If you need some extra funding but unfortunately have low income of less than the median household income and can’t apply to a bank or credit union, consider low-income loans online. Though most lending companies require some proof of income, not all of them set high minimum monthly income level. Besides, you can find Payday Loans with No Income, or Car Title Loans with No Income Verification.
Table of Contents:
Best lenders that offer low-income loans
What you need to know about Low Income Loans
Who Qualifies for a low-income loan?
Best lenders that offer low-income loans
Though most lenders have similar loan approval requirements such as fair credit score, valid phone number, active bank account, some companies provide cash advance with simpler qualification criteria. Compare the lenders offering loans even to low income borrowers. Check their rates and terms:
|
Lender |
Loan amounts |
Rates |
Minimal Regular Income per month |
|
$100 - $35,000 |
4.99% APR – 17.5% MPR |
$1,000 |
|
|
$50 - $3,000 |
261% to 782% APR |
$1,000 |
|
|
$100 - $35,000 |
30% - |
$1,000 |
|
|
$1,000 - $5,000 |
Starting at 4.99% APR |
$1,000 |
|
|
$500 - $35,000 |
Starting at 5.99% APR |
$1,000 |
|
|
$100 - $5,000 |
Starting at 4.99% APR |
$1,000 |
|
|
$100 - $5,000 |
Starting at 6.63% APR |
$1,000 |
Choose the best rate for your low-income loan and apply online now:
What Is a Low Income Loan?
A “low-income loan” means any credit type designed for borrowers with income lower than the average or median income accepted in their community. In 2020, $68,400.00 was the median household income in the United States.
If you are looking for a low-income loan, you can apply for some government-sponsored programs to pay for college, buy a home, start a business or refinance existing debt. Or you can get emergency funding from a private lender offering low-income loans online or in-store.
What you need to know about Low Income Loans
In case you’ve made up your mind to apply for a low-income loan for urgent cash, you should consider some key details about this loan type in order to get the best deal.
- In making a lending decision the lenders take into account various factors besides applicants’ income. They are the ability to repay the money and debt-to-income (DTI) ratio.
- Lenders can increase the DTI limit to 30% or even 40%.
- Pay attention to available loan amounts so that you could qualify for the necessary sum.
- Compare the rates of the loan. Low-income loans may come with rather high APRs. Choose cheap options to make sure you pay back the loan with no consequent debt.
- If you want to pay less in monthly payments, choose long term loans such as Installment Loans or Personal Loans.
- If you have trouble qualifying for an unsecured low-income loan, use some type of guarantees. Apply for a loan with a co-signer, or secure a loan by some collateral.
Types of low-income loans
Low-income loans may turn out a bit more expensive than traditional loans from a bank, but they also come in various options to let you choose the best loan solution.
- Low-income Payday Loans. These are short-term small amounts of cash available with no minimum income or credit score requirements. However, their rates may come to $400 APR on average.
- Secured Car Title Loans with a vehicle title as collateral. Interest rates are lower, but you risk losing your asset if you fail to repay the loan.
- Unsecured personal loans seem a good option and may become really cheap if you have a good credit score.
- Small $1,000 - $3,000 personal loans. Again rates and terms may vary according to your credit history and other factors.
- Payday alternative loans from a credit union. Available only for credit union members.
Who Qualifies for a low-income loan?
If it’s a Government-backed program, applicants should prove that they have low income levels. Their median income must be lower than the median income for their area stated by the Department of Housing and Urban Development (HUD).
If you want to apply for a low-income loan form a private lender, you’ll just need to meet simple basic requirements:
- Being over 18 (19) of age depending on the state;
- Being the resident of the state where you apply for a loan;
- Having a valid phone number or e-mail address;
- Having an active checking account for direct money deposits.
What is the minimum income needed for a low income loan?
The minimum income requirements for a loan differ by lender. Some of them require only $12,000 yearly income while others ask for $35,000. But generally lending companies just need to know that you will be able to repay the loan on time. They can use various methods and criteria to evaluate your creditworthiness:
- Your credit score
- Credit history
- Debt-to-income ratio
While you get rejected by one lender, you can easily qualify with anonether. So, compare the offers and choose to apply online with just one loan request form that won’t affect your credit history.
How to get low income loans?
With online lenders it’s rather fast and easy to get a loan with low income. Follow 3 quick steps and the funds will be in your pocket same day you are approved:
- Compare multiple lenders, their rates, repayment terms and other fees to choose a low income loan that works best for your needs.
- Fill out a free application form online and get instant decision from a suitable lender.
- Once approved, receive the money within one or two business days.
- Since you got the loan plan your budget carefully and make sure you repay the money taking into account your low income.
What alternatives to low-income loans can you consider?
When you need urgent cash, fast emergency loans may not always provide help because of your low income.
Fortunately, there’re numerous other options besides low-income loans available for quick financing:
- Help from friends or family.
- Government assistance or help from non-profit state and local organizations.
- Cash advance loans from your credit cards.
- Credit cards.
- Credit union loans.
Bottom line
When you live on a low income and to make things worse get some unexpected expenses it can be really stressful. Choosing low-income loans for emergency cash be careful to apply for cheap loans form legitimate companies. Consider all the options first to make the only right decision possible. Take into account all the factors – loan rates, terms, monthly payments, additional fees – to ensure timely repayment of the loan.
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