Is Social Security Enough Income to Get a Personal Loan?

Borrowing money doesn't needfully extremity erstwhile you deed status age. Even if you're collecting Social Security benefits and person different sources of income, you could look a awesome disbursal that exceeds your disposable funds. If that's nan case, you whitethorn want to look into taking retired a personal loan. Here is what you request to know.

How Social Security Benefits Work

Social Security benefits are administered by nan U.S. Social Security Administration. They travel successful respective different forms, each pinch their ain qualification requirements. They include:

• Retirement benefits
• Survivors benefits
• Supplemental Security Income (SSI)
• Social Security Disability Insurance (SSDI)

How to Get a Personal Loan connected Social Security

When you use for a individual loan, prospective lenders will want to make judge that you'll beryllium capable to repay them erstwhile nan clip comes. The sources of your income aren't needfully an issue, truthful agelong arsenic you tin beryllium you'll person capable money coming successful to support up pinch nan payments connected your loan.

In filling retired a individual indebtedness application, you'll want to see each of your income sources, whether that's done a occupation wherever you get a regular paycheck, alimony, kid support, finance dividends, status income from Social Security aliases a pension, aliases thing else. How overmuch you bring successful each period tin not only impact whether you tin get a indebtedness but besides really overmuch money nan financial institution will beryllium consenting to lend you.

Getting a individual loan won't effect your Social Security status benefits. However, if you're receiving SSI, it whitethorn impact that. That's because SSI has assets limits, and if you don't walk nan costs you get successful a fixed month, that magnitude will count toward your assets limit for nan pursuing month. In that situation, it makes consciousness to get only arsenic overmuch arsenic you scheme connected utilizing correct away.

The existent assets limits for SSI recipients are $2,000 for individuals and $3,000 for couples, pinch definite assets, specified arsenic a location and 1 vehicle, being exempt.

Alternatives to Personal Loans

If you can't suffice for a individual loan, aliases simply don't want one, location are different options for borrowing money. These include:

Credit Cards aliases Credit Card Cash Advances

If you tin screen your expenses pinch a in installments paper you already possess, you won't person to complete a indebtedness exertion aliases adhd a caller measure to your budget. Using a in installments paper could make consciousness if tin salary disconnected your equilibrium nan adjacent period aliases wrong a fewer months. If you tally a equilibrium for an extended period, however, it tin get expensive.

If you request cash, you could besides see a credit paper rate advance. Cash advances transportation a different—and typically higher—annual percent complaint (APR) from normal purchases and usually impact immoderate other fees. So they tin beryllium a very costly measurement to borrow.

Home equity loans aliases location equity lines of in installments (HELOCs)

If you ain your home, you tin get against nan equity you person successful it done a home equity indebtedness aliases location equity statement of in installments (HELOC). With nan former, you typically person a lump sum of money that you past salary backmost successful regular installments. With nan latter, nan lender provides you pinch a statement of in installments you tin get from arsenic needed.

Interest rates thin to beryllium little pinch location equity products compared to individual loans. However, some location equity loans and HELOCs usage your location arsenic collateral, truthful if you can't salary nan money back, you consequence losing it.

Friends and Family Loans

If you're comfortable doing so, you tin besides inquire adjacent friends and family members if they tin lend you nan money you need. But make judge you activity retired a costs scheme and instrumentality to it to debar immoderate sick feelings. You whitethorn besides want to put everything successful writing, conscionable successful case.

The Bottom Line

Social Security benefits are 1 root of income that tin thief you suffice for a individual indebtedness if you request one. The proceeds from specified a indebtedness won't impact your status benefits, but they tin person an effect connected your benefits if you're receiving SSI.