Receiving Universal Credit does not automatically rule you out. Some lenders on our panel consider benefit income as part of your overall affordability.
One soft search compares a panel of FCA authorised lenders and brokers based on your circumstances, with no impact on your credit score. A hard credit search is only carried out when you formally apply to a lender which can affect your credit score.
How Universal Credit counts
Lenders look at whether repayments are affordable from your total income. Many will consider regular benefit payments, such as Universal Credit, alongside any other income you have.
- Regular benefit income can count towards affordability
- Lenders assess your income against your outgoings
- A stable, verifiable income helps your application
Borrowing responsibly on a tight budget
If money is already stretched, it is worth checking whether there is a lower cost option first, such as a Budgeting Advance from the DWP or free guidance from MoneyHelper, before taking on new borrowing.
What a loan would cost on a tight budget
If your income is already stretched, affordability matters more than ever. Look closely at the total amount repayable over the whole term, and only borrow what you can comfortably manage alongside your essentials. High cost short term credit is capped, so you can never repay more in interest and fees than you borrowed.
Other support worth checking first
Before taking on new borrowing, it is worth seeing whether lower cost support is available to you.
- A Budgeting Advance from the DWP, repaid from future payments
- Your local council's Household Support Fund or welfare scheme
- Free, impartial guidance from MoneyHelper
How to apply
Borrowing responsibly
Before you apply, check the repayments sit comfortably alongside your other commitments. Look at the total amount repayable over the whole term, not just the monthly figure, and only borrow what you genuinely need.
Every lender on our panel is authorised by the Financial Conduct Authority, and high cost short term credit is subject to an FCA total cost cap, meaning you cannot repay more in interest and fees than the amount borrowed. If money is tight, free and impartial help is available from MoneyHelper.
Representative Example: £1,000 borrowed for 18 months. 17 monthly repayments at £87.22, final repayment of £87.70. Total amount repayable £1,570.44. Interest total £570.44. Annual interest rate 59.97% (fixed). Representative APR 79.5% (Variable). Any representative monthly repayment shown is for illustration only, based on our representative APR. Your actual repayments will be confirmed by the matching lender if your application is approved.