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Compare loans for people on disability
On a limited income? You still have options when you need extra cash.
Loans for people on disability — often called SSI loans — are available even if you have a limited income or less-than-stellar credit. While short-term loans are the easiest to qualify for, you may be able to find more competitive offers from federal credit unions or even the federal government.
- Easy online application
- Quick approval
- Fast funding
- Long repayment terms
OppLoans Installment Loans
Installment loans with competitive rates from a top-rated direct lender.
- Minimum loan amount: $500
- Maximum loan amount: $5,000
- Turnaround time: 1 business day
- Loan term: 9 to 36 months
- Must have direct deposit and meet minimum income requirements
Can I get a loan on disability if I have bad credit?
Yes, there are loans available for people who receive disability or SSI payments and have bad credit. Short-term lenders that offer payday, installment and auto title loans often accept poor-credit borrowers with limited income. You can generally borrow between $100 and $1,000 with a payday loan, and installment and auto title loans tend to come in even higher amounts. Terms range from a few weeks to over a year.
Just watch out: Short-term loans are expensive and not available in every state. Interest rates tend to be much higher than credit cards and other types of financing. Because of this, many financial experts advise against short-term borrowing when you’re on a fixed income.
Compare short-term loans available to people who receive SSI
What other types of loans are available for people on disability?
With SSI benefits capped at $771 per month for individuals, you might think short-term loans are your only option. But there are other types of financing you can consider first:
- Social Security Disability loans. You may be able to receive a loan through SSI’s presumptive disability program. The loan amount is up to one month’s benefits, but you must be under extreme hardship — such as having no shelter or food — to qualify. To learn more, speak with your case worker.
- Payday alternative loans. Some federal credit unions offer payday alternative loans (PALs) up to $1,000 with APRs capped at 28%. You must be a member of the credit union for at least a month to qualify, however.
- Personal loans. If you have other forms of income, like a pension or child support, you might qualify for a personal loan. Otherwise, consider applying with a cosigner. Credit unions and online lenders typically have less-strict income and credit requirements than larger banks.
- Home equity loans. Are you a homeowner? You may be able to borrow against your home’s equity through a home equity loan or line of credit. This is a secured loan — meaning you use your house as collateral — but it often comes with more lax eligibility criteria than an unsecured personal loan.
- Credit card cash advances. This may be an option if you already have a credit card and haven’t borrowed up to your credit limit. Credit card cash advances have lower rates than payday loans, with APRs usually around 30% — not including additional fees.
- Short-term loan alternatives. If you have bad credit or can’t qualify for a personal loan because of your limited income through SSI, you may want to consider a short-term loan alternative. Our guide includes a list of state resources.
With any of these loans, check to make sure you’re eligible before applying. Browse GovLoans.gov to find more financing options that can help.
Is a loan considered income for my SSI or disability payments?
No, loans aren’t considered income and usually don’t count against your disability or SSI payments. However, there are two exceptions:
- If it’s a gift. If you’re given money you don’t have to repay, Social Security considers it a gift and counts it as an asset. This could put you over the SSI resource limit for individuals and make you ineligible for benefits that month.
- If you don’t spend it right away. If you take out a loan, you need to spend it within the month you receive the funds. Anything left over will count toward your SSI resource limit, which means you may become ineligible for benefits.
In these cases, make sure you aren’t going over your $2,000 individual SSI resource limit. Only borrow as much as you need to avoid taking on too much debt or having too much in the bank when your resources are counted for the month.
What does the Social Security Administration consider a loan?
A loan is any cash, food or shelter items you agree to pay back. As long as the agreement is enforceable by state law, it counts as a loan. This means it doesn’t count as income — unlike a gift you don’t have to repay — and doesn’t reduce your SSI benefits.
Alternative options for extra funds
You aren’t limited to borrowing when you’re on disability or receive SSI and need extra funds. Grants are another option to consider — and the best part is you don’t have to repay them. Here are a few resources to get you started:
- Grants.gov. Search for grants by category and eligibility type, plus find resources to learn more about how they work and ways to increase your chances of approval.
- Health and Human Services (HHS) grants. While these grants are given to community organizations rather than individuals, this is a good place to find local HHS-funded programs that could help you.
- Administration for Children and Families (ACF) grants. The ACF awards grants to improve the economic well being of individuals and families. While it doesn’t provide funding specifically to individuals, it’s another great resource to find assistance programs in your area.
- FinAid. Find a list of scholarships and grant opportunities for students with disabilities who need help paying for college.
Despite your limited income, there are still loan options available when you’re on disability. Just spend any funds the month you receive them so you don’t go over your SSI resource limit.
If you only need to borrow a small amount, browse our guide to short-term loans to compare lenders.
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