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While claiming benefits does not affect your credit rating it could reduce your chances of being accepted for a loan or credit card. That's because if you are claiming benefits it is likely you have a low income. That could mean you fail to meet the minimum income requirements needed for most credit cards or loans.
Your application will be sent to a DWP Universal Credit Service Centre for processing and the DWP will then send you a Universal Credit decision letter.
Universal Credit is a monthly payment to help with your living costs. You may be able to get it if you're on a low income or out of work. Find out if you're eligible for Universal Credit. This guide is also available in Welsh (Cymraeg).
To claim Universal Credit you'll ideally need to provide ID, for example an in-date passport, driving licence or European Economic Area national identity card and evidence of your address.
It is available to those with low incomes or who are out of work and provides an amount of money to help pay for living costs such as rent or childcare. The Universal Credit payment is made up of one sum of money. You may get an additional top-up, depending on how much help you need and what your circumstances are.
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If you don't have a bank account You'll need to get your own bank account before your second payment. When you have a bank account, you can update your bank details in your online Universal Credit account. If you can't use someone else's account, you'll need to open one before you can claim Universal Credit.
These letters show you how much Housing Benefit you have been awarded and how we have worked out your award for each benefit period. These award(s) will be based on the details you have given us.
The overall effect has been to plunge people already on low incomes into rent arrears and debt and in some cases homelessness. In others cases, it has caused job losses - the very opposite of what Universal Credit is intended to achieve.
Completing an online claim takes about 20 minutes for a single person.
Technically there's no minimum income requirement to get a credit card. A student's disposable income could be as low as $100 and they would still have the potential to be approved for a credit card. Higher incomes generally give applicants a better chance of getting approved for a card and a higher credit limit.

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