Best Credit Options and How to Improve Your Score
Introduction: Can You Get Credit While on Disability?
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you may be wondering:
💳 Can I qualify for a credit line while on disability benefits?
💳 Does SSI or SSDI count as income for credit applications?
💳 What are the best credit options for people on disability?
The good news is:
✔ Yes, you can get a credit card or credit line while on SSI or SSDI.
✔ SSI & SSDI can be used as income for credit applications.
✔ There are secured and unsecured credit options available.
However, getting approved depends on your credit score, income level, and repayment history.
In this guide, we’ll cover:
✅ How lenders view SSI & SSDI as income
✅ Best credit card and credit line options for disability recipients
✅ How to build or improve credit while on disability
✅ Can credit affect your SSI benefits?
✅ How Purple helps manage credit and disability benefits
Let’s get started!
Does SSI or SSDI Count as Income for Credit Applications?
Yes! Credit card issuers and lenders accept disability benefits as a form of income.
When you apply for a credit card or credit line, lenders look at:
✔ Your total monthly income (including SSI, SSDI, or other benefits).
✔ Your credit score and history.
✔ Your ability to repay debt (Debt-to-Income Ratio).
💡 Even if you don’t work, you can list your disability benefits as income when applying for credit.
However:
❌ SSI is considered "unearned income" and some lenders may not count it as qualifying income.
✔ SSDI is more widely accepted since it is a long-term disability benefit.
Best Credit Card and Credit Line Options for People on Disability
There are two main types of credit cards for people on disability:
1. Secured Credit Cards (Best for Lower Credit Scores)
✔ Requires a refundable security deposit (usually $200–$500).
✔ Helps build or rebuild credit over time.
✔ Best for those with no credit or a low credit score.
💡 Top Secured Credit Cards:
✅ Capital One Platinum Secured – Low deposit, no annual fee.
✅ Discover It Secured – Earns cash back rewards while building credit.
✅ Chime Credit Builder – No interest or fees, reports to credit bureaus.
2. Unsecured Credit Cards (No Deposit Required, But Harder to Get)
✔ No security deposit required.
✔ Requires a higher credit score (580+ recommended).
✔ Higher credit limits, but may have fees or higher interest rates.
💡 Top Unsecured Credit Cards for People on Disability:
✅ Capital One QuicksilverOne – 1.5% cash back, low annual fee.
✅ Petal 2 Visa Credit Card – No fees, good for building credit.
✅ Citi Double Cash Card – 2% cash back, but requires good credit.
3. Credit Builder Loans (Best for No Credit History)
✔ Loan funds are held in a savings account while you make payments.
✔ Great for building credit with no upfront money needed.
✔ Once the loan is paid off, you get the money back.
💡 Top Credit Builder Loan Options:
✅ Self Credit Builder Loan – Reports to all credit bureaus.
✅ CreditStrong – No credit check required.
4. Retail Store & Gas Cards (Easier to Get, But High Interest Rates)
✔ Store credit cards (Target, Walmart, Best Buy) are easier to get approved for.
✔ Useful for everyday purchases like groceries, gas, and essentials.
✔ Higher interest rates, so pay off balances in full each month.
💡 Best for: If you’re new to credit or rebuilding your score.
How to Build or Improve Credit While on Disability
If you receive SSI or SSDI and want to increase your credit score, follow these tips:
✔ Use a secured credit card – Helps establish a credit history.
✔ Make payments on time – Late payments hurt your score.
✔ Keep your credit utilization low – Use less than 30% of your credit limit.
✔ Avoid too many credit applications – Multiple inquiries can lower your score.
✔ Check your credit report regularly – Get a free report at AnnualCreditReport.com.
💡 Building credit takes time—stay consistent with on-time payments to improve your score.
Can a Credit Line Affect My SSI or SSDI Benefits?
✔ SSDI Recipients – No Impact on Benefits
SSDI does not have asset limits, so having a credit card or credit line will not affect your benefits.
⚠️ SSI Recipients – Be Cautious with Large Balances
SSI has a $2,000 asset limit ($3,000 for couples), so if you take a cash advance or personal loan and don’t spend the money immediately, SSA may count it as a resource.
Credit cards themselves are not counted as assets, but large cash advances sitting in your bank account could impact your SSI eligibility.
💡 If you receive SSI, avoid carrying large cash balances to stay under the $2,000 limit.
How Purple Helps Manage Credit and Disability Benefits
💜 Track Your SSI & SSDI Payments – Know when your disability checks arrive.
💜 Monitor Your Credit Utilization – Stay below 30% usage for a better score.
💜 Set Payment Reminders – Avoid late fees and protect your credit.
💜 Find the Best Credit Card for Your Needs – Compare secured and unsecured options.
💡 With Purple, you can build credit while keeping your disability benefits secure!
FAQs About Getting a Credit Line on Disability
Can I Get a Credit Card with Only SSI as Income?
✔ Yes, but some lenders may not count SSI as qualifying income—a secured credit card is usually the best option.
Can I Get a Credit Card with Only SSDI as Income?
✔ Yes! SSDI is considered stable income, making approval easier.
Will a Credit Line Affect My SSI Payments?
⚠️ Not directly, but large cash advances sitting in your bank account could push you over the $2,000 SSI limit.
What’s the Best Credit Card for Someone on Disability?
✔ For No Credit: Secured credit cards (Capital One, Discover It Secured).
✔ For Fair Credit: Petal 2 Visa or Capital One QuicksilverOne.
Can I Get a Credit Card with No Credit History?
✔ Yes! Secured credit cards and credit builder loans are designed for people with no credit.
Conclusion: Yes, You Can Get Credit While on Disability—Here’s How to Do It Wisely
✅ SSI and SSDI recipients can apply for credit lines.
✅ SSDI counts as stable income for credit applications.
✅ A secured credit card is the best option for people with low or no credit.
✅ Using credit responsibly helps build your credit score.
✅ SSI recipients should avoid carrying large balances to stay under the asset limit.
✅ Use Purple to track credit usage and manage your disability benefits!
💜 Sign Up for Purple to Manage Your Credit & Disability Benefits Easily!