What Are Online Low Income Loans?
As the name suggests, online low income loans are a type of loan designed to help people with low income to get funding for various purposes. It can also be used by people with bad credit, who would otherwise struggle to access loans from other sources.
These online lending services can be obtained through loan marketplaces like WeLoans, with an easy application process, minimal requirements, and can release funds faster than a traditional loan. Applicants can usually receive the cash they need within 24 hours after the loan request has been submitted.
What Are The Available Loan Options On WeLoans If I Have Low Income?
WeLoans is a registered and reputable online lending service platform that offers a wide variety of loan products available for low income earners with all credit conditions. Here are some of the most popular loan options you can choose from on WeLoans:
- Payday loans. WeLoans offers fast and easily-accessible pay advance services using your incoming paycheck as a guarantee, so you can borrow a proportional amount of money, usually not over 25% of your net earnings, even if you have a low income as long as you can pay it back.
- Centrelink loans. Borrowers taking Centrelink can take out dedicated loan services designed for Centrelink receivers through WeLoans, often with affordable loan terms and low-interest loans. Note that our partner Australian lenders will only accept applicants whose Centrelink benefits account for less than 50% of their overall income.
- Loans for pensioners. If you are receiving pensions or other kinds of government benefits, you can also apply for pensioner loans from specialised lenders that are experienced in providing loan services for benefit recipients.
- Bad credit loans. WeLoans partners with lenders that will not consider your credit score as a major factor when assessing your creditworthiness. What matters more is your ability to pay. With stable sources of income, getting approved for bad credit loans through WeLoans and receiving funds can be a piece of cake.
- No credit check loans. While partner lenders at WeLoans will still do a soft credit check to assess your financial profile according to the national regulations, they won't do hard credit pulls that can further harm your score in most cases. No credit check loans are usually simple to apply for and easy to approve, with all credit conditions accepted.
What Is The Income Requirements To Get Low Income Loans?
The income requirements to get online low-income loans can vary depending on specific lenders, and they typically range from $600 to $1,200 a month, some may require up to $3,000 per month. Some lenders may have additional minimal income requirements, while others don’t.
The requirements for income level may also vary depending on the loan terms. For most short-term loans with higher risks involved such as payday loans and cash advance products, lenders may require applicants to have higher monthly income compared to long-term financial solutions including online unsecured personal loans.
In most cases, lenders offering loans to those with lower incomes will usually limit the loan amount and terms, as well as conduct thorough assessments. Despite the name, it does work similarly to other loans after all in that the higher your income, the more likely you will be approved.
Can I Still Get Low Income Loans With A Bad Credit Score?
Yes, you can get low income loans with a bad credit score. However, before submitting your loan requests, it is always a good idea to check your credit report first and have an idea about exactly how bad your credit score is.
Take Experian, one of the three major credit rating agencies in Australia, as an example. Their credit score measurements range from 0 to 1000.
- 0-549 – Below average
- 550-624 – Far
- 625-699 – Good
- 700-799 – Very good
- 800-1000 – Excellent
Although it is indeed challenging to get loans if you have a below-average credit score, it is not impossible if you work with WeLoans.
Lenders within our network will evaluate applicants not only based on credit score but on additional aspects including employment status and stable sources of high or low income, as well as assets and properties under the applicants' name, as repayment capacity is the most important factor when getting loans online.
How Do I Know Which Low Income Deal To Pick?
When selecting a low income loan, it's important to compare each loan offers based on several aspects to ensure you are getting the best deal that suits your needs. Here are some of the most important factors to consider when looking for affordable loan deals:
- Interest rate. The interest rate may vary depending on a variety of factors such as your personal financial status, loan type, loan amounts and loan term. It is rather essential to compare interest rates between loan offers as it may affect the overall cost of the loan.
- Loan term. The loan term denotes how long you have to repay your loan. The longer the term, the lower the repayment pressure as well as the lower the monthly payments. Some long-term loans may stretch up to 5 years to repay.
- Other charges. Most online lenders in Australia will charge standard monthly fees and establishment fees. Other fees may include application fees and late repayment charges. Pay additional attention to the related charges when assessing the loan offer and signing the loan agreements.
Popular Uses of Low Income Loans
Low income loans are designed to assist people when facing financial difficulties to let them access the resources they need at any given moment. Here are some of the most popular uses:
- Large expense. In case you have a large expense that isn’t quite accounted for in your monthly budgets such as buying a used car or an important ceremony like a wedding, you can use low-income loans to supplement your resources until you can pay it back.
- Emergencies. Sudden medical bills, car breakdowns, or home repair needs might require immediate attention. Online low-income loans can easily help you solve these issues before the situation become worse.
- Education. Most online lenders won’t limit your use of the money you borrowed, so you can use the low income loan to continue your education.