Just because you receive a pension, doesn’t mean you can’t take out a loan.
If you rely on a pension, whether it’s an employer retirement benefit or Social Security, you may find your loan options somewhat limited. That’s because many lenders require you to have a steady job to be eligible.
You do have some options, however. We take you through what those are and show you how to compare these options so you can choose the right loan for you.
Our top pick: LendingClub Personal Loan
- No prepayment penalties
- Flexible loan terms
- Fast and easy application
Our top pick: LendingClub Personal Loan
- Min. Credit Score Required: 640
- Min. Loan Amount: $1,000
- Max. Loan Amount: $40,000
- APR: 6.95% to 35.89%
- Requirements: US citizen or permanent resident, verifiable bank account, steady source of income, ages 18+.
Retired? Click here to see your loan options
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 consider disability benefits a form of income along with employer and Social Security retirement 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 on a pension
The table above can be a good starting point to find a loan for people who rely on a pension as their main source of income. 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.
Can I get an advance on my pension?
Yes, but they’re one of the more expensive options out there. These loans are typically called pension advances, pension sales, pension loans or pension buyouts. Here, you sign over your monthly pension payments in exchange for a loan — often between five and 10 years.
They’re similar to payday loans in that they’re one of the most expensive financing options out there, with APRs easily topping 100%. Some lenders also require borrowers to purchase a life insurance policy naming it as the beneficiary — an extra expense.
The Consumer Financial Protection Bureau (CFPB) warns against borrowing from a pension advance company that claims it’s endorsed by the VA: It’s illegal for lenders to take military pensions and veteran benefits. Former servicemembers are ineligible for a pension advance unless they receive a pension from elsewhere. Either way, it’s an expensive option meant for absolutely emergencies.
Can I get a loan if I am receiving death benefits and have no bank account? I also have bad credit.
Hi Sheena,
Thanks for getting in touch with Finder. I hope all is well with you. :)
While there are stricter requirements for people receiving benefits and having bad credit when it comes to applying for a loan, you would still be able to find lenders who might be able to help you. The bottom line is that as long as you can prove your ability to make repayments, you should be approved.
Since you are on a benefit, you are in a similar situation with people who are on pension. You can go to this page to check lenders who might help you. There’s a table there that allows you to compare lenders by maximum loan amount, term of loan, and costs, to name a few. Once you’re done comparing, you can then click on the “Go to site” green button to be redirected to your chosen lender’s website.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
I am on social security. I draw $781 a month… And I am needin to borrow $600-$700..& I don’t have A bank account. All I have right now is my mastercard directexpress card. Are thy A way I can gett A loan
Hi Dumas,
Thank you for reaching out to finder.
You may need to check the minimum pension requirement first of the lender you wish to apply with. Most lenders are flexible with the other requirements as long as the minimum pension requirement is reached. Please note to check the lender requirements first before filing an application as this may hit your credit score if a lot of applications have been made. Hope this helps!
Cheers,
Reggie
I have no credit history, therefore no credit score. My late husband only believed in using cash. his motto was “ if you can’t pay cash for it, you don’t need it.” So I’m left with no credit history. Was recently accepted for an auto loan in house financing only, because of no credit history. I am on SS death benefits for the next 4 years. I have a direct express debit Mastercard and no bank account and no checking account. I can use my card for anything or anywhere Mastercard is accepted. I can also sign up for payments to be directly taken from my card every month. I just need a small loan to make my car payment this month. September is back to school month and the start of jr high. and costs were tremendous. Can I get a loan with my situation?
Hi Denise,
Thanks for getting in touch with finder. I hope all is well with you. :)
Yes, given your situation, you may still be eligible for a loan. However, you might have a limited option since you mentioned you don’t have a credit score. What you can do is still give traditional lenders a try. Contact lenders directly to discuss your loan options and eligibility.
If in case traditional lenders can’t help you. You might try credit unions. Generally, they provide loans to people who don’t have credit scores. You can know more about credit unions and your options here.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua
Can I take out a loan with only a debit card and if I’m on SSI I live in New Jersey
Hi Carla,
Thank you for reaching out to finder.
Yes, you can still apply for a loan. Receiving SSI does not make you automatically ineligible for a personal loan as lenders who cater to borrowers receiving welfare will look at the borrower’s credit score and if they are able to satisfy their eligibility requirements. However, most lenders will require the borrower to have a checking account. If your debit card is connected to a checking account then the lenders may consider your loan application.
If you are still looking to compare lenders which accept applicants with alternative income, you can go to this page . Click on the name of the lender so you can be directed to the review page where you can see the lender’s eligibility criteria. Also, please note that some lenders listed on the page may not offer service in NJ.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the terms and conditions to know if it best suits your needs.
I hope this helps.
Cheers,
Charisse
I am in dire need of 14500 dollars. I have pensions totalling 390.68. Is there a legit company that would make me a loan?
Hi Merriel,
Thanks for leaving a question on finder.
You can get approved for 14500 pensioner loan as long as you can pass the eligibility criteria. We have a comparison of lenders who can help you in the table above. You will need to choose your state of residence from the dropdown and select your credit score bracket to get personalized result. If you don’t know what your credit score is, you can click HERE. Once you have decided on the suited loan for your needs, you may click on the green ‘Go to site’ button to submit your application or to know more about the loan offer. Hope you find what you need and good luck!
Cheers,
Joel
I am from Romania,I want to know if it is possibile to apply for a loan from out of the country,how can I do ?
Hi Daniel,
Thanks for leaving a question on finder.
Unfortunately, the lenders featured on our website only caters to residents from the US, Australia, UK, Canada and New Zealand. You will have to check with your local lenders if you are not from those 5 countries I mentioned. Sorry about that.
Cheers,
Joel
Can I get a loan that is related by my pension?
Hey Edward,
Thank you for reaching out to us.
You’re on the right page to check out lenders that consider applications from pensioners.
Before applying, please ensure that you meet the income requirements and to read the details, as well as the relevant Product Disclosure Statements/ Terms and Conditions of the option before making a decision and consider whether the product is right for you.
I hope this helps.
Best,
Maria
I want to loan only R500 to buy food where can I get such a loan?
Hi there!
Thank you for contacting finder. We are a comparison website and general information service, we’re more than happy to offer general advice.
You are on the right page. You may also refer to this page for options that may suit your needs. You may review and compare the offers available on the table. Once you have selected one, you may proceed by clicking the green “Go to Site” button.
I hope this helps.
Cheers,
Danielle
Hi i have monthly benefits and living in the Philippines with a FPO addtess and a cellphone number
With bad credit score
How i can get cash loans?
Hi Imelda, Mabuhay!
Thanks for your inquiry.
Actually the page above already provides you with options on loans for people on pension. Now, you have to check the eligibility requirements they have before applying for a loan.
Hope this information helped.
Cheers,
Arnold
Can I get a pension loan off my VA monthly pension?
Hi Peter,
Thank you for your inquiry.
The approval of your application may vary depending on the lender. If you have questions regarding your eligibility, you can contact the lender directly.
I hope this information has helped.
Cheers,
Harold