Being a single mum can come with its own set of battles with financial responsibility being among the biggest one. We all know money doesn’t grow on trees and working around children can be hard so understandably, falling into debt or having other things take place may severely affect you. What makes it even harder is that you’re doing this on a single salary.
That is where a personal loan can come in and help you out in the simplest way possible. However, there is still a multitude of things that you must consider when it comes to taking out a personal loan and you must also consider how it will work for you and your specific circumstances. You have to make sure that you are able to pay it back so that you don’t create debt for yourself which is definitely something that you don’t want.
Balancing all of the finances of your family as a single mom can almost seem absolutely impossible at times and cause a lot of stress and hardship for your family. Rent, food, bills, and other expenses in life may have you feeling like you’re always behind, especially when they are all piling in the door and pushing past one another at the exact same time. You may be considering a personal loan; however, you may also have bad credit which could destroy your chances.
Personal Money Store is a great resource for figuring out your finances and looking at different loans when you have bad credit. Another thing that may be setting you behind is the fact that it is fairly hard to become eligible for loans on a single income. However, there are definitely ways around this. In this article, you will be able to find out if personal loans are possible for single mums.
About personal loans
When it comes to the question of ‘can single mums apply for and be approved for personal loans’, the answer is essentially yes. It is good to keep in mind that it will be a little harder to pay off on a single income without sliding into debt, but it is definitely doable. The lender will need to know that you have enough money to pay off the loan without it causing financial hardship or stress for you.
Things that may also halt the process is your savings, the amount you are applying for, your credit score, and why you need the loan.
What can personal loans be used for?
Single mums can use their loan for pretty much anything, as long as you are approved, the money is then yours. Here are some things that you can get a personal loan for:
- Debt consolidation
- Furniture purchases
- Purchasing a car
- Coverage for medical expenses
Obviously, there are many things you can get personal loans for; however, these are among the most popular. You should also be aware that the amount you will have access to will be heavily determined by your loan criteria and credit score which will vary largely between lenders.
Can anything prevent me from getting a personal loan?
When it comes to personal loans, you cannot just apply and expect to be approved, unfortunately, personal finance doesn’t work like that. Meeting the lending criteria for your loan will make the application process much faster as well as having a good credit score. The process is no different between people, even if you’re a single mum, it all comes down to your credit score and the criteria.
To help, we have compiled a list so that you can see some things that may prevent you from getting approved for your personal loan. Here they are.
- Unpaid debt- One of the first things lenders will assess is your ability to pay off your loan effectively within the given timeframe. Having unpaid debt can significantly decrease your chances of receiving your personal loan as they will need the loan paid off. Having little to no unpaid debt is the right way to go if you would like to qualify and be approved for a personal loan.
- Too many debts- Apart from unpaid debts, the next worst thing is a plethora of debt. Too much debt to be paid will look bad, especially when you are relying on a single salary to get you by. You will likely be put to the side when it comes to a loan if you have lots of debt and only a single income to maintain your household.
- Working part-time- Working part-time as a single parent will usually turn lenders away as it may seem like you don’t have a reliable source of income. If your income is supplemented with government benefits, you may even have less of a chance at qualifying.
How to apply for a loan as a single mum
When you are applying for a personal loan as a single mum, here are a few things you should be ready to get ready.
- Credit score check- Checking your credit score straight up is a great way to first understand what your chance of getting approved is. If you have a good understanding of your credit score, you will be more likely to understand your loan criteria.
- Compare- Make sure that you don’t settle for the first personal loan that is thrust in your face. Doing your shopping and finding a few different options is a great way to determine the best one.
- Make sure you fit the criteria-There are several requirements you need to meet to be able to be approved for a personal loan. Making sure that you fit the given criteria is always a good idea and an essential step in the process.
- Prepare the required documents- When you apply for a personal loan, you will need a fair bit of documentation so having it prepared is always a good idea, so it saves time later. You will need them at some point, so having them prepared ahead of time is the best thing to do.