Even (or perhaps correct) if you have a benefit, you may end up in a situation where you suddenly need some extra money. For example, because an expensive repair has to be paid to your car, your roof is leaking or your refrigerator has broken down overnight. Of course you know that it is wiser to spend your money after you have first saved it up, but in some situations a solution has to be found quickly. And since there is a price tag on most solutions … Well, sometimes you can’t escape to borrow an amount. And arranging that loan is sometimes more difficult than you think.
Borrowing money with benefits is not easy!
If you are temporarily out of work or if you are dependent on benefits for another reason, you will soon discover that most lenders are reluctant to work with you. From the lender’s point of view, that may also make sense: after all, a lender is not a philanthropic institution, but rather a company that also wants to be sure that the money lent will return in the long run. Especially people on benefits do not generally have it wide, which means that the chance that they will not be able to repay a loan once they have taken out is realistic. As a result, financial institutions are often reluctant to lend money to people with a narrow purse. There are also exceptions: the municipal credit bank, for example, only lends to people who cannot get a loan elsewhere. So if you really cannot arrange a loan, you can always turn up your light at the GKB.
Your living situation
If you receive benefits, your living situation will largely determine whether or not you can get a loan. Borrowing money with a benefit is after all a lot less risky (from the point of view of the lender) if there is still a partner with a regular income behind it. Anyone who has both a WIA benefit and a partner with a job will often be able to get a loan easily. This also applies to people on unemployment benefits, but good prospects for the future. On the other hand, if you and your partner live on social assistance, there will be few financial institutions that want to work with you. The risk for the lender is simply too great.
Credit providers who do lend money to people on benefits will often use a lower borrowing capacity (which means that the total amount that you can borrow is lower) and perhaps charge a higher interest rate. Even if you have a benefit, it is also wise to compare several providers with each other instead of borrowing money from the first one. When comparing, look not only at the amount that you can borrow, but certainly also at the payment conditions, the term and the interest charged.