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Loans for People on Benefits and Bad Credit

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  • Borrow £1,000 to £8,000
  • Repay over 12 to 60 months
  • Check eligibility with no impact on your credit score
Check my eligibility now This won't affect your credit score

Representative example: Amount of credit £2,000 for 24 months. Interest rate: 41.2% pa (fixed). 24 scheduled monthly payments of £123.64. Total amount payable: £2,967.43 Representative 49.9% APR.

Can I apply for a loan if I’m on benefits and have bad credit?

If your income includes benefits and your credit history is not perfect, finding a personal loan can feel difficult. Some lenders may focus heavily on a single score or automated rules.

At 118 118 Money, we’re a direct lender and we look beyond just your credit profile. If you pass our credit and affordability checks and the repayments are affordable, you may be eligible for a loan.

If you’re not sure where you stand, start with our eligibility check. It lets you see whether you are likely to be accepted before you apply, and it won’t affect your credit score.

How the affordability check works (in plain English)

Affordability is about whether the monthly repayments are manageable. As part of the process, we’ll assess your income and outgoings to help make sure the loan is right for you.

This matters especially if your income varies, or if you’re balancing priority bills alongside everyday costs.

What can impact eligibility when you have bad credit?

Bad credit can mean different things. It might be caused by missed payments, defaults, CCJs, using a lot of available credit, or having a limited credit history.

Every application is assessed individually. If accepted, keeping up with repayments can demonstrate positive repayment behaviour over time.

Check your eligibility before you apply
See whether you’re likely to be accepted for a loan without affecting your credit score.
Check my eligibility This won't affect your credit score

Credit is subject to status, affordability and credit checks. Credit is only available to UK residents aged 18 and over. Terms and conditions apply.

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A straightforward way to apply

If you’re looking for loans for people on benefits and bad credit, these steps can help keep things simple:

1) Start with eligibility. Get an indication before you apply. No impact on your credit score.

2) Complete your application. Provide accurate income and outgoing details so we can assess affordability.

3) Get your money. If approved and set up, you could receive funds in as little as 15 minutes.*

*This can vary from 15 minutes to 2 hours depending on your bank.

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Benefits and Bad Credit Loan FAQs

Potentially, yes. If accepted, 118 118 Money will assess your application using credit and affordability checks to help ensure repayments are manageable.

No. Our eligibility check lets you see whether you are likely to be accepted without affecting your credit score.

If accepted, you can borrow £1,000 to £8,000 and repay over 12 to 60 months, depending on your individual circumstances.

You’ll usually need to share details of your income (which may include certain benefits) and your outgoings. The aim is to help make sure repayments are manageable.

Once approved and set up, funds could be received in as little as 15 minutes. This can vary from 15 minutes to 2 hours depending on your bank.

118 118 money helpers illustration

Ready to check your eligibility?

See whether you’re likely to be accepted before you apply. It won’t affect your credit score.

Check my eligibility
118 118 money helpers illustration

Credit is subject to status, affordability and credit checks. Credit is only available to UK residents aged 18 and over. Terms and conditions apply.