Personal loan approvals for people relying on disability benefits hinge on the regular government check rather than proof of employment. Lenders love the reliability baked into these publicly-funded programs!
Second, many disabled people have bad credit because their income barely covers basic living expenses, yet another reason to keep your request small.
Finally, SSI recipients have a resource limit of $2,000, so you do not want to over-borrow and risk your eligibility.
Personal Loans for SSDI Recipients
Personal loans for people on Social Security Disability Insurance (SSDI) benefits enable recipients to borrow money against future checks without jeopardizing their eligibility.
Social Security Disability Insurance (SSDI) covers workers that funded the system via FICA taxes payroll deducted by employers. Therefore, they do not have resource limits and can borrow more significant sums.
- Personal Loans for SSDI Recipients
- Fast Response
- No Credit Check
- Based on Income
- No History
- Payday Loans
- Personal Loans for SSI Recipients
- Cash Advance
- Without Bank Account
You are in control of how quickly the process goes. Give the subprime lenders the information they need to make a fast decision by responding promptly.
Remember that finance companies love the certainty of government-issued Social Security disability checks. The SSDI money keeps coming despite recessions, depressions, pandemics, earthquakes, hurricanes, and other acts of God.
No Credit Check
SSDI recipients with extremely low (or non-existent) FICO scores can sometimes get a disability loan without a credit check. There are three possible avenues where sub-prime lenders might approve a request without pulling a copy of your consumer report.
Based on Income
Personal loans based on income only do not require a credit check because the subprime lender agrees to ignore adverse payment history. Approval is possible because government benefit checks are incredibly reliable. However, you need to keep the requested amount extremely small.
Young adults with no credit history can sometimes get a disability loan without a credit check. Subprime lenders often use alternative bureaus not named Equifax, Experian, or TransUnion. These second-tier bureaus collect non-traditional data such as utility bills, apartment rental history, and other financial information sources that prove useful for beginners.
Payday loans frequently do not require a credit check. Disability recipients can get a cash advance by pledging their next SSDI benefit as collateral. You give the lender the legal right to auto-debit your bank account, and in exchange, they approve your request without pulling your consumer report.
Personal Loans for SSI Recipients
Personal loans for Supplemental Security Income (SSI) recipients need to be very small to avoid triggering the countable resource limitations.
Supplemental Security Income (SSI) addresses the needs of adults and children who have limited earnings and resources. Because many recipients never paid FICA taxes, you cannot have more than $2,000 in the bank at any time without risking eligibility.
Therefore, make sure to spend all proceeds right away! Lousy credit history will only get worse if your government benefits stop arriving.
Payday loans work like a cash advance against your next SSI payment. In other words, you get your money sooner. Perhaps it arrives in 24 to 48 hours instead of up to 30 days later.
However, cash advances are an expensive and dangerous way to borrow money if you rollover the balance too often. A rollover means you fail to repay the entire balance immediately after your next scheduled SSI check.
For example, say you take out a $200 cash advance and pay an origination fee of $30 (15% of the original principal). The lender gives you $170, and you owe $200 back when your SSI check arrives no more than thirty days later.
Without Bank Account
SSI recipients can take out a payday loan (cash advance) without a bank account by using their Direct Express debit card. The application process is nearly identical, except that you must provide the card number and PIN rather than a routing and account number.
If approved, the lender will transfer funds quickly to your debit card, which you can use to address your emergency need without a banking account.
Of course, you must pay the entire balance shortly after receiving your next SSI payment to avoid rollover fees and the debt snowball, which could ensue.
Frequently Asked Questions
Scan this list of frequently asked questions to understand better personal loans for people on Social Security Disability and Supplemental Security Income benefits.
Are There Special Loans for the Disabled?
No – there are not special personal loans for the disabled. However, people receiving government benefits can borrow small sums from sub-prime lenders and pay it back out of future disability checks.
What’s the Best Loan for People on SSI?
The best loan for people on SSI has affordable payments and does not jeopardize eligibility by putting them over the $2,000 resource limit.
How can I get a Loan with Bad Credit and Disability?
You can get a personal loan even if you have terrible credit and rely on disability benefits for support. The key is to work through sub-prime lenders, keep the amount small, and have your driver’s license and checkbook handy.