What are personal loans for single parents?
Personal loans for single parents are loans suitable for households that only have one parent and one income.
Having just one income to rely on can make it harder to make ends meet, but it also makes it harder to get finance such as a personal loan.
That said, all is not lost. There are plenty of lenders willing to lend to single parent households, provided you can show proof of a steady income and a good track record of having paid previous debts.
Who offers personal loans for single parents?
There are a range of lenders that offer personal loans for single parents, but eligibility always depends on your personal circumstances, and the criteria of each individual lender.
The problem is, the lender's criteria isn't always obvious and applying to multiple different lenders for a personal loan can have a negative impact on your credit score.
RateCity's chance of approval system, however, can tell you the likelihood you'll get approved for a loan before you apply, which means no more black marks on your credit file just because you didn't understand the lender's eligibilty criteria
To find out your chance of getting approved for a personal loan, visit RateCity's personal loan marketplace:
Can single parents with bad credit get personal loans?
It’s possible for single parents with bad credit to get a personal loan, but it may be challenging. Many reputable personal loan lenders require a certain credit score or proof of financial health before approving loans, so if you don't have steady employment or you have a bad credit history, talk to your preferred lender about whether you are eligible to apply for a personal loan.
How do you compare personal loans for single parents?
To compare personal loans for single parents, use a comparison site like RateCity.com.au that shows you all the different products side-by-side. In your assessment you should consider the interest rate, fees, and repayment flexibility. Ensure you can afford to make the repayments on time, and make sure you fully understand the consequences of late payments and defaults.
How can you improve your chances of being approved for a single parent loan?
To improve your changes of being approved for a single parent loan, make sure you know your credit score. A higher score will more likely result in approval. You can also consider borrowing a lower amount to ensure you can make the repayments on time.
How do you take out a personal loan for single parents?
Most lenders have a straightforward online application process. After completing and submitting an online form, the lender will review and make a decision about your eligibility.
How long does it take to get a personal loan for single parents?
The length of time it takes to receive your loan will depend on the lender. The timeframe can range from within a day to several days, so talk with your lender if you need the funds fast.
What are the pros and cons of personal loans for single parents?
Pros:
- Get access to funds to help you cover expenses and pay bills.
- Having a set repayment schedule that helps you pay off your debt in full, within a set timeframe.
Cons:
- Paying interest charges and fees on your loan.
- Saving enough money each month to make your repayments.
- Risk of defaulting on the loan.
Can single parents on Centrelink get personal loans?
Yes, single parents on Centrelink can get personal loans, under certain conditions. Some lenders enforce restrictions on loans for single mothers on Centrelink, such as requiring an additional primary source of income.
What are the alternatives to personal loans for single parents?
If you’re thinking about taking out hardship loans for single mothers or fathers, it’s best to consider your alternatives. If you’re on low income, you may be eligible for low or no interest loans. This may help you cover household costs without high interest. You could also consider taking out a low-interest credit card, but be sure you don’t spend over what you can pay back.
CASE STUDY: Sandy compares and saves
Sandy wants to take out a personal loan to cover some of her daughter’s education bill. She has considered her income and financial status and wants to find the lowest interest rate possible. She finds a personal loan for single parents with an interest rate of 12 per cent, and considers applying. Sandy decides to do a bit more research, and thirty minutes later, finds a loan with an interest rate of 10 per cent, saving herself hundreds of dollars.
