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Securing a Loan While on Universal Credit

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Securing a Loan While on Universal Credit

Are you trying to secure a loan while on Universal Credit? Dealing with emergencies can be taxing and burdensome, leave alone the time and effort required in securing a loan while on Universal Credit.

In most cases, those who apply for Universal Credit must wait for weeks at a stretch to get the funds released, which can be challenging for those stuck in emergency situations.

Since Universal Credit is still in the implementation phase, there are many questions that people tend to ask us. Particularly, when they are scrambling to pay off their bills until the Universal Credit arrives in their bank accounts. If you are stuck in that tight spot, then don’t worry! We have a solution for anyone who wishes to borrow a loan and is struggling financially. Money Pig is highly regarded by those belonging to low-income groups or having problems with their credit history. So, if you are stuck in an emergency, you can always turn to us and we’ll do all that we can to help you out.

Also, we have dealt with some panic-stricken customers who were granted Universal Credit but had to deal with an emergency. This made them worry about securing a loan while on Universal Credit, so we decided to address all the questions that you may have in this regard. Money Pig understands how difficult these times can be and therefore we bring you a comprehensive guide to inform you all that you need to know about securing a loan while on Universal Credit.

FAQs on Securing a Loan While on Universal Credit

  1. What is Universal Credit?
  2. Who can get Universal Credit?
  3. How much Universal Credit can I get?
  4. Can I get Universal Credit while divorcing or separating?
  5. How much Universal Credit can I get if I have children?
  6. Can I secure a loan while on Universal Credit?
  7. Who can get a Budgeting Loan?
  8. What is a Budgeting Advance?
  9. For what purposes can I borrow a budgeting loan or a budgeting advance?
  10. How much budgeting loan can I borrow?
  11. How long does it take to get a Universal Credit?
  12. Can I secure a loan from you while receiving Universal Credit?

universalcredit

What is Universal Credit?

Universal Credit is a benefit available to those who have a low income or are currently unemployed. These benefits are primarily granted by the UK Government to help cover up your living costs, while you cannot do that on your own. At present, the Universal Credit system is all set to replace several other benefits such as Income Support, Housing Benefits, Jobseeker’s Allowance (income-based), Employment and Support Allowance (income-based), Child Tax Credit, and Working Tax Credit.

So, if you are stuck in a difficult situation and are unable to support yourself or your family, then you might be eligible to apply for Universal Credit. As the UK is currently transitioning into this one single benefit to replace several others, it is still in the transitioning phase and the complete implementation is scheduled to be complete in 2022. Therefore, it may seem complex at first, but when you start filling in your online application, it becomes a whole lot easier.

Who can get Universal Credit?

Usually, those who find it hard to pay for their living expenses qualify for Universal Credit. So, your financial condition determines your eligibility for this benefit. If you and your partner or spouse have savings below £16,000 or are unemployed, then you may qualify for this benefit. So, this benefit is available to those who belong to the low-income groups or those who are unemployed. Also, in most cases, you must have completed at least 18 years of age (with few exceptions) at the time of applying for the Universal Credit. Also, it is a mandatory requirement that you currently live in the UK and are below the applicable state pension age. Finally, the Universal Credit is not calculated on a per-person basis but is calculated per-household because it is strictly designed only to cover your living expenses in the UK.

How much Universal Credit can I get?

The amount of Universal Credit that you qualify for depends on several factors such as your age, relationship status, number of children, etc.… That’s because the Universal Credit is a benefit granted per household and is therefore calculated accordingly. So, the key deciding factors are your age and the size of your household. So, if you are single and haven’t completed 25 years of age then you qualify for only £342.72 per month, but if you have a partner or spouse who is also under 25 years of age, then you qualify for a total of £488.59 per month. However, if one of you or both of you are above 25 years of age, then the two of you qualify for a total of £594.04 per month.

Likewise, if you are over 25 years of age but are single, then you qualify for £409.89 per month. As you can see, the money does not increase but decreases when you are applying together, which makes sense because when you live jointly, your living expenses are calculated on a combined basis. You also get extra allowance per child, but that calculation is again based on when the child was born and the number of children you have. In most cases, you qualify to apply for a Universal Credit only for the first two children, unless they are born before April 6, 2017. For the first child, you qualify for a monthly entitlement of £281.25, and for others, it is £235.83. However, there are certain exceptions to this rule.

