12 Loans for Seniors with Bad Credit

12 Loans for Seniors with Bad Credit
GUIDE
Eric Bank
By: Eric Bank
Posted: March 20, 2020
Advertiser Disclosure

If you’re a retired senior with bad credit and you’re looking for a loan, you may believe you already have two strikes against you — no salary and a low credit score. However, we identify in this article 12 loans for seniors with bad credit, whether they are retired or still working.

These are providers of personal loans, home loans, or car loans, all designed for consumers of any age with bad credit. In other words, dear fellow seniors, we have many viable options when we need a loan.

Personal Loans | Home Loans | Auto Loans

Personal Loans for Seniors with Bad Credit

While not providing loans themselves, these six companies arrange loans for bad-credit consumers from their networks of direct lenders. They all require that you have a monthly source of income, such as a salary or Social Security benefits.

As long as applicants are 18 or older, age is not a barrier to loan approval.

  • Short-term loans up to $2,500
  • Online marketplace of lenders
  • Funds available in as few as 24 hours
  • Simple online form takes less than 5 minutes
  • Trusted by more than 2,000,000 customers
  • Not available in NY or CT
  • Click here for official site, terms, and details.
★★★★★

4.8

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
Up to $2,500 Varies Varies

See representative example

MoneyMutual is a lender-matching service that can arrange for seniors to get personal loans of up to $2,500. To be approved, you need a steady monthly income of at least $800.

This is less than the average Social Security monthly benefit (in 2019) of $1,471, meaning most recipients will have enough income to prequalify for a loan arranged by MoneyMutual. If a direct lender approves your loan, you can expect the money to appear in your checking account as quickly as the next business day.

   
★★★★★

4.7

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$500 to $10,000 5.99% - 35.99% 3 to 72 Months

See representative example

CashUSA.com can find you a lender for loans of $500 or more and with repayment periods from three to 72 months. To qualify, seniors must be U.S. citizens and earn an income of at least $1,000 per month, which is less than the average monthly Social Security benefit.

The direct lenders recommended by CashUSA.com can approve the loan in a few minutes and fund it the next business day.

CreditLoan helps seniors find a personal loan from $250 to $5,000, even when applicants have bad credit. To qualify, you must have a bank account to accept the loan proceeds.

The direct lender recommended by CreditLoan sets the interest rate and length of its offered loan. The company has helped more than 750,000 borrowers obtain loans from its lender network.

Bad Credit Loans has been facilitating personal loans since 1998. To qualify, you must be a U.S. citizen with regular income, a checking account, and a valid email address.

Direct lenders on the Bad Credit Loans network offer borrowers loans ranging from $500 to $5,000, with a repayment period of three to 60 months. As you can tell from its name, this lending company serves consumers with less-than-perfect credit.

You can borrow up to $35,000 for as long as 72 months from a lender on the PersonalLoans.com network. To be eligible, you must be a U.S. citizen or resident with a bank account and regular monthly income.

Unlike some of its competitors, PersonalLoans.com operates in all 50 states. If approved for a loan, the proceeds will be deposited into your checking account as soon as one business day.

  • Short-term loan of $100 to $1,000
  • Bad credit is welcomed
  • Large network of lenders
  • Loan decision as fast as a few minutes; funding as soon as next business day
  • Required: Income of $1000+/month and at least 90 days on job
  • Click here for official site, terms, and details.
             
★★★★

3.9

Overall Rating

Loan Amount Interest Rate Loan Term Loan Example
$100 to $1,000 200% - 2,290% Varies

See representative example

CashAdvance.com can facilitate a short-term loan from $100 to $999. To qualify, you must be a U.S. citizen with employment income of at least $1,000 a month after taxes. This appears to rule out retirees.

Also, you must have home and work phone numbers, a valid email address, and a checking account. CashAdvance.com has been facilitating short-term loans since 1997.

