Every adult US citizen can apply for a bank loan without any problems. It is necesary to provide a few documents: proof of income, identity and residence. But what about people with disabilities, especially those who do not have a job? Not every credit organization is ready to take such risks and often refuses to lend to people with health problems. Let’s try to figure out how to get a loan if you get a disability and how to boost your chances of getting accepted for a loan.
How does the bank treat customers with disabilities?
When applying for a loan with a bank, they will directly refuse because of your disability since no bank has the right to infringe on the rights of customers. However, in practice, everything is different, and the percentage of loan rejection for this category of citizens is quite high. This can be explained by the unwillingness of the banking organization to take risks because a person with disability may have difficulty repaying a loan. State support is often not enough.
People who have health problems that lead to disability are often unable to work. Most of the disability benefits are spent on the purchase of expensive drugs and treatment. Also, a banking organization cannot issue loans to people with disabilities secured by property, since it is prohibited by law to deprive people with disabilities of housing, even if they have an outstanding debt. So, if a person took out a loan and got a disability, the probability of its closing is high (of course, if a person provides all the necessary documents).
Can a disabled person get a loan?
Despite numerous restrictions, disabled people still have a chance to get a loan. The chances will increase significantly if a person has is a high income and can provide guarantors or collateral (an apartment, a car). At the same time, it is unlikely that it will be possible to get a long-term loan. Only a few options are available.
But even if you have a high income, the banking organization will certainly take into account all the necessary expenses of the client: the purchase of medicines, payment for treatment, etc. If the bank is satisfied with your income/expense ratio, the disabled person will receive a loan. Be sure to choose the right loan amount and calculate your income before applying for a bank loan.
If the bank declined your loan request, but you still need to get a loan, you can apply for a payday loan online. Microfinance organizations treat all social groups of clients equally. You can get a short-term, small-dollar loan on beneficial terms – without collateral, guarantors and credit checks. The number one advantage of payday loans is that they’re easy to access. In fact, many cash advance lenders promise access to cash within 24 hours. Even disabled people may qualify for payday loans. The main thing is to meet a few borrower eligibility criteria. For example, to get approved for payday loans online California, you need to legally reside in this state, be at least 18 years old and have a source of a steady income (disability benefits are also suitable). Also, payday loans are well known for helping those with less-than-perfect credit. Consumers can usually apply online with no need to go anywhere. The funds can be received as soon as the same day (often in 1 hour) and can be used for whatever purpose, including vacation, car repair, home improvement, medical treatment, utility bills, education, debt consolidation, etc.
Is it true that being on disability gets me out of paying loans?
When you get on disability, the loan is canceled. But the borrower must document the disability. To do this, you need to personally contact the nearest bank branch to submit an application for debt restructuring, due to deteriorated financial situation. This will allow you to avoid penalties and late payment fees, get a loan extension, or completely close the debt. Everything is considered on an individual basis and depends on the circumstances.
To close a disability loan, you must also get an appropriate certificate. Each banking organization has its own conditions for writing off debt, so be sure to check this information with employees. But such benefits are not available for partial disability or for short-term disability. Such borrowers are required to fully repay the debt. You can ask the bank for an extension – in most cases, credit organizations are willing to agree to such conditions.
How to improve chances of getting a loan if you are disabled
To increase the chances of getting approved for a loan, a disabled person can additionally provide:
- Proof of income;
- Guarantor(s);
- Collateral.
It is better to check with the bank for a complete set of documents required.
Your chances of getting accepted for a loan improve when you have other income besides disability benefits. For example, a person with disability can find a legit online job.
How to get a loan for an unemployed disabled person
If you are a non-working person with disability, one of the best options for obtaining fast cash may be to borrow from a working relative or friend. A relative, in turn, can conclude a loan agreement with a disabled person in a simple written form with a receipt confirming the subsequent loan.
If you need a small amount, you can get a credit card. To submit a credit card application, you need to provide your full legal name, SSN and/or ITIN, housing costs, phone number, employment status, gross annual income, and mailing address.
Another option is to get a loan secured by property with the subsequent delivery of this property for rent (for example, a car or an apartment).
If none of the above options is suitable, you may also try to get a payday loan. This borrowing option may be more expensive than the other suggested options, but you will receive the money quickly regardless of your disability and be able to use it for whatever purpose. The main thing is to be sure that you will be able to repay the loan on the due date specified in the agreement.