Social Security Loans Assistance & Options
Getting financial assistance when on a low fixed income like social security can be difficult. Many lenders approval criteria filters out low income earners as their ability to service loans is lower than those on a higher income.
If you are on social security and need a loan or additional financial help you may qualify for Supplemental Security Income (SSI) which is an additional income option for those who receive social security and worked at a low-wage job for most of their lives. Not everyone is eligible for SSI; we will cover eligibility, additional program information, and options regarding the finances of the program in further detail below.
If already collecting SSI jump towards the bottom of the page for loan options for people on social security benefits - including the interest free loan loophole
More about SSI
SSI is not designed to take the place of social security; it is merely additional income to supplement the small amount received in social security by those who earned little while employed. SSI is intended to be used for every day necessities such as food, clothing, and shelter. SSI can be used to support the elderly, blind, and disabled individuals.
Eligibility requirements are simple and detailed below:
- Individuals must be at least 65 years of age, disabled, or blind.
- Individuals must have limited resources and a limited income.
- Individuals must be either a U.S. citizen or an approved alien
- Individuals must not be currently kept in prison, jail, or a hospital at the government’s expense.
Those who are curious whether they are eligible or not, can spend 5 to 10 minutes answering a simple questionnaire with more specific information.
Applying for SSI
Those who have gone through the SSI eligibility screening process who wish to apply for SSI can call 1-800-772-1213 to make an appointment to apply for SSI benefits with an office representative either over the phone or in your local Social Security Office. It is suggested that those who believe they are eligible for the assistance apply as soon as possible to avoid delays or loss of benefits.
Applicants will have to work with support staff and personnel to access required documents and complete an application. Documents include the applicant’s social security card, a public birth record, your proof of citizenship or alien status record, proof of income, proof of resources, proof of living arrangements, medical sources, and work history. This information will be used to determine eligibility and supplemental income amount.
The representatives at the office are trained and obligated to help you within the realms of your best interest. If you apply and don’t get a satisfactory response or outcome, you have the right to appeal.
Just because you or your loved one worked a low income job while they were employed doesn’t mean they should be subjected to poverty in their old age. SSI is designed to help those with limited financial resources live with the basic comforts and necessities of life including clothing, food, and shelter. If you or your loved one are blind, disabled, or over the age of 65 and you have limited income and resources, you may be eligible to receive additional assistance. If you believe you’re eligible, make an appointment over the phone or with your local Social Security Office right away to begin the application process and start collecting the money that you’re due. Don’t forget to have the originals of all required documents to speed up the process and start collecting your money now.
Things to Consider Before Applying for a Loan When on Social Security
There are numerous circumstances that will influence your ability to qualify for a loan if social security is your main or only source of income – some of these conditions include:
- Credit history
- Length of time on social security
- Additional income streams
- Debt levels
- Marital status, dependencies
The above are some of the main things lenders look at and each lender will assigning their own weighting system on what is most important to them when evaluating risk and if they will consider lending to you.
Taking the above into consideration, if you have a negative position across multiple criteria it is best to talk to the lenders in detail before applying. If you submit a high number of loan applications in a short period, this can have a negative impact on your credit score – so be wary of submitting multiple applications and speak to the loan officers first.
Possible Social Security Loan Options
Many social security recipients believe that expensive Payday loans are their only option of getting a small or short-term loan. While they may be a quick and easy way to get cash, they are very expensive and can put you in a bad financial situation quickly. A simple search online will provide thousands of horror stories on the negatives of payday loans.
Below are a range of different financial options and loans for people on social security. If you are overwhelmed with options or are unsure on which option might be suitable for you – speak to a free unbiased financial professional who can access your situation and point you in the right direction.
Check with your bank: Many banks have specialized loan products that they don’t actively advertise. These are newly created loans which they provide that are cheaper alternatives to payday loans. These products go under names such as check/saving account advances, stretch loans, salary advances (if you work). Ask for these products at your bank or credit union - See a full list of low income loans here.
Peer to Peer Lending: This is a newer form of funding that is much cheaper than payday loans and they often provide borrowers with higher limits than other lenders. There are numerous p2p lenders popping up so make sure to check reviews of providers you may want to borrow from.
Government Benefits: If you are having cash flow problems, looking into government benefits beyond Social Security and Supplemental Security Income can go a long way. Learn how you can get additional help with paying bills here.
Family or Friends: Borrowing from people you know may not be everyone’s cup of tea but this can be one of the quickest and cheapest ways to get financial help.
Secure Loans: Depending on your situation and why you need money, putting up collateral to obtain cash may be another option. If you do consider an option like this, be 100% sure that you can make your repayments as you will lose the asset if you default.
Interest Free Social Security Loans
This is more like a loophole that is suited to higher income families and individuals. The loan strategy works like this. Anyone who is collecting Social Security has the ability to change their mind on when they collect payments and start over – as long as they pay back the initial money received. So, if they invested this money or earned interest on this money, they get to keep any income earned and only have to pay back the initial payments received.
