If you’re looking for car loans for fixed income households in Florissant or St. Charles, you might be overwhelmed by all the different terms. Between SSI vs. SSDI, what’s the difference and how does it affect your ability to find a vehicle? In this guide, we’ll detail how SSI vs. SSDI income varies and explain the next steps to take in the St. Louis area.
SSI vs. SSDI Eligibility
So, is SSI and disability the same thing? Not exactly. If you are an American with a disability, it’s likely that you qualify for a cash benefit program. But, SSI vs. SSDI eligibility varies:
- Supplemental Security Income (SSI) is a means-tested program that is based strictly on need. These benefits are paid to individuals aged 65 or older and are designed for people who have low income and limited assets. To qualify, you must have less than $2,000 in assets and limited income.
- Social Security Disability Insurance (SSDI) is funded through FICA Social Security taxes. These benefits are paid to blind or disabled workers who are prevented from performing at a typical occupation. If you have earned the minimum work credits, you can qualify for SSDI after a 5-month waiting period.
Qualifying for a Car Loan With SSI or SSDI
Some lenders are hesitant to provide car loans for shoppers living on a fixed income, but there are some ways you can increase your chances of getting approved with SSI or SSDI:
- Another Form of Income: Some individuals who receive SSI or SSDI benefits are still able to find a form of employment to provide some additional funds to bolster their fixed income savings, even if it’s not much. If you are able to garnish a W-2 for a lender, they may be more apt to work with you.
- Consistent Residency and Good Credit: If you have lived in one place for a significant length of time, lenders may feel more confident about borrowing to you with fixed income. Additionally, having a solid credit score can do wonders. With bad credit and fixed income, a lender may view it as two strikes against you as a potential borrower.
- Consider a Co-Signer: Do you have a family member who could act as a co-signer on your auto loan? If they have stable income, a lender might consider their eligibility before yours, helping you to secure the loan.
SSDI vs. SSI Benefits: Auto Financing Restrictions
There are major differences between Social Security Disability benefits vs. SSI, and if you’re seeking a car loan, there are major differences in your purchasing power as well. Here are some things to keep in mind:
- On Supplemental Security Income (SSI), you are only allowed one car per household as a means of transportation. This will not count toward your SSI resource limit and there are no restrictions on make or model.
- On Social Security Disability Insurance (SSDI), you may own multiple cars per household and there are no limits to how many assets you can receive. And again, there are no limitations on the type of car you may purchase.
Above all, it’s important to get as much information as you can before purchasing your vehicle. Speak to your caseworker and talk to the finance professionals at Green Light Auto Credit to ensure that you get a deal that works for your unique situation.
Learn More With Green Light Auto Credit
If you’re still stumped about Social Security Disability benefits vs. SSI, you’re not alone! Figuring out finances is challenging for everyone, but luckily, Green Light Auto Credit is here to help you. Contact us for more information about SSI vs. SSDI car loan requirements, and get one step closer to your next vehicle!
Back To Top