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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.
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
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What other types of loans are available for people on disability?
With SSI benefits capped at $783 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.
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:
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.
Bottom line
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.
Frequently asked questions
Ask an Expert
Is this in Canada
Hi Regina,
Thanks for reaching out. The page you’re viewing is for US customers. As of this writing, our pages don’t have a list of disability loans in Canada. If you are seeking for other loans in Canada, you can refer to this page.
Hope this helps! For any clarifications, feel free to message us again.
Best,
Nikki