The borrower essentially benefits in two ways:
- They keep any interest earned on the original payment amounts (an interest free loan from Social Security)
- Future Social Security payments may be higher as they “postponed” their start date
As an example: A person starts receiving benefits at the age of 62 and then decides to start over at the age of 70. If in that 8-year period, the person received $1300 a month that would equate to $124,800 over that period. If they earned 8% interest each year on that amount, they would receive around $50,389 in interest payments.
So the borrower would get $50,389 in interest payments for that eight year period and still get access to the original $124,800 as part of their social security payments when they start over – This is how those who can afford to pay back the principal can receive an interest free loan from Social Security.
Additional Social Security Benefits Help
Social Security is a complex benefits program that covers numerous financial assistance situations including retirement, disability, survival benefits, supplements and more. To get more detail and review some of the frequently asked questions in regards to benefits and financial assistance review this guide to social security help or scan this FAQs guide on SSI and Social Security.
Behind in rent need help before I get evicted
Just came home from prison. In for selling drugs,don’t wanna sell again need help getting on feet.. thanks
I don’t like a lot of these so called lenders they us down we live on peanuts we don’t get enough money to cover almost nothing
Does these lenders care sadly they don’t care about us they care about millionnare it makes sick am needing a Long term loan so I can get back on my feet
Will someone please help me? I’m behind on my rent and can’t pay it. Im on a fixed income only. I receive SSI benefits only of $733 a month. I’m about to get evicted I believe.
Go to office and request an EAP EMERGENGCY ADVANCE PAYMENT .must have notice to pay
I have a daughter that is on ssi and $733 a month but we need a loan for shopping for her ceremony can u please help us
It’s absolutely necessary to relocate so I can have as much fair opportuiies as others. Unfortunately I cannot afford to make this move without help. I’m on SSI and I need some help with relocation funds. I can pay a loan back. It may take me a little longer than others. Thanks for listening.– Stuck On A Merry-go-round
I really do need help would someone please help me im only receiving ssi $733 a month and me and my kids about to be throwed out on the street
I lost my apartment and living in an extended stay with my child. If i do not have this week’s rent by 6-18-2016. We will be homeless. Please help Carrie
Im just trying to borrow $200,I do receive ssi and can repay the loan.. I don’t have a bank account.. My money is put. on my debit card .who can I go to?
Looking for a cheap apartment, I only received ssi, $733.00, rent isn’t the issue, the deposit is, my girlfriend is pregnant, staying with her friends, but we need our own place, any help would be most welcome.
Good luck the only option is to stay with family and friends or get a job
Try the wsap (welfare set aside programs ) go to social services office they can help pay your deposit
I Need a loan to get my car back to start new job next week ..Can I borrow on my social security even if don’t receive SSI..
I need $200 until my Disability Check. Emergency. I have a Checking Account. Please help me.
I’m looking for help (loan)!! I receive a SSI check & I’m trying to get a loan so I can have enough money to move into a place of my own…
I am on ssi am in debt for a lot is there a way to get out of debt
I recieve SSI benefits of only $735 a month and i am trying to get some EMERGENCY help for Christmas Gifts for my 2 girls. i have a Checking Account that is Direct deposit can someone Please help me?
need emergency loan im on ssi
I am on sis can I get next month’s payment now to get my elec turned back on
Hi i receive ssi of 735 monthly ineed a very small loan to get my wk dome on car i have the rest to get it done bit im a little short i do have extrs income im self employed getting paid cash daily but i also have bills can u plz help me
Need a loan for bills
Is there anyone who does loans for ss i recipient s
Need a long-term loan of over $3,000 to purchase a gas Trike, since my mobility is limited. I am an SSI recipient for the rest of my life. I’ve never applied for a loan before, so I have no credit history. PLEASE HELP!
Easy to check out, readable…heck I had formed to
leave a commment!
On ssdi have no money for my kids for Christmas barely enough to pay bills and eat for a month I fill so guilty I can’t get my kids Christmas gifts my son is 13 my daughter is 11 please help thank you
Im looking for a loan to help with bills an Christmas for my kids. How do i get a loan im on ssi an ssa
I need a car to get to my dr appointments, my daughters appointments. I am disabled, going through divorce, domestic violence victims. We are trying to move to another county also. I had a car that the motor just went out. Thank you.
I get 1301 in Social Security Disability, need help on house payment plus have 4 girls and had 23 brain surgeries wondering if y’all can help me?
I get 1600 hundred a month no children no spouse just me I wan5 to buy a house nee a small loan.
I am on SSI with broken neck. I dont get enough to rent a place? About 400 short per month. Any ideas on how or where to look for help. About to be homeless!!1 What can I do? Please help anyone!
I’m 53 totally disabled 17 yrs I’m struggling to even eat plz help