Home Loans for Seniors with Bad Credit

The home loans we address here are based on the equity you have in your home. These include home equity loans, home equity lines of credit, reverse mortgages, and cash-out refinancings. These are ideal options for obtaining large loan amounts.

Be aware that age discrimination in the mortgage market is against the law. However, you shouldn’t be surprised if certain lenders (excluding the ones in this review) may be reluctant to offer new home loans to seniors with bad credit who may not have the ability to repay — it’s an unfortunate fact of life.

  • Options for: home purchase, refinance, home equity, and reverse mortgage
  • Lenders compete for your business
  • Receive up to 5 offers in minutes, and pick the best offer for you
  • Founded in 1996, LendingTree has facilitated 55 million+ loan requests and $250 billion+ in closed loan transactions
  • Click here for official site, terms, and details.
★★★★★

4.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 1996 7 Minutes 9.0/10

LendingTree is a marketplace for various types of peer-to-peer loans, including those involving home equity. To be eligible, you must have equity in your current home and live in a participating state.

If you qualify, a marketplace lender may offer you a home loan after it reviews your finances. As a marketing lead generator, LendingTree does not charge you for its service.

  • Options for: refinance only
  • Get 4 free refinance quotes in 30 seconds
  • Network of lenders compete for your loan
  • Trusted by 2 million+ home loan borrowers to date
  • Interest rates are near all-time lows
  • Click here for application, terms, and details.
 
★★★★★

4.7

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies 2004 4 minutes 8.5/10

FHA Rate Guide does not offer or arrange loans. Instead, it provides you with leads for home loans guaranteed by the Federal Housing Administration.

By using these leads, you can then select up to four suitable sources of FHA-guaranteed home refinancing loans. It takes only a minute to get preapproved quotes based upon the information you provide.

  • For military veterans, service members, their spouses, and other eligible beneficiaries only
  • No down payment and no monthly mortgage insurance
  • The basic entitlement available to each eligible veteran is $36,000
  • Lenders generally loan up to 4 times a veteran's available entitlement without a down payment
  • Click here for application, terms, and details.
★★★★

3.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
Varies by Applicant 1944 9 Minutes 7.5/10

The U.S. Department of Veterans Affairs will directly fund or guarantee mortgages and refinancings to eligible military active-service members, veterans, and reserve/guard members, regardless of credit score or age.

The sources for VA-guaranteed loans include credit unions, banks, and other mortgage providers. Regulations limit the maximum size of these loans, which feature exceptionally good terms and necessitate no down payment.

Auto Loans for Seniors with Bad Credit

If you’re a senior citizen with poor credit in need of a car loan, the lending networks below may be able to help. Or, if you have equity in a vehicle, you may be able to use it as collateral for an auto loan or to refinance an existing auto loan.

For example, if you own a car worth $10,000 and owe $8,000 on the car’s loan, you may be able to refinance it and cash out some portion of your $2,000 in equity. Remember that if you miss payments, the lender can repo your car.

The following four lending networks work with borrowers of all ages who have bad or scant credit.

  • Network of dealer partners has closed $1 billion in bad credit auto loans
  • Specializes in bad credit, no credit, bankruptcy and repossession
  • In business since 1999
  • Easy, 30-second pre-qualification form
  • Bad credit applicants must have $1500/month income to qualify
  • Click here for application, terms, and details.
★★★★★

4.9

Overall Rating

Interest Rate In Business Since Application Length Reputation Score
3.99% - 29.99% 1999 3 minutes 9.5/10

It takes very little time to fill out the Auto Credit Express online loan request form — you simply provide basic data about your income and residence. Auto Credit Express will then match you to a local car dealer willing to consider refinancing your car after you complete the dealer’s online application.

This lender-matching service has facilitated more than $1 billion in loans since 1999.

Car.Loan.com boasts the largest car dealership network in the United States and specializes in arranging car loans for consumers with bad credit. You start the application process by providing data about yourself, including your address, Social Security number, and income.

