Borrowing Money on SSI or SSDI Without Losing Benefits
Introduction: Can You Take Out a Loan While on Disability?
If you receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI), you might be wondering:
💰 Can I get a personal loan while on disability?
💰 Does borrowing money affect my SSI or SSDI benefits?
💰 What are the best loan options for disability recipients?
The good news is:
✔ Yes, you can get a personal loan while on disability.
✔ SSDI recipients can borrow money without any impact on benefits.
✔ SSI recipients must be careful—loans can affect eligibility if not handled correctly.
However, not all loans are equal, and choosing the wrong type of loan could create financial issues.
In this guide, we’ll cover:
✅ How loans affect SSI vs. SSDI benefits
✅ Best personal loan options for disability recipients
✅ Can you borrow money without losing SSI?
✅ What to do if you need emergency cash
✅ How Purple helps track loans and disability benefits
Let’s dive in!
Does Borrowing Money Affect Your SSI or SSDI Benefits?
✔ SSDI Recipients – Loans Do NOT Affect Benefits
SSDI has no asset limits, so you can take out a loan without affecting your benefits.
You do NOT need to report a loan to SSA if you only receive SSDI.
💡 However, taking on too much debt could make it harder to manage your expenses.
⚠️ SSI Recipients – Be Careful with Loans!
SSI has a $2,000 asset limit ($3,000 for couples), so a loan could put you over the limit if not spent immediately.
SSA does NOT count a loan as income, but unused loan money sitting in your bank account could affect SSI eligibility.
💡 If you receive SSI, spend loan funds quickly to avoid losing benefits.
Best Personal Loan Options for SSI & SSDI Recipients
1. Traditional Personal Loans (Best for SSDI Recipients)
✔ Borrow from banks, credit unions, or online lenders.
✔ Fixed monthly payments over 12 to 60 months.
✔ Best for SSDI recipients since there are no asset restrictions.
💡 Recommended lenders:
✅ SoFi Personal Loans – No fees, good rates.
✅ Upstart – Accepts lower credit scores.
✅ Credit Union Loans – Better rates than banks.
2. Secured Loans (Best for Lower Credit Scores)
✔ Requires collateral (like a car, savings, or property).
✔ Easier to qualify for than unsecured loans.
✔ Best for SSDI recipients—SSI recipients must spend funds quickly.
💡 Examples: Car title loans, savings-secured loans.
3. Credit Builder Loans (Best for Improving Credit)
✔ 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.
💡 Best Options:
✅ Self Credit Builder Loan – Reports to credit bureaus.
✅ CreditStrong – No credit check required.
4. Payday & No Credit Check Loans (Avoid If Possible!)
❌ Extremely high interest rates (200-400% APR).
❌ Short repayment terms make it hard to pay back.
❌ Can lead to a debt cycle—not recommended for disability recipients.
💡 If you’re in an emergency, look for alternative assistance programs first!
Can You Borrow Money Without Losing SSI Benefits?
Yes, but SSI recipients must handle loan money carefully to avoid benefit suspension.
How to Take Out a Loan Without Losing SSI:
✔ Spend the money quickly – If loan funds stay in your bank account, SSA could count it as a resource.
✔ Use an ABLE account – If eligible, deposit loan money into an ABLE account to protect your SSI benefits.
✔ Avoid borrowing more than needed – Only take what you need and can repay.
💡 Loans are NOT counted as income for SSI, but extra cash in your account can put you over the $2,000 limit.
What If You Need Emergency Cash on Disability?
If you need fast cash, consider these safer alternatives to payday loans:
1. Check If You Qualify for Emergency SSI Payments
✔ If your SSI payment is delayed, SSA may issue an emergency advance payment.
✔ Call 1-800-772-1213 or visit your local SSA office.
2. Apply for Emergency Assistance Programs
✔ Local charities, churches, and nonprofits offer one-time cash grants.
3. Request a Loan from Family or Friends
✔ Personal loans from friends or family are usually interest-free.
✔ SSA does NOT count personal loans against SSI benefits if repaid properly.
💡 If a family member loans you money, create a written loan agreement to avoid SSA treating it as a gift.
How to Avoid Loan Scams Targeting Disability Recipients
⚠️ Be careful when borrowing money—scammers often target people on disability benefits!
Signs of a Loan Scam:
❌ Lender guarantees approval (no legitimate lender does this).
❌ They ask for upfront fees before approving a loan.
❌ They pressure you to act quickly.
💡 Stick to reputable banks, credit unions, and lenders with positive reviews.
How Purple Helps Manage Loans & Disability Benefits
💜 Track Your SSI & SSDI Payments – Know exactly when your disability check arrives.
💜 Monitor Loan Payments – Avoid late fees and credit score damage.
💜 Set Spending Alerts – Prevent exceeding the $2,000 SSI asset limit.
💜 Find Safer Borrowing Options – Avoid high-interest payday loans.
💡 With Purple, you can manage your finances while keeping your disability benefits secure!
FAQs About Getting a Loan on Disability
Can I Get a Loan While Receiving SSI?
Yes, but loan money must be spent quickly to avoid going over the $2,000 asset limit.
Can SSDI Recipients Take Out a Loan?
Yes! There are no asset limits for SSDI, so you can borrow money freely.
Will a Personal Loan Affect My Disability Benefits?
✔ SSDI: No impact at all.
⚠️ SSI: If loan money stays in your account too long, SSA may count it as an asset.
What Type of Loan Is Best If I’m on Disability?
✔ For SSDI: Personal or secured loans.
✔ For SSI: Small, short-term loans that you can spend quickly.
Conclusion: You CAN Get a Loan While on Disability—Here’s How to Do It Wisely
✅ SSDI recipients can take out loans without affecting benefits.
✅ SSI recipients must handle loan money carefully to stay under the $2,000 asset limit.
✅ Avoid payday loans—look for safer lending options like credit unions.
✅ Emergency cash assistance may be available before borrowing.
✅ Use Purple to track your finances and protect your disability benefits!
💜 Sign Up for Purple to Manage Your Disability Benefits & Loans!