Social Security Disability Loans

What Are Social Security Disability Loans?

It is important to understand what "disability" is, before digging deep into disability loans.

To be deemed disabled, the Social Security Administration (SSA), must confirm that:

• You can’t work properly like before.
• You can’t venture into distinct jobs because of medical reports.
• The disability challenge is life-threatening, and would prevail over a year or has existed for more than a year.

When your disability stops you from working, but you need a loan to cater to day-to-day needs and bills, a social security disability loan is perfectly suited for you.

Social Security Disability loans are not disability benefits, and the disparity originates from how the SSA reviews disability conditions to determine if people get disability benefits, and there is no interest rate on them. Whereas, social security disability loans are processed by private lenders, meaning that after you apply, the lenders run a soft check on your credit history to determine how much they can offer you, and when you accept the offer, you'd pay back with interest over a period of time.

Who Will Easily Take Out A Social Security Disability Loan?

To take out a disability loans, you are required to meet the following criteria:

• You must be resident in the United States
• You must be 18 years, at least
• You must have an active bank account
• You must have an income stream that is consistent
• You must also have an ID that is verified.

Application Process To Get Social Security Disability Loans

You are required to fill out a form with some personal and financial information that will help us connect you to our network of lenders. The information you fill in will be verified by our lenders. They will give you offers after that. And the offers usually contain terms and conditions, interest rates, loan amount, and other factors. After accepting your most preferred offer, and lenders approve the amount, the account you registered will be funded, usually as soon as within the next 24 hours.

Advantages And Disadvantages Of Social Security Disability Loans

Advantages of disability loans:

• Apply from home: At your convenience, from your internet-enabled devices, you can apply for a disability loan and get funded shortly after.
• No-work loan access: A disability loan is for you when you are unable to work because of a disability.
• Wide range of lenders: No matter your credit history, you may have access to social security disability loans through our wide network of lenders.

Disadvantages of disability loan:

• On repayment: Getting loans from lenders with short repayment terms. This essentially means that you pay back highly per time.
• On interest rates: Your credit score might influence the interest rate such that it is high. High-interest rates affect the overall shape of the loan and your ability to repay

Way forward:

You can beat these disadvantages by carefully going through the pool of lenders and choosing the one with the terms and conditions that suit you well.

What Can A Disability Loan Be Used For?

• Overall self-care: Self-care and maintenance are very required of individuals with a disability. Taking a disability loan can help cater for such exigencies as food, cleaning, and other important services.
• Specific Home equipment: For disabled people, special machine assistance might be very useful as it aids easier workflow. Handrails on bathtubs, washing machines, and vehicle hand controls, are among the specialized tools you can use a disability loan for.
• Miscellaneous: It is important to note that there is no limitation to what you can do with disability loans. You may however choose to consider the outcome of what you do with it, on the repayment plan.

Can I Get A Loan If I Am Receiving Disability Benefits?

In the simplest form, yes. Even when you are receiving disability benefits, you can still take a benefit loan. Lenders care about your ability to repay the loan. Hence, they are less bothered about whether you are on disability benefit at the moment.

Will A Loan Affect Disability Benefits?

Yes, a loan can affect disability benefits if the amount you borrowed is not spent in that month, it influences your resource limit and when it exceeds that limit, you won't get the disability benefits.

Even though the Social Security Administration doesn’t regard a loan as a form of income, it’s always advisable not to take a loan when you don’t need it to avoid its implication on your disability benefit.

What Loans Can I Apply For On Disability?

There are a good number of disability loan types. Your need will determine the one you get.

Personal Loan

This loan can be collected to cater to personal needs varying from home maintenance, to medical bills, or special aid tools. These loans usually don’t require collateral.

Lenders run soft credit checks and you will be easily eligible for an unsecured disability personal loan.

Short-Term Loan

Medical bills are essential, particularly for disabled individuals. Take out short-term loans can help you cover medical expenses without making you terribly stressful due to its flexible repayment terms.

Car Title Loan

This type of loan is secured using your vehicle as collateral. Your car is at risk if you are unable to repay the auto loan you take.