If you’ve successfully made the transition from active employment to retirement, life should be smooth sailing and enjoyed. At times however, you may still find yourself facing unexpected expenses like medical bills, unexpected repairs or bills. Without the ability to work overtime or asking your employer for an advance on your salary, you may consider getting a loan for pensioners to cover your urgent cash need. But is it even possible for retired people to get a loan?

Understanding Loans for Pensioners

Just because you’ve retired and don’t have traditional income through a regular job anymore doesn’t mean that you can’t qualify for a loan. In fact, many lenders offer retiree loans! A retiree loan, or loan for pensioners, isn’t necessarily a specific type of loan – it can be one of many loan options that’s available to retired people, as long as they meet the lender’s underwriting criteria. So whether it’s a personal loan, peer-to-peer loan, car loan, mortgage, auto equity loan or car title loan, any credit product can be a loan available to retirees if the lender accepts retirement or pension benefits as income!

In order to qualify for one of the aforementioned products, you’ll need to meet the lender’s credit requirements, which may include a certain credit score, collateral such as a house or vehicle, and document requirements, which typically include some documents that allow for your income to be verified.

How Pension Or Retirement Income Can Affect Loan Approval

If your primary or only source of income is from retirement benefits such as Social Security or a private pension, you may be wondering how your income source could impact your ability to get approved for a loan. As long as you are working with a lender that accepts retirement income, the fact that you’re not employed anymore should not have a negative impact on loan eligibility. Rather, some of the following items could be considered when you’re applying for a loan for retired people:

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  • Income level: with retirement, many consumers aren’t able to maintain the same level of monthly income they enjoyed while being actively employed. Having to work on a smaller budget can be challenging, and can also impact the potential for loan approval. That’s because many lenders use income-based ratios such as a payment-to-income (PTI) maximum, or debt-to-income (DTI) maximum when establishing their approval guidelines. While those lenders don’t care about the source of your income, the absolute amount of your income is of high importance when looking to get approved for a loan.
  • Advantageous treatment of non-taxable income: if some or all of your retirement income is exempted from income taxes, the lender may “gross up” the income declared on your loan application prior to decisioning it. Grossing up simply means that the lender applies some basic math to calculate what the equivalent gross income from employment would be in order to have a net income that matches your stated retirement income.
  • Income stability: if your retirement income is from guaranteed entitlement programs such as Social Security, your income is considered very safe and stable. A stable income is usually considered a positive factor for a loan application and can even enhance your chance of getting approved for a loan – even for retired people with bad credit!

Alternatives To Consider Before Taking Out a Loan For Pensioners

Before applying for a loan, it can be worthwhile to evaluate a few alternatives to using a credit product to solve your cash needs. Some of the alternatives you may want to consider include:

  • Government assistance programs: check if you qualify for government assistance programs that may provide financial relief. This could include entitlements like Supplemental Social Security Income, nutrition assistance programs or housing programs.
  • Tapping into your savings: if you have built a bit of a nest egg prior to retiring, you may be able to draw down some of your funds. Or, if you prefer not touching your savings, you may even be able to borrow against them with a 401K loan or similar.
  • Re-entering the workforce: if you’ve just retired or event if it’s been a few months or years, it’s possible to consider a brief period or “un-retirement”. Un-retiring simply means choosing to return to work, which can have both financial benefits and be emotionally rewarding.

Be sure to consider potential tax implications of any of the options you consider. For example, improper access to retirement savings and returning to work after retiring can have unintended tax consequences!

Requirements for Retirees to Get a Title Loan Serviced by LoanMart

With title loans serviced by LoanMart, there are no special requirements for retirees or pensioners beyond the standard title loan qualification requirements. In order to qualify for an auto title loan for retired people, you need to:1

  • Own a car or truck with sufficient equity
  • Be able to prove your retirement or pension income
  • Be able to prove your identity
  • Meet the title loan application credit requirements

When prompted about the amount and source of your income, simply enter the applicable amount and income source online, or let your loan officer know! With that, you are well on your way to complete the title loan application for the cash you need.1

How to Apply?

The application for a title loan on retirement or pension income is fast and easy with title loans serviced by LoanMart. An application can be started online, or you can also call one of our friendly loan officers at 1800LoanMart (800-562-6627). Our representatives are standing by to assist you. Upon approval, please be ready to provide a few documents such as proof of residence, proof of your retirement or pension income, a valid government-issued photo ID and vehicle pictures.1

Final Thoughts on Loans For Retired People

If live throws you a curve ball in retirement, loan options are available that may help you bridge a shortfall in your budget. It’s important to consider alternatives to getting a loan for pensioners, in order to make sure you make the best financial decision for yourself.

If you are looking for a loan for retired people with bad credit, an auto title loan serviced by LoanMart can be a viable option to consider.