Your lifestyle changes as you age and so do your finances. At some moment you might discover that getting a loan is not easy anymore, as it was when you were successfully employed. There are still providers for you to borrow from as a retiree, but the options are more limited and costs might be higher.
What Loan Options Do I Have As a Retiree?
You might not be employed anymore, however, if you have a pension, a retirement fund or getting Social Security benefits, there are multiple ways for you to get extra cash. Below is the list of the most common types of loans for retired clients, but keep in mind, that it’s not exhaustive.
- Secured or unsecured personal loans. How much you can borrow depends on your monthly income and other qualifications.
- Personal lines of credit, where you can draw an amount you need at any given time. It comes in very handy when you don’t know the sum you’ll be needing ahead of time.
- Peer-to-peer loans that are funded not by banks or institutions, but rather by investors. They took longer to be processed but might be easier to qualify for.
- Debt consolidation loans are a good choice for those who have debt left from before they retired.
- Student loan refinancing is also a good choice for those with left-over debt from before the retirement. If it’s your case, contact a loan forgiveness program.
- In case you need extra money to get a car, opt for a car loan. The rates and terms on these vary, so be sure to check a couple of providers.
- If a loan you need is for buying a new home, look into a mortgage or a bridge loan. It’s the best solution for those striving to downsize or get a property that suits their needs better.
- In contrast to the previous option, you can consider a reverse mortgage that means you can get a line of credit or a loan against the equity of your home.
- You can also use your home equity to fund a loan for many different purposes. It is a secured type of loan, which means you’ll be safe from hicked interest rates.
- If your credit history is not too good, look out for short-term or bad credit loans. These might not be the safest option, with usually high rates and lots of scams, so make sure to choose a reliable provider like the one offering Bad Credit Loans in North Carolina.
What Loan Options Do I Have As a Veteran?
If you’ve retired from the military or even just served your country once, you might have some advantage when it comes to financing. There are lenders specifically for veterans, like the Navy Federal Credit Union or USAA. You can also sometimes count on discounts or better rates from other lenders, or get a personal loan for veterans. By the way, the latter is available to military spouses as well. If you need money don’t hesitate to contact your local VA or Department of Veterans’ Affairs and inquire about the options you have.
Will Lenders Consider Me?
If you have a reliable source of income like the assets at your disposal, a part-time job or benefits, you’ll most likely qualify for a loan. There are the following types of borrowers that are considered by lenders:
- Retirees that earn income from investments. Those can be properties that are rented out, savings accounts, etc. To apply as a self-funded retiree you’ve got to prove that you have the said assets and income, to ensure your lender you’ll afford the loan.
- Retirees that receive Social Security benefits or pension. As these are also counted as an income, you’ll be able to qualify for a loan, though your choice of providers might be more limited.
- Partially employed retirees also can borrow without much trouble. The only thing is that you’ll have to meet the minimum income criteria to qualify for a loan.
- Non-residential seniors too have a small chance of getting a loan, though, much fewer lenders are willing to work with those, who are not a US citizen.
How Do I Apply retired loan?
While applying for a loan online, make sure to gather all the needed documentation beforehand. This way the process will be much quicker and easier. The lender will most likely expect you to provide:
- your full name;
- the date of birth;
- Social Security number;/
- a government-issued ID;
- phone number;
- your postal and email addresses;
- the proof of your residence;
- the proof of your income, whichever the source it may be;
- the information about your debt and liabilities.
Each lender might have their own requirements so make sure to get to know what exactly will you need by carefully reading the lender’s website or getting in touch with them by phone or email. Some might want to see your credit score. If it’s not too good, you might want to opt for Bad Credit Loans in California. Take your time and choose the best lender possible, with the rates, eligibility criteria and terms that are comfortable for you, and good feedback from other clients.
Many of us dream of retirement – the period of life you can have time to do whatever you’d like. However, sometimes more opportunities only come with extra expenses. Don’t despair as there are options available to you when you need a loan. Just make sure to find that works best for you and is a safe choice.