If that sounds too low, then your only other option is securing a loan while on Universal Credit. A single loan application filed with Money Pig can connect you to several licensed and ethical direct lenders. We facilitate emergency loans, same day loans, bad credit loans, and several other loans with minimal formalities.

Can I get Universal Credit while divorcing or separating?

Yes, you can get Universal Credit while divorcing or separating, but only if you belong to the low-income group or are unemployed. You can very well notify the concerned Authorities about your current status and claim Universal Credit as a single person. However, you must not hold savings or capital in excess of £16,000 while applying for this benefit. If you have children that you are taking care of as a single parent, then you may also be able to claim child and childcare benefits. So, whether you are in the process of separation or have already separated, you may still be able to claim Universal Credit.


How much Universal Credit can I get if I have children?

Looking after your children in the UK can be very expensive and therefore the UK Government allows certain childcare benefits to parents belonging to low-income or unemployed categories. So, depending on when the child was born and how many children you already claim benefits for, you may or may not be able to make your claim. Most people find it difficult to understand child and childcare benefits and therefore, let us simplify it by discussing the provisions based on three scenarios.

In the first scenario, let us assume that all your children are born before 6th April 2017, and regardless of how many children you have, you would be able to claim childcare benefits for every child. In the second scenario, let us assume that your children are born after 6th April 2017. In this case, there is a limit of two, so you can claim childcare benefits for only up to two children unless your case falls under certain special circumstances. In the third scenario, if you are taking care of a disabled child or severely disabled child, then it does not matter how many children you have or when the child was born. Any parent or qualifying person taking care of a disabled child under 16 years of age, is entitled to extra funds.

Before making a claim, it is important to understand who is categorized as a ‘Child’ in the UK. All individuals aged under 16 years of age are categorized as ‘Children’. In addition to that, also those who have not completed 20 years of age and are pursuing certain training or education qualify for this benefit. However, you need to keep the HMRC informed about what your children aged above 16 years are currently training for or studying.

Can I secure a loan while on Universal Credit?

Yes. In fact, most people consider securing a loan while on Universal Credit in order to manage their finances and if you are in that tight spot, then you need to make some tough decisions. To begin with, there are two ways of securing a loan while on Universal Credit. The first one is through the Government, which is called a budgeting advance and the second one is from direct lenders, in which case, Money Pig can help.

To apply for a budgeting loan, you need to fulfill certain pre-determined criteria, which you may or may not qualify for. As in the case of most Government benefits, the procedure is rigid and slow and if you are in a hurry, then we recommend that you consider the second option. Money Pig is a reliable intermediary that connects you with several reliable direct lenders for free. These lenders are licensed to lend in the UK and advance loans to those with all types of credit scores. Since your finances are messed up and you belong to the low-income group, it is more than likely that your bank would turn you down. However, Money Pig partners up with some of the best direct lenders who would evaluate your skill set and previous experience to assess your repayment capability. So, regardless of the type of credit history that you have, simply fill in the free online loan application on our website. It takes only a couple of minutes for you to do that and the funds are released much faster.

Who can get a Budgeting Loan?

To be eligible to apply for a budgeting loan, you must be availing income support, Employment Support Allowance (income-based), Jobseeker’s Allowance (income-based), or Pension Credit. Also, there are certain disqualifications that may make you ineligible to qualify for a budgeting loan. If you currently receive Universal Credit, then you cannot claim a budgeting loan but will have to claim budgeting advance.

Additionally, those who have participated in lockouts, strikes, or other industrial actions are disqualified from applying for a budgeting loan. Also, those who still need to repay over £1,500 borrowed as a crisis loan or as budgeting loan cannot make a fresh application until they repay it. In case you plan to shift from any of the abovementioned benefits to pension credit, the time period is calculated from the time when you were getting the initial benefit. Therefore, the aggregate period would be taken into account and that must be for six months or more.

If you do not qualify for a budgeting loan, then applying with Money Pig may be of use because we have an entire network of direct lenders willing to offer you all types of short term and long term credits. This includes some interesting options like emergency loans, same-day loans, bad credit loans, and student loans. Regardless of your type of employment, you may qualify for one or more loans offered by our network of lenders. So, if you have been considering securing a loan while on Universal Credit, do take out a few minutes to fill and submit our free online loan application. We have a high loan application approval rate of over 92 percent and for all you know, we may be able to find you a good deal.

What is a Budgeting Advance?

