28 January 2026
Can You Get a Loan on Universal Credit?
If you’re receiving Universal Credit, borrowing money can feel complicated or even impossible. Many people are told “no” by high-street banks or are pushed towards high-cost lenders, which can make an already difficult situation worse.
The good news is that there are safer, fairer options. At Boom Community Bank, we believe access to ethical finance shouldn’t disappear just because you’re on a low income or receiving benefits.
Is it possible to get a loan on Universal Credit?
Yes - it can be possible to get a loan on Universal Credit, but it depends on the lender and how they assess affordability.
Mainstream lenders often rely heavily on credit scores and automated systems. This can disadvantage people whose income isn’t traditional or who’ve experienced financial disruption.
Ethical and community lenders, like credit unions, take a more personal approach - looking at your overall circumstances, not just your credit history.
Why high-cost lenders aren’t the answer
When people search for a loan on Universal Credit, they’re often met with payday lenders or high-interest credit. These loans may be easy to access, but they can lead to:
Very high interest rates
Short repayment periods
Increased financial pressure
A cycle of repeat borrowing
For anyone managing on Universal Credit, this can quickly become unmanageable.
How Boom Community Bank does things differently
Boom Community Bank is a member-owned, not-for-profit credit union. That means our focus is on supporting people - not maximising profit.
When considering a loan application from someone on Universal Credit, we look at:
Your full income and essential outgoings
Whether repayments would be affordable
Your individual situation, not just a credit score
We aim to lend responsibly, so that repayments fit within your budget and don’t cause further stress.
What types of loans might be available?
Depending on your circumstances, a loan on Universal Credit may be used for things like:
Essential household items
Unexpected costs
Helping smooth finances during a difficult period
Loans are not a solution for every situation, and we’ll always be honest if borrowing isn’t the right option.
Other support worth knowing about
If you’re on Universal Credit, you may also want to explore:
A fairer approach to borrowing
If you’re exploring whether a loan on Universal Credit could work for you, our website explains who we can support, how our loans work, and what to expect from the process.
👉 Find out more about our loans.