If you qualify, a dealer may approve your application and make you an offer. The company has been in business since 1994.

MyAutoLoan.com can get you up to four dealer offers in a short time. The minimum loan amount is $8,000 and you must have a regular income of at least $1,800 per month. This may rule out the average Social Security recipient.

You can get a loan arranged by MyAutoLoan.com despite having bad credit. To qualify for cash-out refinancing, the vehicle’s odometer must show less than 125,000 miles and the car must have been built within the last 10 years.

How Can Seniors Get Financial Help?

Hundreds of federal, state, local, and private programs offer financial assistance to seniors with low to moderate income. The definitions for “senior” and “low income” may vary by jurisdiction and program, but the range of 60 to 65 is commonly treated as the starting age of seniority.

If you need financial assistance for health care, food, housing, in-home services, utilities, and so forth, you can use the BenefitsCheckUp website of the National Council on Aging. To use this resource, you simply enter some basic facts and receive a personalized report with links to services and programs for which you may qualify.

BenefitsCheckUp.org

Seniors can use benefitscheckup.org from the National Council on Aging to access more than 2,500 nationwide benefit programs.

For health care issues, you can contact the Centers for Medicare & Medicaid Services if you are 65, have a low-income, or are disabled. In addition, the Program for All-Inclusive Care for the Elderly can provide financial assistance to those who are looking for an alternative to a nursing home.

You can find the most comprehensive guide to government benefits on the USA.gov website. You’ll find links for getting help with living expenses, housing, food, health care, and other needs.

Finally, the Social Security Administration has detailed information about benefits for seniors, surviving family members, and the disabled.

Can a 70-Year-Old Get a 30-Year Mortgage?

Federal law prohibits mortgage lenders from discriminating on the basis of age, which means that even a 90-year old can get a mortgage. There is also no prohibition on the length of the term, although some seniors may consider a 30-year mortgage overly long.

Nonetheless, a 30-year mortgage may be a good choice for seniors who want to minimize their monthly payments.

Similarly, there are no age limits for home equity loans or lines of credit. These loans depend on the amount of equity in your home and your credit rating. A home equity loan usually has a fixed term, whereas a home equity line of credit is a revolving loan facility that may have an open-ended term.

Seniors of age 62 or older are eligible for a reverse mortgage. These can be an excellent source of cash to help pay for daily living and health care needs. In a reverse mortgage, the lender pays you a lump sum and/or monthly payment.

The payments are tax-free, and you don’t have to repay until you leave your home. The amount you receive depends on the equity you have in your home.

What is Considered Low Income for Senior Citizens?

The term low income can be used as a general indication of wealth (or lack thereof) but can also have one or more technical definitions. Different government agencies may have their own guidelines for what constitutes low income.

For example, federal rules classify low-income households as those with income not more than 185% of the Federal Poverty Guidelines. In 2020, the federal poverty level for an individual is $12,760, and 185% of that figure is $23,606.

HHS Poverty Guidelines for 2020

Another definition of low income, used by the Department of Housing and Urban Development (HUD), is an income of less than 80% of the median area income. If your income is below 50% of the median, HUD considers you to have “very low income.” HUD uses these definitions for setting public housing eligibility standards.

Of course, few of us have memorized the precise guidelines for the definition of “low income.” Instead, we are likely to use a subjective number, such as $30,000. Whatever number we use, the general connotation is that it’s challenging to live on a low income.

Help is Available for All Ages

It seems that anyone from 18 to 108 can get a loan, at least from the 12 lenders we’ve reviewed in this article. While it’s true that seniors with bad credit face unique challenges, many programs are available to seniors that can provide financial help.

If you have a steady income, you may be able to get a personal loan. If you own a home or car, it’s easier to siphon off some of the equity because the property serves as collateral. But beware of defaulting on a secured loan, as the lender may seize and sell your property.