What You Need To Know About Low-Income Loans
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Many people think that if an individual does not have a valuable asset (like a vehicle) or proof of sufficient income, it will be impossible for them to obtain a loan.
But if that's the case, what options are people with low income left with?
The good news is that you'll still be able to qualify for a loan, even if your annual salary is not mind-blowingly huge. All you would have to do is look for lenders who either have no minimum income requirement or require an attainable annual income.
Types of Low-Income Loans
Simple Fast Loans offers installment loans suitable for low-income customers.
Installment loans are any loan repaid by the borrower in equal increments, in most cases, once a month. When securing an installment loan, you do not need to provide collateral. For example, you don't have to own a vehicle or a house to qualify.
If you ever find yourself in a low-income situation, you might manage to buy yourself all the necessary basics. But if an emergency happens, low-income individuals can rarely cover it with their own funds. For example, unexpected medical bills and repairs; some people might find it impossible to pay for these things without borrowing money.
How Do Low-Income Loans Work?
- To determine whether or not you qualify for a low-income loan, the lender will consider your credit score. Unfortunately, this can become a problem for some customers, especially low-income individuals. But the good news is that Simple Fast Loans welcomes customers with different credit (even less-than-perfect ones). Bad credit will not necessarily prevent a customer from qualifying, so it's worth a shot.
- Lenders also consider DTI (debt-to-income ratio). In a nutshell, this ratio is the percentage of your salary repaying the loan monthly. Again, the representatives at Simple Fast Loans will do their best to find a convenient option that will fit your needs. DTI should not be too big – this would mean that you would have to put a massive bulk of your income towards repaying the loan (and this would certainly affect your quality of life). But on the other hand, the right DTI helps ensure you can manage your debt, which is the main reason lenders pay attention to this percentage. You can calculate the debt-to-income ratio on your own, by the way. You must divide the monthly payments by your income and then multiply the result by 100.
- Lenders will verify your income. However, remember that government benefits, alimony, and child support can also be included. The amount you qualify for will depend on your income and, consequently, your ability to repay. With Simple Fast Loans, you can qualify for $200-$3,000 (actual amounts may vary by state).
- Online low-income loans are fully verified online. This means you wouldn't have to visit the store or even contact a representative via phone. Instead, your income, identity, and bank account information will all be electronically verified.
By the way, the not-so-obvious benefit of how low-income loans work is that both types can help you build your credit score. That is if you make the monthly payments on time, of course.
How Is a "Low-Income" Defined?
If your family's income does not exceed 150% of the poverty level, you have a lower-than-average income.
The amount you need to earn per year depends on your state and the size of your family unit.
In 2022, families of two, for example, are considered to be "low-income individuals" if their taxable income is less than $31,590 (for those living in Hawaii), $34,335 (for those living in Alaska), and $27,465 (for all the other states).
You might find yourself in a low-income situation if one of your family members loses a job, you have been bumped down to part-time work, or you are a freelancer, and you're low on job offers.
It doesn't matter why you're facing these difficulties. Your life is already full of challenges, so receiving a loan should not become another problem on your list. Thankfully, lenders are there to help you through this complicated period and are willing to treat you with the respect you deserve.
At Simple Fast Loans, we are a fully licensed company that offers online loans and works with all income types. Customer service and satisfaction are the company's top priorities. As a result, the whole application and approval process has been simplified to ensure you get the money you need as soon as possible.
How To Apply for a Low-Income Loan
Applying for a loan with us is extremely simple. You can easily do it from the comfort of your own home.
- Fill out the short form online. Then, if you have any questions about how it's done, you can contact the company representative, who would be happy to assist you.
- A lender will set up the loan agreement and send you an online loan package directly to the company's website or your email.
- Just follow the simple instructions on the screen. The e-sign process would require you to click a few spots where a signature is required on the agreement.
- Once you have signed all the documents, you will see a page with green text that says the loan has been funded. Contact a loan representative if you didn't get to this page, as the loan is incomplete without it.
- You will also get a text right after receiving the signed agreement. And you will receive another text once the loan is funded.
All the information you provide during the process will remain confidential and secure. For example, if you would have to provide your banking credentials to release a statement and verify that the banking information belongs to you, all the data would be provided directly to the bank verification service.
What Do You Need to Apply?
The actual application process is relatively straightforward. But to ensure everything goes smoothly, you must prepare all the necessary documents beforehand.
Those include:
- A government-issued photo identification (this can be a passport, driver's license, or state ID).
- An active bank account, its number, and the routing number. Make sure to mention the bank account where the most significant part of your income gets deposited.
- A valid phone number (so that representatives can contact you directly if necessary).
- Your valid SSN (Social Security number).
When applying online, you must provide the information from these documents. If you have all of them in one place, filling out the forms will take a few minutes.
You should also remember that you must be at least 18 years of age to apply for any loan. Regular or reserve members of the military cannot apply as well.
When Will You Receive Your Low-Income Loan?
At Simple Fast Loans, all of the loans are processed online. This means you wouldn't have to spend time getting to the store and waiting in line there.
Once you complete the application, you will receive a loan decision in minutes. But when exactly will you get the money, in case you qualify?
When applying for a loan at a bank, you might have to wait for a few weeks until you can get your hands on the much-needed cash. Fortunately, that is not the case with Simple Fast Loans.
Once you get the loan approval, you can expect to get the money the next bank day or even the same day!
Bear in mind that bank days do not always coincide with business days. But, generally, a bank day is any day other than a public holiday, Saturday, or Sunday.
If you want to get the loan money as soon as possible, fill out the application form in the morning. Loans signed before 2 PM on a bank day will, most likely, be funded on the same day. The date when the funds will be available for you will depend on your bank.
Hint: you can check the eligibility of your Visa or Mastercard to get instant funding. To do that, contact Simple Fast Loans after applying online.
Final Thoughts
Getting a low-income loan is not only possible but can be extremely easy. If you choose Simple Fast Loans, you may receive the required funds on the same day you apply.
Low-income loans can help you encounter unexpected payments and need relief from your financial burden. So, if you ever find yourself in such a situation, applying for a loan might be a way to deal with the problem successfully.
The good news is that you'll still be able to qualify for a loan, even if your annual salary is not large.
