If you are receiving Social Security disability benefits, it is possible that this could impact your ability to purchase a home or car or rent an apartment. Below are a few of the guidelines to keep in mind when considering how your status as a disability beneficiary can impact your credit history. If you have any questions, a Tulsa Oklahoma Social Security disability attorney can provide furthers assistance.
Your Credit Score Trumps All Else
What a potential lender will always care most about is what your credit score and credit history are; this is true regardless of whether you are currently receiving Social Security disability benefits. If you have a strong credit history with a high score, you will be more likely to receive credit on favorable terms than in the opposite case. The fact that you receive disability benefits usually just comes into play when you are in the middle, and a creditor is determining whether to extend credit to you.
How Disability Benefits Impact Your Ability to Get Credit
On the plus side, disability benefits are guaranteed income from the federal government. Some lenders will look favorably on this. On the negative side, disability benefits are not a great deal of money. If the item that you are looking to finance takes up a large portion of your monthly SSDI or SSI benefits, you are not likely to receive credit, because creditors would fear that you are stretching yourself too thin financially.
Additionally, as we discussed on Monday, creditors cannot garnish your disability benefits in order to pay back debt. This makes some creditors more hesitant to lend money to people whose main source of income is disability benefits since it can be more difficult to collect on overdue debt.
Has being a disability beneficiary impacted your financial life with regards to credit?
Troutman & Troutman, P.C. – Tulsa Social Security disability lawyers