If you earn a lower income, you may feel like you're not included in the financial world. But don't worry, there are ways for you to access loans and other forms of financial assistance even if you don't make a lot of money. In fact, there are loan options available specifically for people who might be turned away by traditional banks.
The options available to you might depend on where you live, as each state has different rules for loans. Additionally, certain government agencies may focus on helping specific areas, which could affect the type of assistance you receive.
Many people may feel they are low income because their money doesn't stretch as far as it should. However, low income has a legal definition that the government sets. It's different from the poverty-income level, which is another definition that qualifies people for other types of government help.
While low-income guidelines are set by the federal government, the actual dollar limits are set by local authorities. That's because all places have their own cost of living and low income is not defined by the exact dollars you bring in but by how much those dollars can buy in an area.
· For instance, one city in Georgia defines low income as:
o A single person making $33,750 or less — those making less than $20,250 are considered in an extremely low-income bracket.
o A couple there can make up to $38,600 and be considered to have lower household income with those falling below $23,250 in the extremely low category.
o A family of four can have a total income of $48,200 and be low income while those families with a total income of $28,900 are put into the extremely low category.
Just as low income is defined differently around the United States, each part of the country has different types of loans and financial assistance available. Here is a look at some of the offerings for low-income individuals and families.
Some states, like California, are offering a new round of stimulus money for those who have suffered the most since the pandemic. Each state has its own qualifying factors to get it. Georgia, for instance, is dividing up its surplus funds for 2022 to anyone who files tax returns for 2021 and 2022.
The income determination for those living in a northern city like New York may be much higher since it costs much more to live there.
There are various federal and state programs aimed at assisting those living in underserved areas to obtain loans or grants for purposes such as home improvements. These programs are targeted at specific areas where the government aims to enhance the properties or support individuals whose income level falls within certain guidelines. Certain loans cater to homeowners or entrepreneurs seeking to establish or expand businesses.
The regions where such assistance is available are sometimes referred to as enterprise zones, and it may be necessary to conduct some research to determine if you are eligible for aid. Local financial aid programs also exist to assist low-income households with expenses like utility payments and rent.
These programs may have different names depending on your location, and your local utility provider can usually provide you with the necessary information or contact details.
During the application process, you will need to bring identification, proof of income, and documentation of rent or utility payments. Due to the limited availability of funds from government or charitable organizations, approval can be challenging and the process can take several weeks due to lengthy waiting lists.
A local credit union may be able to offer a loan to low-income families. They run things slightly differently from a bank and tend to make decisions at the local level.
Most of the time, you do need to be a credit union member to get a loan but most are open to individuals joining them now. In the past, your employer had to be a member for a worker to join.
Credit unions sometimes offer personal loans as low as $500 and also work with people individually to try to get them approved with an unsecured loan or using the money in their bank account as a guarantee. Their repayment plans are usually low also. However, a credit union’s credit score requirements may rule out folks with lower scores.
Vehicle title loans are available in most states although some have outlawed them. This is where a lender allows your vehicle to be put up as collateral for a loan. In most cases, you keep your vehicle but hand over your car’s title for the company to hold while you repay the loan.
The company can seize your vehicle if you fail to pay the loan. Arizona also offers registration loans. A registration loan is for those who don't own the vehicle or have a title in their name but have a vehicle registered in their name where they pay the tag and taxes annually. These loans are lower amounts than a vehicle title loan but are an option.
Those who live in the Midwest or western states may be able to get a farm loan if they are in the agriculture business. The Farm Bureau is the best place to find out about these government loans.
Their staff can tell you what loans you qualify for and help you with the paperwork.
Many states allow for private businesses to be lenders in both secured and unsecured loans. This is highly prevalent in the southern states. These are legal, commercial enterprises that specialize in loans for the community's underserved that have a variety of financial options.
Each has its own eligibility requirements and product offerings. Each state has its own regulations for these types of loans also.
Most states have pawn shops but they are highly prevalent in the more urban areas of the north. This is where you turn over an item as collateral for a loan. You get the item back when you repay the loan.
Otherwise, the shop keeps it and sells it. Many of these shops also buy gold and silver jewelry so you can get some money by getting rid of old jewelry you no longer wear.
Loan apps on your phone or computer are a widely available resource for low-income individuals who need a small loan until the next payday. These apps will loan you anywhere from $5 to $100 until the next payday. They charge a small fee and automatically withdraw the money from your checking account on your next payday.
The one fault of these apps is they only work with certain banks, so if you don't have a checking account at a major bank then you can't use them.
Online loans are incredibly popular for several reasons. Most are available nationwide and all are easy to apply for since all you need is a computer. You can apply from the comfort of your home and will have a decision in minutes.
A solid resource for an online personal loan is Simple Fast Loans. Offering loans in most states from $200 to $3,000, the company will work with you no matter your credit score or income. Simple Fast Loans requires no collateral and has flexible repayment scheduling that you can customize around your pay periods.
Payments are made in equal monthly amounts so you can budget for them and will know what day they will come out. The money is deposited directly into your bank account either the same day or the following business day.
Simple Fast Loan has personal loans that can help pay for many needs such as paying a utility bill, getting a home or car repair done, or buying a new home appliance like a refrigerator. As mentioned above, the company’s online personal loans are available to those with both good and bad credit.
Applying for a personal loan with Simple Fast Loans is easy. There is an online application that you fill out. Once you fill it out, which only takes a few minutes, and submit it, a decision will be given to you in minutes.
Those who are approved will be told how much they qualify for in a loan. They electronically sign the paperwork and money are deposited into their checking account. It's that easy.
An online loan from Simple Fast Loans is a no-hassle way to get money fast for low-income earners. You can apply anytime, get a quick decision, and will have money in your account fast.
You also don't have to worry about when or how to repay the loan because this company has a flexible repayment method that you have some control over according to your paycheck. That takes away a lot of stress.
Filling out the form doesn't put a major mark on your credit score because Simple Fast Loans verifies your identity and your income, which is how the loan is based. You can fill out the online application to see what you qualify for. You don't have to accept the loan if you don't like the amount or terms.
Let Simple Fast Loans help you pay for an expense you're worried about. It's an option anyone across the country can use.