Retired senior citizens cannot borrow money from their social security. Still, they can use the regular government-backed monthly checks to get a personal loan from a private lender.
Finding ways to reduce costs is always better than borrowing money during retirement at age 70, 85, or 90.
Fortunately, many benefit programs help retired seniors. The best financing alternative will always be having a third party fund the expense.
Meanwhile, the worst-case scenario is having to repay a loan with interest charges and origination fees on a fixed income. You might fall behind and never catch up.
Best Loans for Seniors
The best personal loans for senior citizens relying on Social Security retirement income do not require repayment, charge interest, or impose origination fees that you cannot afford on a fixed income.
Fortunately, programs designed to help people aged 70, 85, or 90 with specific needs provide a superior alternative. Please do not borrow money without first investigating these cost-saving options.
Benefits Not Loans
The best loans for general needs do not require seniors on Social Security to repay the lender because the government provides benefits for services that lower living costs.
Government benefits for seniors over 60 are bountiful, including SSI, PACE, Medicare, Medicaid, etc. Be sure to apply for each program before borrowing money you cannot repay.
Home Repair Loans
The best home repair loans for retired seniors do not charge interest or origination fees. Charitable organizations often prioritize serving the elderly in their missions, meaning you might easily find an alternative you can afford on a fixed income.
Many programs help seniors with home repairs, meaning you might not have to borrow money to pay a contractor to fix leaky roofs, foundations, or pipes. Of course, you may have to identify ways to pay for the materials, but the skilled labor might be free.
Home Improvement Loans
The best home improvement loans for senior citizens on Social Security do not require repayment. Grant money is readily available through a government initiative called the Weatherization Assistance Program (WAP).
WAP grant money funds energy-efficient home upgrades for low-income families. Retired couples on fixed incomes often qualify for these free services.
- Window replacement & repair
- Furnace, water heater, and air conditioning replacement
- Appliance replacement, including refrigerators
- Roof replacement & repair
Medical & Dental Loans
The best medical and dental loans for retired senior citizens do not charge interest or origination fees. When Medicare or Medicaid honors claims for procedures they frequently deny, you avoid having to borrow money against future Social Security checks.
A well-supported letter of medical necessity for these costly procedures turns an unaffordable expense into a free service.
Worst Loans for Seniors
The worst personal loans for senior citizens on Social Security retirement income are those you have to repay with interest and origination fees – especially those that jeopardize your eligibility for benefits.
Please be careful when borrowing money on a fixed income. Take out loans for emergencies only when you do not have the luxury of time to find one of the more favorable alternatives noted above.
SSI Loans
Any loan for senior citizens on Social Security retirement income is especially dangerous and ill-advised for those dual-eligible for Supplemental Security Income (SSI). You could jeopardize your future benefits if approved by violating the “limited resources” qualification.
Loans for people on SSI disability put your benefits at risk if your countable resources exceed $2,000 for an individual or $3,000 for a couple. For instance, if a widow keeps $1,500 in cash in a bank account and the lender deposits $1,000 in loan proceeds, she exceeds the limit.
In this example, she is ineligible to receive the average monthly SSI stipend of about $600 until she spends at least $500 of the loan proceeds.
Installment Loans
Installment loans for retired senior citizens feature fixed monthly payments over a predefined interval, including interest charges and origination fees. The amount owed each period is smaller because you do not repay the obligation all at once, but it could cost more over time as the interest accrues.
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Grab your checkbook before completing the online form to input your bank account and routing number. Also, respond to specific questions as follows.
| Question | Response |
|---|---|
| Income Source | Benefits or Alimony |
| Length of Employment | Retired or Unemployed |
| How Often Your Receive Other Income | Monthly |
| Date of Next Payday | Deposit Date of Social Security Check |
Payday Loans
Payday loans for retired seniors provide a cash advance on your next monthly check and include origination fees but not interest charges. You owe the entire balance in full when your next Social Security check is deposited into your bank account.
Beware the dangers of payday loans before funding an emergency expense. Many older people fail to pay the balance in full at the end of the month, incurring a second origination fee, ranging from $10 to $30 for every $100 still outstanding.
In other words, you could more than double the amount owed if you roll over the cash advance four times (4 X 30% = 120%). Payday loan debt consolidation is next to impossible with a fixed income.
Seniors should avoid this cash advance trap at all costs!
