Best Personal Loans for Seniors
April 2024
It's a common misconception that older Americans can't get personal loans. Applying for a personal loan when you're retired is not much different than for other working adults. Discover which lenders have the best personal loans for seniors.
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Even if you have worked hard to plan for your retirement, financial surprises can happen. Maybe you are facing unexpected medical expenses or find your Social Security benefits don't cover all your living expenses. Whatever the reason, there are times retirees could benefit from a personal loan.
Unfortunately, not all lenders consider borrowers who are retired. However, there are still options available. This is SuperMoney's list of the best personal loans for retirees.
Methodology
SuperMoney's list of the best personal loans for pensioners is based on the qualitative recommendations of our community members and the quantitative recommendations of our ranking algorithms. We reviewed dozens of lenders and considered features, such as interest rates, fees, eligibility requirements, and loan amounts.
Common Questions About Personal Loans for Seniors
What is a personal loan for pensioners?
Personal loans for pensioners are usually just regular unsecured loans that are available to borrowers who are retired. An unsecured loan is a loan that does not require a guarantee or security.
Can you get a personal loan if you're retired?
Your age doesn't have to be a drawback when applying for a personal loan. Loan providers consider senior applicants based on the same factors they use for all borrowers: income, debts, and credit history. As long as you have a steady source of income and you can afford to make payments, you can probably qualify for a loan.
How do personal loans for pensioners work?
Personal loans for seniors work pretty much the same as any other unsecured loan. They are a type of installment loan, which means you borrow a fixed amount of money and pay it back with interest in monthly payments. Loan terms usually range from 12 to 72 months, but it is possible to get longer and shorter terms.
What credit score do you need to qualify for a personal loan for seniors?
Eligibility requirements vary by lender. As long as you have a steady source of income you can apply for a personal loan even if you have poor credit, but the rates will be high and you may only qualify for small amounts. Seniors with good credit and high incomes get the best terms and rates.
If your credit score is less than stellar, you may consider a secured loan. Secured loans are guaranteed by the value of an asset, such as a car or a home. One of the advantages of a secured loan is the interest rates are usually lower. However, if you default on the loan, the lender can force you to sell the security to pay off the balance.
I'm a pensioner looking for a personal loan, what should I do first?
It's a good idea to review your credit report before you begin to apply. This gives you a chance to dispute any errors in your credit report and get an idea of what a lender sees when they look at your credit history. You can check your credit report as often as you need to without affecting your credit scores.
Can a senior citizen apply for top-rated personal loans without a traditional source of income?
Just because you don't have a salary doesn't mean you don't have a source of income. Many lenders will accept your retirement savings, pension, or Social Security money as a perfectly-valid source of income.
Will it take longer for my loan application to process because I'm retired?
Once your lender has what they need, processing the loan should take the same time as for any other borrower.
When you've identified your intended loan providers, find out how long it will take for them to approve your loan. SuperMoney's loan comparison tools allow you to filter lenders according to how long it takes for them to process funds. If you have your documents and information on hand, filling out the application is quick. With direct online lenders, it could take as little as 15 minutes.
Depending on the lender, it may take a day or two (online lenders) to a few weeks (banks and credit unions) before the funds arrive in your account.
As a retiree, how can I compare personal loan terms without damaging my credit score?
SuperMoney's loan offer engine allows you to compare multiple lenders and check your rates without hurting your credit score. The list of best pensioner loans above is also a great place to start.
About the Author
SuperMoney
SuperMoney is the most comprehensive financial services comparison site around. We have published hundreds of personal finance articles and provide detailed reviews on thousands of financial products and services. Our unbiased advice and free comparison tools help consumers make smart financial decisions based on hard data, not marketing gimmicks.
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