Why is it that someone who's working and making a fortune in wages is more likely to get more and more credit than someone on benefits who just wants a little extra help? Why are people on benefits penalised for being poor? Is it because creditors will have nothing to take from them if they are unable to make payments? Lets face it, if you don't own your home you've really got no chance. I can understand why some people see crime as the easy way to get money! (Not that that makes it OK, of course).
2006-10-19 01:10:25 · 16 answers · asked by ♥ Divine ♥ 6 in Business & Finance ➔ Credit
I receive Income Support and Carers Allowance and have a very good credit rating. I just think it's wrong that people with the most money can get more money while, generally, people with less will never be allowed to have more.
2006-10-19 01:29:44 · update #1
So, basically, anyone in receipt of benefits is dishonest, is that what some people are suggesting? There are many reasons why people don't work (for example I'm a carer) . Yes some of them are dishonest scroungers who work as well, but then there are many dishonest "rich" people too. Having money doesn't automatically make you a decent person.
2006-10-19 01:36:04 · update #2
Erm, I didn't actually mean that I couldn't get credit, I just meant in general! Also, is it not cheaper to care for a relative at home than to send her INTO a home at the cost of hundreds of pounds a week to the taxpayer when I can do it for about £40, half of which is deducted from Income Support, and much of the money ends up back with the government one way or another, I still have to pay VAT y'know, Benefit claimants don't get anything completely for "free", not really. I've worked, and I've paid taxes too. Everyone pays tax of some kind. That's why we're a rich country. Apparently. And anyone who says "just get a job" should remember that one day they themselves may be out of work and on Benefits.
2006-10-19 02:56:21 · update #3
Everyone who has answered my question should remember that one day you will be on benefits (pension) and many taxpayers will whine about having to pay for your weekly allowance. The tax you pay now does not go towards your pensions and one day YOU will be "scrounging" off other peoples tax! And can I say again, I am not looking for a loan, I just thought it unfair that people on benefits (or indeed people with any low income) will have to fight very hard to get even the most basic credit whereas people with plenty of money can always get more. Thanks to everyone who gave their opinions on this question.
2006-10-20 01:29:02 · update #4
I agree with Dark Horse.
Stop winging and get a job, earn money and get the credit you can re-pay if you still need it. Stop comparing yourself with the working class. Remember, you are on benefits, why should someone trust you that you can ever pay it back. What with? Your benefits?
2006-10-19 01:28:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I am not being cruel but don't you get enough in benefits from the tax that I pay out of the money from my wages that I work for?!!!
I too have not had an easy work life, I was a single parent for 10 years from the time my child was 1 year old but I have always, always worked without fail, anything I could do temporary part time, bar work, anything. I think people that claim benefits should be made to work voluntarily, if they refuse, benefit stopped as simple as that!!!
This country is a joke anyone can claim benfits and its wrong. And it's the working people that pay the benefits out of their tax.
There is always a way around things, if you want extra money to pay for things get a job, where there is a will there is a way.
I am proof of that!!
Good luck anyway!
2006-10-19 09:33:41 · answer #2 · answered by dancingleigh32 2 · 0⤊ 0⤋
Most everyone here has it right. Credit is about the ability to repay the debt. If you are on a fixed income then you cannot absorb the shocks of life as well as someone who can vary their income.
Here is an example. My wife and I just had our third child and my wife is taking some time off of work. She has a small voice studio that does not make a lot anyway, but the loss of income is still a loss of income. Knowing that this was coming, I started to ramp up my production to generate extra money during this time to cover it. Given that, the loss of income is invisible to the bank.
Another layer: We just had to pay $500 to replace our garage door. Since we did not see that one coming, we are carrying a $500 balance on our credit card now. We have to cut expense as best we can to pay for that over the next few months. Here is the important part: *Folks on a fixed income typically also have fixed expenses. They are typically medical or legal cannot be ignored* Given that, the creditor is always going to be near the bottom of the list and they don't like that exposure or they will make you pay dearly for it with very high interest rates.
