There’s one thing we all have in common. Medical expenses or the need to replace a car never come at the perfect time.
And, few have the ready cash to cover these. Not without help, anyway.
If you need an installment loan, you are one of the millions facing a surprise expense. They may need a used car, education funds, or a home improvement.
For some, paying off loans and credit cards with one loan offers a budget-easier payment. Installment loans let borrowers pay back large sums over several months, not weeks.
We tend to think installment loans are for those with perfect credit and high income.
So, how could anyone on Social Security Disability qualify? Much less afford the payments?
In fact, those on a fixed income can enjoy them most when facing a significant expense. Installment loans for social security disability are much more common than many believe.
Here’s what you should know.
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Qualifying for an Installment Loan
Requirements for each lender and state may vary. But, the general guidelines for any installment loan are:
- US Citizen Residing in the US
- Over 18 Years Old
- Active Bank Account (to make payments)
- Proof of Income
- Cell Phone
From there, each lender will offer different terms and amounts. For those on Social Security Disability, the application is no different.
Credit history and background have the same qualifiers for every applicant. Of course, there is never a guarantee of approval.
But, being on disability does not disqualify anyone. How long before you’ll know if funds are available? In most cases, within a day.
The Difference in Lenders Who Provide Disability Loans
Lenders can vary in the amount they will approve, the rates, and the payments. Borrowers may apply for amounts from a few hundred dollars to thousands. So, the loan terms can vary.
For those with bad credit, there may be limits. But, paying off an installment loan can give credit a boost, too. Lenders who provide disability loans know income is steady. This can be a positive.
It is a must your payments are manageable. So, each lender will determine minimum amounts. From there, the amount available to borrow is a simple percentage of your income.
Payments on Social Security Disability Loans
When deciding on an installment loan, it’s essential to plan. Apply for only the amount necessary.
Most lenders will need payments either every two weeks or once per month. If disability checks do not coincide with payments, this can make budgeting difficult.
Plan payments around your monthly expenses so you’ll not be short. Though some lenders may offer leniency on due dates, most do not.
And, rolling a loan over to a new time frame can cost plenty.
If you want your installment loan to help you build credit, stick to being on time. You may also find a more affordable payment by lengthening the term of the loan, if available.
Length of Loans for People on Disability
The critical thing to note the length of the loan determines how much you’ll end up paying. The longer the term, the more you’ll pay in interest.
The higher cost is why you’ll want to be sure about the amount you borrow. For example, if you are going to buy a car with your proceeds, figure in the amount you’ll be paying for insurance, too.
From there, add up what you can afford in loan payments. Though you’ll save money by paying it off in less time, taking more time may be more affordable.
A Few More Facts About Installment Loans for Social Security Disability
Because you are reporting your assets each month, you’ll want to make sure you use the entire loan in one month. If not, the funds will count as income.
Make sure to check lenders to avoid scams. If a company is trying to get you to borrow more than you need, walk away. If they do not disclose the terms in full, or you don’t understand them, ask questions.
Last, applying for a loan to more than one place can cause your credit score to go down. Do your research first, then fill out applications.
Loans for Disability and the Military
The Military Lending Act makes some loans unavailable to military members. But, those using their VA benefits for a disability, installment loans are allowable.
Some may need funds to improve accessibility at home, for example. A loan can make the difference between survival and full life.
Veterans have protection from excessive loan rates and fees, too.
When To Not Use an Installment Loan
Installment loans are perfect for larger than regular purchases. Combining credit card payments, or financing unique skills training are also positives.
But, they are not an excellent choice to pay monthly expenses. There are other ways of solving being short on funds for a few months.
A short-term cash flow problem should have a short-term resolution. Not long-term payments. Check instant payday loans no credit check options a suggested short-term solution.
Everyone Needs Help Sometimes
Installment loans for social security disability should change your life for the better. They shouldn’t be difficult or cost too much. Like you, many can get what they need.
There’s one more thing we all have in common. Sometimes we feel like there are way more days between paychecks than usual.
And, it’s easy to panic, thinking there’s no way out. We have great information to help you budget the necessities, and answers when you need help fast.
Check out our blog and online applications. Contact us if you have any questions, too!