Compare retiree loans in 2019

Limited income should not detain you after retirement.

Limited income should not detain you after retirement.

As you move through your older years, your finances change with your lifestyle. When this happens, you may find that getting a loan is not as easy as it was when you earned income from a job. However, there are some lenders who consider you a personal loan as a retiree. But be aware that some borrowings may have costs and that the impact of late borrowing could have on your retirement funds.

Our first choice: LendersSki Personal Loan

Our first choice: LendingClub Personal Loan

  • Min. Required credit score: 640
  • Min. Amount of the loan: 1000 €
  • Max. Amount of the loan: 40 000 €
  • APR:
    6.95% to 35.89%
  • Requirements: US citizen or permanent resident, verifiable bank account, stable source of income, 18 years of age and over.
  • No prepayment penalties
  • Flexible loan terms
  • Quick and easy application

Our first choice: LendersSki Personal Loan

Our first choice: LendingClub Personal Loan

A private lender offering fair rates based on your credit score.

  • Min. Required credit score: 640
  • Min. Amount of the loan: 1000 €
  • Max. Amount of the loan: 40 000 €
  • APR:
  • 6.95% to 35.89%
  • Requirements: US citizen or permanent resident, verifiable bank account, stable source of income, 18 years of age and over.

10 loans available for retirees

10 loans available for retirees

Retirement is not the end of your borrowing experience. Even when you no longer have income from a job, you can still claim a number of loans, provided you qualify for Social Security benefits, a pension or a retirement fund. These are the most common loans available to retirees, but if you have an idea in mind, do not hesitate to contact a lender to discuss the eligibility criteria.

  1. Personal loans. A personal loan can be guaranteed or not. Some lenders offer up to 100,000 euros, but you may not have access to this amount if you do not have the cash to keep it and an excellent one, especially when you rely on a fixed monthly income.
  2. Personal lines of credit. A line of credit is similar to a personal loan. But instead of receiving a lump sum, you will be able to draw from your line at any time. This can be especially helpful when you do not know exactly how much you need in advance.
  3. Loans between individuals. Inter-peer loans are funded by investors rather than banks or institutional lenders. Although their financing takes longer than normal loans, some may offer people on fixed income a loan that they would otherwise not be able to claim.
  4. Debt consolidation loans. If you have previous debts to your retirees and want to combine them into one easy monthly payment, a debt consolidation loan could be an ideal option to manage your finances.
  5. Student loan refinancing. If you still have a federal student loan and can not make full payment, you may lose some of your social security payments. Consider refinancing your student loans or signing up for a loan remission program.
  6. Car loans. It’s not because you’re retired that you do not need to move. An auto loan can help you get a decent vehicle, and many offer competitive rates that keep your monthly payments within budget.
  7. Mortgages With the lengthening of the life span, people have reached the age of 80 or 90 years. Banks and other lenders can not discriminate according to their age. Therefore, if you want to buy a new home to reduce the size of your home or simplify your life as you get older, consider a mortgage.
  8. Reverse mortgages. Reverse mortgages give you a line of credit, a steady stream of income, or a lump sum payment by borrowing on your home equity. While reverse mortgages have traditionally been considered high risk, reverse mortgages are being used more and more.
  9. Loans on net worth. Similarly, a home equity loan or line of credit uses the equity of your home to finance a loan that can be used for just about anything. If you need to cover a large expense after retirement, a home equity loan is a secure option that can prevent you from paying high interest rates.
  10. Short-term loan. While this is not the safest option when you have a fixed income, a loan for people with bad credit can help you. Just be sure to check the interest rates and laws in your state – not all short-term loan options are available in each state.

Personal loans that you may be able to claim as a retiree

Personal loans that you may be able to claim as a retiree

Whether you are retired from the military or have simply served the country, you may have loan options that you do not know. Some lenders, such as the Marine Federal Credit Union and USAA, meet the needs of veterans. Other lenders may have special offers or lower interest rates if you provide proof of your service. You could benefit from
a personal loan for veterans and, in many cases, spouses will also be eligible. Your best option will be to contact your local VA or go to the Department of Veterans Affairs to find out what kind of options you have.

What types of retirement situations are considered by lenders?

What types of retirement situations are considered by lenders?

Lenders consider a lot of retirement situations when you apply. As long as you have a stable source of income – be it assets, part-time employment or retirement – you may be eligible for a loan.

  • Self-financed retirees. If you earn income from investments such as rental properties or your retirement savings account, you are considered a self-funded retiree. When applying for a loan, make sure you have the most evidence of your assets and income to show your lender that you will be able to manage repayments.
  • Retired retirees or social security. If you receive a pension in the form of income, you may still be eligible for a personal loan. Make sure to check the eligibility criteria of the lender, as not all will be able to accept retirement or social security benefits.
  • Retirees who work part time. If you have a steady job, even if it is only part-time work, the lenders will take into account this income. However, lenders may still have a minimum income requirement that you must meet before submitting your application.
  • Non-resident retirees. The majority of lenders require you to be a US citizen or permanent resident, but some lenders consider non-residents to be loans, even if you are an elderly person.

Linda and Grant, a retired married couple

Imagine this scenario: As a couple, Linda and Grant receive € 1,270 in retirement benefits twice a month. They have paid for their home and have a small source of additional income from a rented investment property. Although their payments are sufficient to support their lifestyle, they can not afford to make larger purchases. When their car stopped working, they considered a personal loan to buy a replacement vehicle.

Option 1: They examined a car loan to buy a vehicle. Since a car loan is a secured loan, they discovered that they could get reasonable interest rates.

Option 2: Linda and Grant have also studied an unsecured loan option so that their car can not be withdrawn in case of late payment. They looked at loans between individuals, which may also have affordable interest rates.

In the end, Linda and Grant opted for a loan between peers because they felt more comfortable borrowing money without collateral.

What will I need?

What will I need?

To facilitate the application process, especially if you are using an online lender, you need to gather your documentation before you start the application. You will need to provide your lender with your

  • Personal informations. Your name, date of birth, social security number and contact information are usually required for loan applications.
  • Financial information. Include all sources of income and provide evidence. You will also need to provide details of your debts and debts.

If the eligibility criteria are not clear, contact the lender before submitting your application. For example, investment income may not be consistent, which means that you can not always meet the minimum income requirement. Although a lender can not guarantee the approval, it can clarify certain points and provide you with additional information that will help you complete your application. And to give you the best chance of being approved, make sure you have all your information before you apply.

Bottom line

Bottom line

Retirement is a long time of life to be hoped for. But when you need a loan – for whatever reason – it can be frustrating to find one that works with you, especially if you have a fixed income. Keep your options open and compare your choices as you navigate in recent years.

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