One last note. If you are really down and need assistance, try Catholic Charities. You don't have to be Catholic and they won't try and make you Catholic. They just want to help.
Good luck to you.
2006-10-19 09:15:46 · answer #3 · answered by Fermat 4 · 0⤊ 0⤋
Because they want to make sure that they will get the money back and if you are on benefits then they dont think of this as a stable income as you could lose the benefits at any time and if you dont have a house that they can take if you dont pay the money back, then they are not guaranteed to get the money back.
You also need to be earning so much a month to get a loan so most people on benefits arent "earning" enough.
This is why people on benefits can get crisis loans.
Get a job then you will be able to borrow what you want.
2006-10-19 08:24:17 · answer #4 · answered by Catwhiskers 5 · 0⤊ 0⤋
The hard fact is that people who are on benefits are more likely to default on any borrowings, and that's why they have to pay a higher interest rate if they can borrow at all. Not everyone on benefits is bad at managing money, of course - but a much higher percentage are than of the working, home-owning classes.
Also, benefits are supposed to be just enough to live on - they don't leave a lot spare to repay any loans.
There are organisations like credit unions which exist to help the less-well off borrow on reasonable terms. You could try applying to one of those.
If you have an urgent short-term need and are in hardship, you could apply for a Social Fund Crisis Loan. And really short-term NEEDS - things like having to have your roof fixed - are the only ones someone on benefits should consider. "Lifestyle credit" so that you can go on holiday or buy a new TV are just a doorway to spiralling debt.
2006-10-19 08:18:12 · answer #5 · answered by gvih2g2 5 · 2⤊ 0⤋
I have come from a family where my dads side, stickin rich but a bit sadistic (mad) and my mums side poor, but loving. So i would and could never judge anyone on benefits, as i was on them before i found my job. But people cannot expect to be borrowed money if they are on beneifits, what are they to pay with, you aint got no money EVER whilst on beneifits, thats why a loan was needed in the first place. If i was a borrower i would never lend anyone on benefits money, i would pay for a college course to help them better themselves so they wont have to ask for credit. Na i mean. If you want things in life, you have to work for them.
Plus, once you start earning money and you work HARD for it, you dont realy want to get anything on credit,you only pay 1/2 the price or more on it. What is the point\??!!!!
2006-10-19 08:31:08 · answer #6 · answered by london lady 5 · 0⤊ 0⤋
Credit is all about ability to pay. The more money you have the more disposable income you will have which makes you more likely to be able to pay. The less you have the less likely you are.
Best advice is to get a job and get off benefits if your circumstances allow you to do so.
Simple as that.
2006-10-19 08:13:23 · answer #7 · answered by Martin G 4 · 3⤊ 0⤋
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2014-08-22 16:00:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Honey, it's probably because there is a certain amount of income they need you to make to be sure you are not as much of a credit risk, and on benefits, you likely do not have that minimum amount of income.
Please don't turn to crime. Even if things are slow, and you turn out to always be more qualified for other jobs than the ones someone hires you for, you will at least know you did not commit crimes.
2006-10-19 08:13:01 · answer #9 · answered by *babydoll* 6 · 2⤊ 0⤋
It's because they need to know you are going to be able to pay your money back. Millions of people a year are getting firther and further in debt. No wonder this country is in the mess its in. Are you on benefits out of choice? I don't see why people who come out of school with no qualifications and don't bother to look for a job going straight on to benefits should be allowed credit. So many people are going against the system then there are honest hard workes like myself who aren't allowed to sign on if they lose their job!!
Why should the government be handing out more money to people on benefits if there is no chance of them getting it back.
It's based on the money you earn!!!
Sorry to be blunt
2006-10-19 08:20:43 · answer #10 · answered by ? 2 · 0⤊ 0⤋