Budgeting Advance refers to your Universal Credit being paid in advance to help you deal with a sudden expense. The minimum amount that you must claim is £100 and the maxima depends on your relationship status and the size of your household. Those who are single can claim up to £348, couples can claim up to £464, and those having children can claim up to £812. However, the concerned Authorities may or may not grant the entire amount, depending on your need and other circumstances.

To be eligible to borrow a budgeting advance, your income for the previous six months must not exceed £2,600 for single applicants and £3,600 for couples. Also, you must have paid off all the previous budgeting advances that you may have borrowed. Finally, you must be borrowing Universal Credit, income support, Employment Support Allowance (income-based), Jobseeker’s Allowance (income-based), or Pension Credit for a period of six months or more in order to qualify for a budgeting advance. This condition does not apply to those who wish to borrow the money to continue their job or to kick start a new one.

Do not let the troubles that come in the way of borrowing a budgeting advance discourage you from your future aspirations. Money Pig partners up with several direct lenders who are licensed by the Financial Conduct Authority (FCA). We have the expertise and resources required to channelize your application to the one who is most likely to approve your loan. Whether you have a bad credit history or unstable employment that is making things difficult for you, we may be able to help. As our loan processing services are absolutely free for loan applicants, do not hesitate to fill in your loan application with Money Pig if you have been considering securing a loan while on Universal Credit.

For what purposes can I borrow a budgeting loan or a budgeting advance?

Budgeting Loans and Budgeting Advances must be borrowed in very desperate situations such as in pursuance of your efforts to get a job. This could be for clothes, accommodation, traveling, or childcare while you are trying to get into a job. You can also claim budgeting advance for other constructive purposes such as improving the security of your home.

Additionally, you can also borrow this loan to purchase essential items such as essential furniture like cot, pram, and other essential home appliances. You can talk to your work coach about this or apply through your online Universal Credit account. If you are really trying hard to get a job, then you may be granted a budgeting advance even before six months of being on Universal Credit. That’s because the Government always aims at encouraging those who wish to work hard and support themselves and their families.

How much budgeting loan can I borrow?

Those having children can claim a maximum budgeting advance of up to £812, couples can claim a maximum of £464, and single applicants can claim up to £348. However, you cannot claim a budgeting loan below £100 and must claim above that depending on your needs. The Authorities may or may not grant the entire amount that you request for. So, with that in mind, put in your application for a budgeting loan, which may take up to three weeks or sometimes more to be credited into your account. That makes it extremely unsuitable for those who are stuck in emergency situations or are in a hurry. However, if you are keen on securing a loan while on Universal Credit, Money Pig can provide you with the necessary assistance. You can apply online for a loan and we’ll make it a point that the entire loan approval process is carried out within a few days. We also offer loans that you can apply for and are sanctioned on the same day.

How long does it take to get a Universal Credit?

Usually, it takes about five weeks from the day when you raise your claim by filling the online application form. It depends on how long the queue of in-process Universal Credit Applications is. You can know this by the number that displays on your online application, so do not refresh your application as that could take you to the end of a queue all over again and increase your wait time. Instead, wait patiently or consider borrowing an external loan to manage your expenses until then. Money Pig can put you through a licensed direct lender willing to advance bad credit loans to help you through these tough times.

Can I secure a loan from you before getting Universal Credit?

Yes, you can apply for a loan from Money Pig before your Universal Credit is transferred into your account, and that too for free. Money Pig does not charge you any loan processing or approval fee and helps you in securing a loan while on Universal Credit, or while waiting for Universal Credit. We do this by strategically connecting you to the most appropriate lender, which minimizes the time involved in the loan approval and sanction process. We know what our network lenders expect from loan applicants so Money Pig can forward it to the right lender.

Applying with Money Pig can open up several doors for you regardless of your credit history and help you get back on your feet. So, if you can’t wait longer, consider applying for one of our fast loans, emergency loans, same-day loans, or bad credit loans. In case of urgency, we can even connect you to a lender willing to sanction your loan and release the funds on the same day. We make this possible by working with direct lenders willing to transact online with minimal formalities.

Money Pig makes securing a loan while on Universal Credit much faster by speeding up the entire process. We firmly believe that time is money, and therefore we provide prompt and timely financial assistance through renowned direct lenders. So, if you are struggling with your finances due to unemployment, insufficient income, or due to any other reason then do not forget to contact us. For the best deals on emergency loans, fast loans and same day loans, Apply Now.