Life with a disability can make things much more challenging. This case especially applies to those who live on a low income and are trying to borrow money from legitimate financial institutions. However, even though getting a loan can be difficult for some people with disabilities to obtain, it’s not completely impossible.
You can still get a loan while on disability since banks and other financial lending institutions are required by law to assess their applicants equally whether they’re disabled or not. Assessing whether an individual would qualify for one should be based on other factors such as their overall capability to pay back a loan and their credit scores.
If you want to learn more about cash loans that are available for people with disabilities (why you should get one, its processes and level of difficulty when acquiring, and what to avoid), then this article can guide you on your decision to get a loan.
Is It Difficult To Get A Loan While On Disability?
Living with a disability can be costly, which is why governments usually provide them with financial assistance. For instance, if you’re living in Ontario and living with a disability, then you’re probably a recipient of the Ontario Disability Support Program (ODSP). Financial assistance programs such as this normally aim to cover additional and other basic living expenses, such as prescription medicine, food, shelter, and clothing.
If you’re wondering whether receiving support from the government would hinder your chances of getting a loan, then the short answer is no. There are loans that are designed specifically to cater to those who receive financial assistance from the government. ODSP payday loans, for example, are short-term loans that people with disabilities can acquire when they need additional funds for personal reasons.
How To Get A Loan While On Disability?
To know more on how to get a loan while on disability, you have to check with your prospective lender’s qualifications. If you’re able to meet such basic requirements, you can continue to consider applying for a loan. Normally, you’ll be required to provide your financial information, including credit scores and a bank statement that shows your net income or that you’ve been receiving support continuously for at least 90 days.
If you’re eligible, then you can choose to apply for a cash loan by following the specific procedures that are outlined by your chosen financial institution. Quick cash loans usually allow disability support program recipients to borrow up to USD$1,500, which could be paid back as soon as they get their next paycheck. Larger loan amounts are possible depending on your financial need and which lender you’re planning to borrow from.
Even if you have bad credit, you don’t have to worry that much about getting rejected over a loan application while on disability. Most lending institutions recognize the uniqueness of disabled individuals’ financial situation, so most prefer to assess applicants based on their actual financial strength and current relationship with money.
Depending on where you’re applying to, the process of getting a loan while on disability can be fairly simple. This can either be done at the comfort of your own home or you can also apply directly to a physical branch of your preferred financial institution near your area. Whether you’re applying online or physically, be sure to shop around and determine the reliability of each lender institution to avoid any unnecessary financial crisis in the future.
Why Get A Loan While On Disability?
There are many situations where you might find yourself needing to acquire a loan. Here are common reasons that could qualify you for getting a loan while on disability:
- To manage your finances during unemployment
Covering essential costs while you're unemployed due to temporary disablement could be particularly difficult. Fortunately, you can opt to get a cash advance loan instead to manage and lessen your financial crisis.
- For purposes of debt consolidation
When you owe money from multiple lenders in the past, it’s possible to consolidate your debts into one by getting another loan with a lower interest rate to pay off all existing debts. Through this, you’ll get to pay off only one debt for the rest of your term agreement.
- To pay for home repairs and other renovation projects
Since you’re disabled, you might want to renovate your home in a way that would better accommodate your way of living. Your home may also need a number of repairs to make sure you stay healthy and safe when living in it, so it’s a good idea to consider getting a loan for such purposes.
- To pay for vehicular-related bills
Transportation can be challenging for people with disability, and having issues with your car might pose further inconvenience. Get a loan if you have to pay for car repairs and maintenance that may not be covered by your car insurance.
- To pay for additional medical bills
As mentioned earlier, medical expenses shouldered by disabled individuals can be extremely costly that, sometimes, the financial support provided by the government isn’t just enough. Also, please note that disability support programs, such as ODSP, don’t necessarily include other health-related expenses such as dental care and other specific medications.
- To cover childcare expenses
Having a disability can hinder your capability to provide for your children well enough. During times when you need to cover additional childcare expenses, such as their hospital bills or school fees, getting a loan would be a good idea.
- To cover other unexpected bills
Other unexpected bills that may come include paying for your legal fees in case you get yourself into legal trouble and emergency vet bills that aren’t covered by pet insurance. Of course, there are still other reasons that are deemed admissible by lending institutions. To know if your reason is viable, all you have to do is ask your creditor about it.
In any case, you should still consider not taking out any loan at all when paying back loans isn’t even part of your plans to begin with. Keep in mind that being on a fixed low-income could pose quite some challenges to pay back any further debt. So, it’s not really recommended that you get another loan while on disability.
What To Avoid When Getting A Loan While On Disability?
When you’re in a tight financial situation, it can be tempting to get the first loan that you can get your hands on. However, there are many risks that come with not carefully determining the reliability of your prospective lending institution. Remember, predator lenders are everywhere and, oftentimes, they’ll take advantage of financially desperate individuals.
It’s important that you become wary of loan offers advertising that they can ‘guarantee’ you a loan as soon as possible. Keep in mind that no legitimate financial institution can fully guarantee any individual that they’ll be accepted for any kind of loan. Although it’s possible that they can offer you a quick assessment process, it’s just not possible to guarantee a 100% approval rate at all.
Get A Loan While On Disability Now
Should you get a loan while on disability now? This will highly depend on your current financial circumstances. Although taking out a loan isn’t recommended at all for anybody because this will only cost you additional debt to pay for in the future, it’s good to know that you’ll have a safety net in case you might need additional funds for emergency situations.
Again, you don’t have to worry about not getting the chance to be considered for a loan when you’re an individual with a disability. There are many lending institutions that are very willing to lend money to you easily. Just be sure that when you check out different lenders offering loans that cater to people with disabilities, they’re reliable enough, completely transparent, and ideally offering you a reasonable interest rate.
Remember, getting a loan should be able to help you manage your finances and not put you in a worse financial position. So, get a loan amount that you can comfortably pay back.