What is Universal Credit and can this be used as an income when looking to get car finance? Universal Credit is a single monthly payment to support people in or out of work, which combines together some of the benefits and tax credits that you might be getting now. Universal Credit will replace: Income-based Jobseeker’s Allowance, Income-related Employment and Support Allowance.
It will replace six existing benefits and is currently being rolled out across the UK. The new system is based on a single monthly payment, transferred directly into a bank account.
Universal Credit will replace:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Child Tax Credit
- Working Tax Credit
- Housing Benefit
There’s no limit to the number of hours you can work a week if you get Universal Credit, but your payment will reduce gradually as you earn more. You won’t lose all your benefits at once if you’re on a low income.
Universal Credit is paid differently from other benefits. It’ll be paid once a month, usually into your bank, building society or credit union account.
If you live with your partner and you both claim Universal Credit, you’ll receive a single payment that covers you both.
What you need to know about Universal Credit
Universal Credit is paid in the following ways:
- It will be paid monthly into a bank account of your choice.
- If you get help with your rent, this will be included in your monthly payment – you’ll then pay your landlord directly.
- If you live with your partner and you are both eligible, you will get one monthly joint payment.
- It can take several weeks after you make your claim to get your first payment.
Are you newly unemployed?
Universal Credit is being introduced in phases. At the moment, Universal Credit mainly affects newly unemployed people in specific areas of the country.
If you’ve recently become unemployed you might be asked to claim Universal Credit rather than Jobseeker’s Allowance. In England, Scotland and Wales, Universal Credit is now available to single jobseekers in all Job centres. In some areas it is also available to couples and families too.
Can I get car finance using universal credit as an income?
As bad credit car finance experts we take benefits into consideration when reviewing your income. We will ask you to provide breakdown of your Universal Credit benefits and we will take this into consideration apart from housing benefits which we exclude as income.
All circumstances are considered – Benefits, CCJs, defaults, arrears, self-employed – Whatever your circumstances we could help you. You can choose from a wide selection of quality used cars from our list of approved dealers throughout the UK.
If you would like to speak to one of our agents please call us on 01925 696 373 or alternatively make an car finance application online and one of our agents will give you a call back.