Best Loans For People on Disability With Bad Credit 2024

People with disabilities always face great difficulties. They constantly need the help of society and the state. Supplemental security income SSI is often limited to a meager allowance. At the same time, banks are reluctant to issue disability loans.

Banks consider such citizens unreliable borrowers due to the risk of health complications, regular medical expenses, and the risk of losing the source of disability income. This moment is not regulated by law, so banks often refuse a disability loan request.

However, you can easily get additional disability benefits online, even with bad credit. The main thing is to contact a reliable financial company that provides lending services for the disabled world.

Read this article about the best online lenders, the advantages and disadvantages of disability loans, and the details of applying for financial assistance, and get answers to all your concerns.

Loans For People On Disability With Bad Credit: Best Offers 2024

Many financial institutions on the Internet are willing to provide disability benefits for people with bad credit. However, it is important to approach the choice of the company responsibly.

First of all, pay attention to the official registration. Give preference to registered online companies operating within the law’s framework. Learn about the interest rate, payment schedule, late monthly penalties, etc. Sign the agreement only after careful study.

If you find it challenging to choose the best personal loan, check out our compiled list. We have selected the best loans for people with disabilities and analyzed them briefly. You must look through and choose the most suitable tax credit options.


People with disabilities often choose the free BillsHappen® service for borrowing money. This is not a direct lender. This is where you can connect with a direct, reliable lender. The company’s website has a straightforward interface, so navigation is easy.

Disabled individuals can get a loan ranging from $500 to $5,000. Interest rates and loan terms vary depending on the lender you choose. Key features of BillsHappen®:

  • Fast lending up to $5,000;
  • Multiple offers from lenders;
  • No credit rating requirements. Even those with bad credit scores get approved;
  • A person only needs a valid bank account and a social security number to borrow money online.


The financial company PersonalLoans™ also deserves attention. This is a good choice for disabled persons (disabled students, disabled people of working age, and disabled veterans) who have bad credit. Required credit score – 580. Money can be received quickly, often even on the same day. The available loan amount is $1,000-$35,000.

The purpose of the loan does not matter. That is, you can get a payday loan to cover any legal expenses: buying a car, paying for tuition, paying medical bills, etc. This is the main advantage of PersonalLoans™.

The disadvantage of the service is the high APR on disability personal loans. They range from 5.99% to 35.99%. In addition, a funding fee of 1%-5% is usually charged. The repayment term is 90 days to 72 months.

Requirements for borrowers are not strict. The main thing is to be at least 18 years old, live in one of the US states, and have a valid checking account.


CreditLoan® is another good loan source for disabled persons with bad credit. It started operating back in 1998. During this time, the company has helped more than 750,000 applicants find reliable lenders and obtain profitable financial services.

The minimum loan amount available is $250, and the maximum can be up to $5,000. Interest rates and loan terms vary. The advantage of CreditLoan® is that it specializes in different types of loans, including personal loans, mortgages, credit cards, auto financing, etc. In addition, the credit check is not strict.

The company approves most applicants. CreditLoan® has no significant cons. Well, except that it is an indirect lender, and the available loan amount does not exceed $ 5,000.


MoneyMutual® is one of the largest online lending networks in the US. It is focused on disabled people with a bad credit history. The available disability loan amount is $200-$5,000. APR ranges from 5.99% to 35.99%. Loan terms are 3-72 months.

The company quickly connects applicants with lenders. The main thing is to meet the requirements and fill out the application with true personal data. The requirements for customers are more serious than those of CreditLoan®, PersonalLoans, and BillsHappen®.

They include the following:

  • Age 18+;
  • Citizenship or temporary residence in America;
  • SSI benefits;
  • $800 supplemental security income SSI;
  • Active bank account.

The disadvantage of MoneyMutual® is that financial services are unavailable throughout the US. For example, New York State residents cannot borrow money here.


CashUSA offers convenient and fast service for all types of personal loans. Requirements for borrowers are simple. The network of lenders is wide and varied. Rates are competitive. The website is reliable and secure, so all user information is protected.

Financial assistance is available to both people with disabilities who receive disability benefits and those who do not receive them. CashUSA is perfect for those who need money to cover emergency medical expenses, utility bills, etc. It can even be users with bad credit or no credit at all.

The minimum loan amount is $500. The maximum loan amount is $10,000. APRs are 5.99%-35.99%. The loan term varies between 90 days to 72 months. The main advantage of the service is fast financing. Borrowed funds are usually sent to the borrower’s card within one business day.


