What Is Defined As A Disability?
In order to qualify for loans for people with disabilities, it is important to first understand what is defined as a disability.
The Social Security Administration (SSA) defines a disability as an inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.
This is a very broad definition, and as a result, many people may qualify for loans for disabled individuals. Some common examples of disabilities that could make someone eligible for these types of loans include:
- Missing limbs
- Chronic heart disease
Many other conditions could also qualify someone for loans for disabled individuals. If you are unsure if you or someone you know qualifies, it is important to consult with a medical professional or the SSA to get a better understanding.
What Are Loans For Disabled Persons With Bad Credit?
If you're a disabled person and you are looking to get loans with bad credit, there are still options for you.
Here are two main types of loans for disabled persons with bad credit:
- Secured loans. A secured loan is when you put up collateral, it can be a piece of property in order to get the loan. A common example is car title loans, where you need to provide the title of your vehicle to secure the loan. The downside to this is that if you can't make your payments, you could lose the collateral.
- Unsecured loans. An unsecured loan is when you don't have to put up any collateral. The downside to this is that the interest rates are usually higher.
There are also loans specifically for disabled persons with bad credit. These loans are offered by various non-government organizations and can usually be found online.
What Kind Of Disability Loans Should I Choose?
There are a few things to consider when choosing a loan for a disabled person with bad credit. The first is whether you want a secured or unsecured loan. As mentioned before, secured loans have the benefit of lower interest rates, but you can lose your collateral. Unsecured loans don't have this risk, but they are relatively more expensive.
Another thing to consider is the terms of the loan. Make sure you are comfortable with the time range you have to repay the loan and what the interest rate will be. The longer the repayment period is, the higher the total cost will be.
For instance, personal loans are usually the best choice for people with disability who need to take out a loan despite their bad credit. These are unsecured loans with fixed interest rates and longer repayment periods. Although the interest may be a bit higher than secured loans, it's a lot more manageable for people with disabilities since you'll know exactly how much you'll have to pay each month.
What Are Disability Benefits?
Disability benefits are payments made to people who are unable to work because of a physical or mental disability. The Social Security Administration (SSA) is the government agency responsible for releasing disability benefits.
To qualify for disability benefits, you must first have worked in jobs covered by Social Security. You also must have a medical condition that meets Social Security's definition of disability. After the qualification for disability benefits, you will receive a monthly payment from the Social Security Administration. The amount of your payment will depend on your work history and earnings.
In addition to monthly payments, you may also be eligible for other benefits, such as Medicare, food stamps, and housing assistance.
Can I Get Loans For Disabled Persons With Disability Benefits?
If you're relying solely on your disability benefits, getting traditional bank loans for disabled persons with bad credit may be difficult. However, there are a few options available to you.
The most straightforward solution is to get a co-signer for your loan. A co-signer is someone who agrees to repay the loan if you can't, and this co-signer can be a family member or friend, as long as they are willing to take risks. Having a co-signer will increase your chances of getting approved for a loan.
Another option is to search online for reputable lending brokers or loan companies. US Installment Loans is your one-stop shop with all kinds of loan services available. We are an online broker website that connects you with our network of lenders, eliminating all the hassles when getting loans online.
Lenders we work with specialize in loans for people with bad credit and may be able to help you get a loan. They also tend to be less strict with their requirements, typically only needing you to be at least 18 years of age and have a steady income. Your disability benefits are considered a stable source of income since you'll continue to receive them as long as you are disabled.
How Much Do You Want?
Will Lenders Reject My Loan Request Based On My Disability?
Lenders are not allowed to reject your loan request based on your disability. This is against the law. The Americans with Disabilities Act (ADA), signed in 1990, prohibits discrimination against people with disabilities in all areas of life, including loans. This means that lenders cannot use your disability as a reason to reject your loan application.
However, they can certainly claim that they rejected your loan request due to reasons other than your disability, such as your credit score. Luckily, there are loans out there that don't require a hard credit inquiry, which assesses your creditworthiness by your income and employment to determine whether you're eligible for a loan. These loans are typically called "no credit check loans" or " loans for people with bad credit." While there's no such thing as a loan with guaranteed approval, these are the closest thing to it.
Can I Still Get Loans For Disabled Persons Even With Bad Credit?
Although it may be challenging for disabled persons to get loans with bad credit, it's still possible. US Installment Loans has a panel of bad credit loan providers experienced in dealing with people who have unpleasant credit backgrounds. These lenders tend to be more flexible with their requirements and may only require that you meet the bare minimum in order to qualify for the loan.
In most cases, lenders want to see applicants with sustainable repayment ability. Since disability benefits are considered a source of income, it looks promising from the lender's perspective, and you may still have a chance of getting approved if you're receiving them on a regular basis.
How Does US Installment Loans Compare?
|How much do I qualify for?||Up to $35000||Competitive rates|
|What's the max loan length?||Up to 36 months||Fast decisions|
|Do lenders check my credit?||Yes||Soft credit checks|
|All credit levels accepted?||Yes||Bad credit doesn't matter|
|Chances of approval||Good||High approval rates|
|When am I allowed to apply?||24/7 online||Easy application|
Things To Consider Before Getting A Loan For A Disabled Person
Before you take out a loan, you should definitely consider a few things.
- Make sure you need the loan. Ask yourself if you really need the loan and if you can afford to repay it. For instance, if you don't have disability benefits yet and you're thinking of taking out a loan, make sure that you have another source of income, or else you might end up in more debt than you started with.
- Think about the terms of the loan. What are the interest rates? How long do you have to repay the loan? The last thing you want is to get stuck in a loan with high-interest rates that you can't afford to repay.
- Do your research. Compare loans from different lenders to see which one offers the best terms. Never make quick decisions; don't just go with the first loan you're approved for.