If you meet the qualifying conditions and have sufficient income to qualify for the desired loan amount, you can obtain a personal loan while receiving disability benefits. For instance, regardless of your source of income, you may be able to be eligible for a loan if you have excellent credit and a lengthy history of making your bill payments on time. The positive aspect of trying for a loan on impairment is that you ought to have consistent records that demonstrate the amount and frequency of your disability benefits. Continue reading to find out how to apply for and be accepted for a loan while receiving disability benefits, as well as other options to think about and how taking a loan may affect your benefits.
Your Benefits Will Remain Unaffected
You can still obtain a personal loan even if your credit isn’t the best, even though some lenders prefer to work with borrowers who have strong or exceptional credit. These loans typically have more restrictive terms or lesser loan amounts, higher interest rates, and additional loan fees including origination fees. Additionally, you can apply for certain personal loans without having your credit checked. You must apply for financing just like everyone else to receive a loan on disability. To begin, gather information and supporting documentation such as your driver’s license of identity, utility bills to establish where you live, your SSN (Social Security Number), and recent pay stubs and W-2s.
The loan application will next need to be filled out with details such as your full name, phone number, address, gross monthly income & mortgage payment, or monthly rent. As per the U.S. SSA (Social Security Administration), your disability benefits will remain unaffected by your loan application. The loan proceeds won’t be considered income if you borrow money & use it inside that month; this won’t have an impact on your SSI. Nevertheless, the money from the loan will be deducted from your resource cap ($2,000 for one person, $3,000 for a pair) if you don’t use it all.
Beyond Personal Loans
There are options outside personal loans to think about if you are disabled and you require access to money. Here are several possibilities:
Loans from friends and family: If you have some money to repay them, friends and family might be an excellent, short-term source of funding. However, to avoid ruining the friendship, you should be cautious when borrowing money from individuals you know while taking payback seriously.
Credit Cards: When you’re strapped for cash, credit cards might help cover some of your costs, but keep in mind that they typically have high-interest rates. Think of 0% APR credit cards if you wish to utilize a credit card having no interest for a brief period. To ensure that the 0% introductory term is extended, make sure that you’ve got a plan in place to repay the remaining amount.
Savings: Having savings on hand might help you get by financially during times of hardship, but if you start making more money, you’ll want to ensure you add to them.