Can you borrow from your Supplemental Security Income or SSI? The short answer is no. But while you can’t borrow from your SSI, the good news is that loan options may be available for people receiving SSI payments from the Social Security Administration. This article will look at some personal loan options you may qualify for.

What Loan Options Are Available for People Who Receive SSI?

While many people assume they may not be able to qualify for a loan if they are on SSI, there are several options available. Qualifying, in some cases, maybe a bit more challenging, but it’s certainly possible. In some instances, SSI benefits and Social Security payments could count as income for personal loan applicants. This, of course, depends on the type of loan and the lender.

Here’s a look at some options that might be easier to qualify for if you’re receiving SSI:

Secured Personal Loan

These loans require collateral, which is something of value, like a car; because of this, they carry a lower risk for the lender. You may be able to qualify for a secured loan even if you’re on a limited income or have a low credit score. Keep in mind that these loans carry their risks for the borrower. If you fail to repay the loan, you may lose the asset you used as collateral, such as your vehicle.

Credit Card Cash Advance

With a cash advance, you withdraw cash with a credit card from an ATM. Getting funds this way is easy, but there is a downside to this. You may be charged a cash advance fee, which is either a flat rate or a percentage of the amount you borrowed.  You may also be charged an ATM fee for the transaction, and the interest rate on cash advances is much higher than if you were making a typical purchase with your credit card. It’s also important to note that interest starts from the day of the transaction for the cash advance, and there is no grace period.

Home Equity Loan or HELOC

A home equity loan and a home equity line of credit (HELOC) are options that allow you to borrow funds by using the equity you have in your home. A home equity loan provides a lump sum of money with a fixed interest rate, which you pay back in monthly instalments. A HELOC functions like a credit card and gives you access to a revolving line of credit with a variable interest rate that you can borrow from as you need to. With a HELOC, you’ll make interest-only payments during the draw period, followed by payments that include both the principal and interest during the repayment period.

Can a Loan Impact SSI Benefits?

If you take out a loan, the money you receive isn’t considered income and won’t affect your SSI benefits. However, if you get a loan and don’t use it all within a month, it will count toward your SSI resource limit for the following month.

If you’re still unsure about how a loan may impact your SSI benefits, you should check with the Social Security Administration (SSA) for more information before taking the loan.

The Bottom Line

If you’re looking to obtain a loan, it’s good to know that there are options available and that, in some cases, SSI can count toward your income. Just make sure you assess your available options and read the terms and conditions carefully before you sign on the dotted line to ensure that the loan you’re getting is right for you.

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