Personal loans for low-income families can be that helping hand allowing them to keep the situation under control. At the same time, getting a certain minimum monthly income is a requirement that most lenders ask for.
How in this case families with fewer earnings can manage their financial difficulties? Keep reading this article to find out the answer.
Factors Taken by Lenders into Consideration
There are different factors considered by lenders when going through loan applications. Except for standard requirements for age and residence, there are also requirements applied to your job and salary.
You may be required to have a job for at least three months or longer. Also, your position matters. So, if you are a federal worker or a healthcare provider, your chances to get a loan increase.
An applicant’s salary must also meet a minimum amount requirement, which is usually about $1,000 but really vary, depending on the lending service provider.
There are plenty of lenders operating online, and you can check out their conditions on their websites. So, what do you do if the requirements for your salary exceed your possibilities?
Options Available for Low-income Families
If your salary does not match standard requirements, then you should be looking for companies, providing cash advance for low-income families.
They allow you to get emergency loans at reasonable conditions. Those companies are banks and different non-profits organizations, participating in the FDIC program.
This program allows giving small loans to customers of no more than $2,500.
Those are installment loans that you can take for several months. If needed, a loan term can be extended. An interest rate for such loans ranges between 14% and 18%.
Getting a Loan with Bad Credit
Having a low income is a problem itself, but what if it is also combined with poor credit history?
While you can still get such a loan from a non-profit organization, you will have to undergo certain checking procedures, and likely go through a special education course improving your financial literacy.
So, it is not the case when you can find non-companies running no credit check.
Also, you can apply for such loans when you are facing emergencies, such as bills to pay urgently or others.
Opting for Help from Online Lenders
It may be challenging to find a lender willing to give you money if you have both low income and bad credit.
However, it is still possible to get a secured loan, allowing you to get money at reasonable rates quickly. In this case, you will have to provide your lender with collateral, which one will be able to own if you do not pay off your loan on time.
It is surely not a first-choice solution if you need extra money, but this can help you get financial help quickly and also improve your credit score if you pay off your loan in full on time.
If your earnings are not enough to cover all your expenses, and your salary is too low to meet a minimum income requirement of some lenders, you should be searching for companies, operating based on the FDIC program.
They will offer you reasonable conditions, but you should be ready to meet all of their requirements. Finally, you can opt for a secured loan if other options are not suitable for you.
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