If your disability benefits are not enough to cover expenses, BadCreditLoans is ready to provide support. It provides access to an extensive database of online lenders to choose one without any hassle.

Other significant advantages of the platform are that it is 100% free, works around the clock, and ensures the privacy and security of users.

To get a loan, you need to follow three simple steps:

  1. Go through the application process;
  2. Compare available options;
  3. Choose the best lender and get approved.

BadCreditLoans offers entire loan amounts ranging from $500 to $10,000. APR varies from lender to lender. The repayment term is 2-5 years. The credit check is not strict. There is no minimum credit score requirement. All candidates are considered.

However, people with credit scores below 500 can borrow no more than $1,000. This is the downside of the service.

What Is a Disability Loan?

Federal government agencies usually provide social assistance to people with disabilities. But often, social security disability benefits are not enough to cover expenses. A disabled person can apply for a disability loan from a bank.

Loans for disabled people can help cover basic daily expenses (such as groceries, mortgage payments, utility bills, etc.) for those who cannot work due to their disability. However, the bank employee usually pays attention to the applicant’s health condition.

The universal credit agreement formalizes the parties’ relationship, so the lender is interested in the health and financial stability of the borrower for the coming years.

An individual receiving disability benefits does not possess such qualities and may fail to fulfill loan obligations due to objective circumstances. Therefore, the risk of being rejected by the bank rises sharply for such an applicant.

In this regard, it is wiser to apply for a disability loan online. Financial companies on the Internet provide payday loans and personal loans on favorable terms. The approval rate of applicants is very high. The loan effect on a credit score is usually positive in case of fulfilling the assigned obligations.

Loans On Disability Benefits: How They Work

Online loans on disability benefits work very simply. You choose the lender you like best and submit a loan request. When filling out the form, provide only true personal information (name, age, email address, social security number, credit score, substantial gainful activity) to avoid a loan rejection.

Once approved, expect the cash advance to be credited to your bank account within 1 business day.

Loans For People On Disability With Bad Credit

A credit score is one of the most essential criteria lenders assess. This is a critical indicator of the financial stability of the borrower. If an applicant has a good credit score (from 670 to 739), he can get a loan on the most favorable terms (for a more extended period, at lower interest rates, etc.).

If the credit is wrong (600 or below), the applicant will likely be denied or approved for a loan on unfavorable terms (high rates, etc.).

As for people with disabilities, many online lenders are ready to provide them with disability benefits even if they have bad credit.

However, when choosing an institution, paying attention to the minimum required credit score, APR, and other loan conditions is essential. This will allow you to choose the best lender and get financial services with the maximum benefit.

Can I Get A Personal Loan On Social Security Disability?

According to the Social Security Administration, Social Security Disability Insurance is a federal program that provides government benefits to people with disabilities who have limited income and financial resources.

Many think this is just a Supplemental Nutrition Assistance Program for the elderly with an SSI resource limit. Social Security Administration states that most beneficiaries are indeed pensioners. However, people with disabilities of any age can receive government assistance.

Suppose you have received a Social Security number from the Social Security Administration, but the SSI benefit is insufficient. In that case, you can get a short term loan on Social Security Disability Insurance.

The main thing is to meet the requirements of the selected lender (age, income, credit score, etc.) and get your loan application approved.

Types Of Disability Loans

There are several types of disability benefits for people with disabilities. If you are planning to receive financial aid from a lender, you need to decide in advance on the type of loan. Check out the main types of disability payments and their brief characteristics below.

Personal Loans

A personal disability loan is a cash advance the borrower receives from a credit institution for needs. It can be used for any purpose, including debt consolidation, large purchases, emergency expenses, etc.

Such a disability loan is best for those who need a lot of money for a long period. Loan amounts typically range from $2,000 to $50,000. The annual interest rate is 5.74%-35.99%. Payment terms are from 12 to 60 months.

The main advantages of this type of lending include:

  • A variety of offers from reliable lenders;
  • Simple requirements for disabled veterans;
  • The minimum set of documents;
  • The possibility of repaying the loan ahead of schedule without penalties.

Despite the advantages, personal loans have several important points to take into account:

  • The applicant does not always receive disability payments in the amount requested;
  • The annual interest rate may be higher than expected;
  • The term of a personal loan can be up to 7 years. When signing a loan agreement, you must consider whether you can fulfill your obligations for a long time.


