtaind through DWP after being on UC for 6 months and this can also be used to help with the costs of starting work as well as decorating/buying a new fridge etc. So that is handy to know - as I have seen a few caggers needing this...

 

 

I am disappointed that getting a loan through sunny etc. would not help to build up a credit rating. Perhaps better would be getting a little starter credit card?

 

 

As for the rates of the short term loans company - I agree, they are large - however I think they have been a lifesaver to me, occasionally over the years. Fortunately I have never missed the repayment which I think is when serious financial problems can happen and that makes me nervous. But having access to a £100 loan for an emergency and then paying back £134 in a months time - I think is very good and has been well worth it for me in the past.

[Clear33]

https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/budgeting-advance/

 

 

Here is the link in case it helps someone on Universal Credit - Budgeting Advance