Disability loans are generally less available. Pensioners are in a worse position than pensioners – they receive a lower benefit, which translates into lower creditworthiness. How much money do pensioners borrow and what do they spend it on? Who is the most willing to grant them loans?
How many pensioners borrow money?
Reports on the debt of Poles are regularly appearing on the market. For example, the Credit Information Bureau informs that seniors are active on the credit market – they constitute 18% of all borrowers. In total, they are indebted for approximately $ 25.7 billion. How many of them are pensioners? This is not known, but it is certain that they are in a worse situation than retirees – lenders lend them less willingly.
People receiving disability pensions receive relatively low benefits – from March 1, 2018, the lowest social pension is $ 840. For this reason, it is harder for them to obtain a loan, even at a small amount. Most banks will reject the pensioner’s application for a loan because of the amount of benefit he receives. On the other hand, it should be remembered that a pension does not have to be the only source of income for a senior – despite receiving a benefit, he may still be active on the professional market. The law does not prohibit pensioners from making extra money. The only thing they must remember is that when they earn more than 70% of the average monthly salary for the quarter announced by the Central Statistical Office, they will lose their pension entitlement.
What do pensioners usually borrow for?
Seniors borrow not only for their own needs, related to e.g. treatment. Very often, they need extra money to support their immediate family. Many pensioners cannot refuse grandchildren dreaming of new electronic equipment. There are also seniors who are borrowing to finance family celebrations.
Both retirees and pensioners often sign credit agreements when purchasing more expensive household appliances or electronics. Some are in debt to finance the renovation of an apartment or house. There are also seniors who help their family realize their dreams about a car or a foreign holiday.
Loan for pensioners – who will make such a loan available?
Pensioners who do not work additionally may have trouble getting a loan from a bank. An obstacle can be both low income and the fact that the benefit was granted to them only for a certain period of time (on time). One cannot forget about age either – most banks set an upper age limit for potential borrowers.
An alternative to banks are loan companies that specialize in lending small amounts. There, the pensioner has a better chance of receiving money – he only declares the amount of income when submitting the application. The flexibility of loan companies is a great help from the point of view of those seniors who earn the lowest income. An additional plus is the fact that most companies do not impose age restrictions – money can apply for a person aged e.g. 85 who has no chance of a loan at the bank.
A good credit history makes it easy to get a loan
Pensioners who cannot earn extra money due to health reasons still have a chance to get a loan. Much depends on whether they have paid their debts honestly so far. A good credit history is a very valuable tip for lenders – lending money to a person who has always paid their debts on time beforehand is less risky.
In the case of banks – it is necessary to pay off liabilities exemplary. The client may be refused a loan, even if he has only been late in the past paying the installment once. It is also required to document your income, which must have a large “buffer” between the client’s monthly expenses, so that the money is enough in installments. In non-bank companies that provide quick payday loans and installment loans for pensioners, the conditions are not that demanding. Usually, it is enough to complete the application online and wait 15 minutes for the decision. Most companies also accept clients with a weaker credit history and low income.
Is a loan for a pensioner a good solution?
To answer this question correctly, it is necessary to understand the case. It is true that a large proportion of people who reach for non-bank loans or loans at the bank for consumer purposes. In other words, they don’t necessarily need the money. The consumer loan is, for example, a new TV set, car purchase, luxury trip abroad or a lavish occasional party. Very often these are expenses without which one can do without. Of course, for the money saved you can afford this expense only at a later date. Thanks to this, you can save from over a dozen to even several dozen percent. But there are also things you can’t do without, and they are also a common purpose of the loan. It could be a roof renovation that has started to leak. Most households have no savings, so putting out a few thousand dollars from your pocket can be a problem. In such cases, loans for pensioners are a common option.