A mortgage loan is a long-term loan for purchasing real estate at 3-15% per annum. In this case, the property itself is the collateral. Due to their long-term nature, such loans are incredibly convenient in cases where the payment of interest and repayment of the existing debt is possible only from current low incomes, that is, in small installments.

The average mortgage loan amount is $218.08 thousand. The term of the loan is 15, 20, or 30 years.

The main advantage of a mortgage loan is that it provides a disabled person with the opportunity to purchase housing without having to save money for a long time.

The disadvantage of such a personal loan is a high overpayment since the rates are considerable and the repayment period is long.

Auto Loans

Auto loan is a loan aimed at a specific purpose – purchasing a car. The borrower’s funds cannot be used to cover any other expenses. A car purchased under the car loans program is used as collateral until the debt is paid.

The amount of a car loan depends on the value of the vehicle. For example, the average loan amount for a used car purchase is $28,506. The average loan amount for a new car purchase is $41,665. The average national interest rate is 5.27%. Loan term – 60 months.

An auto loan is a good option for those needing a car urgently but not having enough money to purchase a vehicle. The main advantage of this type of lending is the ability to buy a car quickly.

The disadvantage of car loans is a significant burden on the borrower’s budget, equal to the monthly payments of the loan amount.

Pros And Cons Of Disability Loans

Loans for people with disabilities have some pros and cons. Let’s consider them in more detail. Check out the table below.

Pros Cons
Convenience. You can apply for a loan without even leaving your home. The application can be easily submitted online on the lender’s website High annual interest rates. Sometimes interest rates on loans are high, and therefore overpayments can be quite large
Multiple options. Many financial institutions are ready to lend to people with disabilities. Difficulties with finding a good option are rare Some lenders offer short repayment terms. If you take a large amount, it is recommended to pay close attention to the return period. Some lenders give money only for a short time.
Applicants with bad credit are approved. A low credit score is not a barrier to getting a disability personal loan The risk of falling into a debt hole. When deciding to take a loan, you must carefully evaluate your financial capabilities and determine whether you can fulfill your obligations under the agreement. Otherwise, you can get into a debt hole
Fast coverage of financial expenses. If you are unemployed and government benefits do not cover your daily expenses, a loan can be a great solution to financial hardship
Long-term lending. Do not worry that you will need to repay the borrowed amount immediately. This is only the case when applying for payday loans. Personal loans for people with disabilities are repaid over months or even years through affordable payments

How to Qualify For A Personal Disability Loan

Qualifying for a personal disability loan is not difficult. The main thing is to meet the general requirements and collect all the necessary documents. Read more about this in the paragraphs below.

General Requirements

If you want to get a personal loan while on disability, please check if you meet the basic requirements:

  • Age 18+;
  • US citizenship or temporary residence;
  • A regular source of income (for example, social security benefits) from $800 per month;
  • Social Security number;
  • Active bank account.

Needed Documents

The minimum package of documents is needed to get a disability loan. Usually, this is an identity document and a medical document confirming a disability. However, some lenders require a wider package of documents and may request proof of limited income, proof of address, etc.

Alternatives to Disability Loans

Like any other type of loan, disability payments have several alternatives:

  1. Cash advances;
  2. Disability insurance;
  3. Credit union loans;
  4. Loans from state and local agencies;
  5. Student loan forgiveness;
  6. Housing grants;
  7. Credit card debt;
  8. Tax credits, etc.

It may be more beneficial for you to get one of the popular alternatives.

Cash Advances

A cash advance is a cash withdrawal against the credit limit using the user’s credit card. This alternative is only recommended for emergencies due to the cash advance fees and high APR. Cash advances can be completed at a bank or ATM.

Disability Insurance

Disability insurance is a type of insurance that provides income when a person is unable to perform work duties due to a disability. This is a good investment for most people as it greatly reduces the risk of financial setbacks if you become disabled.

Loans From Families or Friends

Loans from family and friends can help a disabled person cope with financial problems. They are good because they usually do not imply any interest. However, a person’s inability to repay borrowed funds can lead to deteriorating relationships with family and friends.

Loans for people on disability are no more expensive than regular loans. Online lenders lend money at fairly favorable APRs.

You can have as many loans as needed, provided lenders approve them.

It all depends on what type of disability personal loan you choose. In the case of payday loans, the loan amount is $500 – $1,000. If it is, for example, a mortgage, then the amount may exceed $200,000 or more.

You can get a disability loan with a 580 credit score, as many lenders approve applications from people with bad credit. But APR can be higher than usual.