Loan Options for Seniors

When we're young, most people work hard, save and look forward to enjoying their senior years with a decent amount of money saved up to live comfortably. Unfortunately, a lot of elder folks find themselves with very little to retire on, and when there is an emergency, there is little money to pay for it. 

When applying for a loan as a senior citizen, lenders will take into account your pension, social security, part-time work, and any other income you may have, like rental income or dividends. Whether or not you have a bad credit score, lenders view giving personal loans to elderly people as riskier since they don't usually have a stable income. 

However, this does not mean that you are out of options. As a senior faced with an unexpected expense, quick cash loans are available to you that don't require credit checks. 

Withdraw Cash from Your Credit Card

If you have a credit card, the easiest way to get cash without going through an approval process is to use your existing line of credit and withdraw the money from your credit card. 

You will need a pin code to withdraw cash from your credit card. Your bank can help you set a pin code on your card so you can withdraw money at an ATM. The amount you can withdraw depends on your credit amount and your credit card balance. 

Reverse Mortgage

Seniors over sixty-two who own their own home or have a low balance owing on their mortgage can take out a reverse mortgage. A reverse mortgage allows you to borrow money by converting a part of your home equity into cash. Unlike a traditional personal loan where you have to make monthly repayment, you only need to pay back the reverse mortgage when you move out of the house into a retirement facility, sell the house, or die. 

Pawnshop Loan

As an elder, you’ve likely accumulated some valuable items that you no longer use. Whether it's a piece of jewelry, tools, or electronic equipment, you can use it as collateral for a pawn shop loan.

If you need a loan, take the item to your local pawn shop, where the pawn dealer will evaluate it and offer you a loan based on about 25% - 60% of its resale value. Keep in mind that although this is a quick and easy option, the interest rates are high, and you often have to pay additional fees for storage and insurance. You usually have between 30 to 60 days to repay the loan, and if you’re unable to do so, the item you used as collateral will be sold to cover the cost of the loan.