Loans for people on income support

People on income support, like Social Security and Disability, have far fewer loan options than those who collect a regular paycheck. In many cases, the problem is verifying income. Some lenders will not take SSI benefits or Disability payments into account when calculating income. There are some alternatives for those on income support, but all options must be reviewed carefully.

Finance Companies

Banks do not typically make loans to people on income support, but finance companies often do. Such companies include: CitiFinancial, HSBC Finance, and Wells Fargo Financial. These companies are subsidiaries of larger companies and direct their lending operations at local communities. It's best to go into an office and speak with a loan officer to fill out an application.

Credit Cards

Credit cards are often the only type of financing those on income support can obtain. Borrowers must be very careful when obtaining credit cards, however. These can be high-interest, high-fee loans that trap borrowers who are already in a precarious financial situation. Make sure to read all fine print carefully before accepting any credit card offer.

Private Loans

Private loans are not governed by any state or federal agency. These are loans made between colleagues, friends, and family members. As such, it's critically important to have an attorney involved to draw up paperwork and negotiate terms. Make sure a notary public endorses the closing of the loan.

Cash Advance Loans

Cash advance loans require a borrower to write a postdated check to a lender, and then have said lender cash that check. These loans should be a last resort only--they often carry the highest interest rates of all loans. This industry has come under government scrutiny and often is charged with engaging in predatory lending practices. Be very wary when accepting a cash advance loan.


Borrowers on income support must be very careful when dealing with lenders who offer "no-doc" loans. These loans are given to borrowers who cannot prove their income on paper. Most often these loans charge exorbitant fees and interest rates.

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About the Author

Based in Eugene, Ore., Duncan Jenkins has been writing finance-related articles since 2008. His specialties include personal finance advice, mortgage/equity loans and credit management. Jenkins obtained his bachelor's degree in English from Clark University.

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