Understanding Loans for Disabled Persons
Usually, people with disability receive financial aid from the government. The money received can be used to ask for a personal loan. However, the amount of loan one can get depends on whether the government sends money regularly and the amount of money they get.
Disabled individuals with low incomes might not qualify for big loans since they might not afford to repay. Those with poor credit scores should go for small loans as this helps them to build their credit scores over time.
Do I Qualify for Personal Disability Loans?
Lenders can prequalify anyone for personal disability loans. This means you can check whether you can get a loan and how much you qualify without affecting your credit scores. Common requirements you are expected to meet include:
- You should be at least 18 years.
- You must be a US citizen or a permanent resident
- You should have a social security number
- You should have an active checking account
- Have a valid phone number and email address
- Have a steady income through employment and benefits
Can I Get a Loan for Disabled Persons With Bad Credit?
Yes, you can secure a loan for disabled persons even with poor credit scores. The aim should be to keep the principal sum small, have a checking account, and have your driving license. Your lender will use your disability benefits to determine how much they can lend you.
Where Can I Get a Bad Credit Loan While on Disability?
The digital world has simplified the process of getting loans, and it should be relatively easy for you to turn to the following lending options:
Direct Lender for Bad Credit
You can work with a direct lender that offers bad credit loans. There are no third parties involved here. So, you will submit your loan details directly to a lender of your choice. The main challenge you will experience here is that it might take you time to find a reliable lender since. not all direct lenders are worth relying on. Therefore, you should be wary of the lenders you choose by making sure you compare options wisely.
Online Loan Broker
Alternatively, you can work with a loan broker like CocoLoan. We are an online broker. Therefore, we don’t offer loans. Instead, we connect you to trustworthy lenders over the internet. With CocoLoan, you can free yourself from the hassle of trying one lender after the other. And the best part is that CocoLoan doesn't charge you any fees for our services.
How Does CocoLoan Compare
 | Why Trust CocoLoan? | |
|---|---|---|
| How much can you get? | $50 to $35,000 | Zero upfront charges |
| What are the loan terms? | 1 - 36 months | Easy repayment |
| Are credit checks needed? | Yes | Mostly soft pulls |
| Are bad credit accepted? | Yes | All credit considered |
| How to apply? | Totally online | Simple and straightforward |
Are There Any Alternatives Available for Disabled Persons?
There are various lending alternatives that disabled persons can turn to and still get the financial help they require. This is not an exhaustive list; you may have to research other options depending on your situation.
Student Loans
It’s worth noting that untaxed social security benefits like SSI and SSDI don’t count as income when considering Free Application for Federal Student Aid (FAFSA), especially when trying to get financial assistance. To get a student loan, you should report other disability income you receive, like workers’ compensation. Other disability benefits might have an impact on the financial assistance you will get.
Cash Advances
You can also get a short-term loan through cash advances. If you have a credit card, you don’t have to worry about credit checks since you can take out a disability loan based on your credit limit. The cash advances you receive can be accessed through your bank’s branches, ATMs, and cash advance checks. Consider using online access if you have limited mobility.
Government Assistance
The federal government provides many assistance programs that help people with disability. These programs can offer financial assistance to help you pay your medical bills, housing assistance, and have access to a service animal. You can also open a tax-free savings account, where withdrawals and earnings are also exempted from tax.
Private Disability Insurance
Some private insurers offer disability policies that cover income lost due to disability. The cost of these insurance policies varies because of the differences in eligibility and coverage. In some cases, the policies will pay you when you can’t work.
Will Taking a Loan Affect My Disability Benefits?
Taking a loan won’t affect your disability benefits. But it might be a different case if you’re receiving SSI. The loan received has no effect if you use all the money within the same month. However, if the loan spills over to the next month, this could affect your SSI resource limits for the following month.
