Just because you receive a pension, doesn’t mean you can’t take out a loan.
If you receive a form of pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. Some lenders have stricter criteria for those receiving pension.
It’s important to know that there are loan options out there. It’s even more important to know how to compare these options so you can choose the right loan for you. Read on to see what’s available, compare your options and find out how to apply.
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What types of pensions are considered by lenders?
Pensions in the US are offered by some employers and also by the government to senior citizens and those with disabilities.
- Employer retirement benefit. Some employers offer pensions as a retirement benefit to employees. The amount you’ll receive in retirement is calculated by a formula determined by your employer. Although many employers now offer 401(k)/403(b) retirement plans, some still offer retirement benefits in the form of a pension.
- Social Security. Social Security provides retirement income to people of a certain age after they retire from their careers. Social Security also provides disability income to people with certain disabilities who are unable to work.
There are lenders who will look at these benefits as a form of income and consider the pension payments when evaluating your ability to repay the loan.
Personal loans you may be able to apply for while on pension
How to apply for a loan when you receive pension
The table above will give you a good starting point to find a loan when you receive pension. You can click on the name of the lender to read a review, and you can click “Go to Site” to submit your application. If you have questions regarding your eligibility, you can contact the lender directly.
Personal loan applications are counted as inquiries on your credit report. Inquiries play a factor in your overall credit score. Lenders may also view too many inquiries as a red flag. To keep your credit in good standing and improve your chances of approval, you may want to consider limiting your number of loan applications.
To apply, you’ll need to provide personal information including your name and contact details, as well as financial information regarding your pension payments, assets, debts and open credit accounts.