Often, people with a disability are unable to work or can only work part-time, making it difficult to cover day-to-day living expenses. To help these individuals, the government of BC has implemented a program that provides them with monthly payments to help cover the cost of rent, food, transportation and medical expenses.
However, despite this benefit, certain emergency costs can sometimes leave these individuals cash-strapped. In such cases, is it possible to get a loan while on disability assistance in BC?
Key Points:
- Being on disability can put you in a financial predicament, leaving you strapped for cash.
- If you’re relying on BC Disability Assistance for money, you may be able to use this non-employment income to qualify for a loan.
- You may need to work with an alternative lender that accepts non-traditional income if your sole source of earnings is your BC Disability Assistance payments.
Can You Get A Loan While On Disability Assistance BC?
In short, yes, you can get a loan while on disability assistance in BC. However, you’ll need to find a lender who accepts non-traditional forms of income. Non-traditional forms of income may include Employment Insurance (EI), Canada Child Benefit (CCB), Canada Pension Plan (CPP), and other government assistance programs, such as the BC disability assistance.
It’s important to note that, while these lenders accept non-traditional forms of income, they also charge higher rates and have shorter terms, making them an expensive way to borrow money. This is to help offset some of the extra risk they take by accepting different forms of income.
Find Out How Much You Qualify For
Types Of Loans You Can Get
There are different types of loans you can get while on BC Disability Assistance. Depending on your needs, one will prove more useful than the other, as each option comes with its own pros and cons.
Personal Loans
A personal installment loan is a better option than a payday loan as it has lower interest rates, longer terms and higher loan amounts. This makes it a more affordable option when trying to cover large expenses. However, to be eligible for an installment loan, you’ll need to find a lender who accepts BC disability assistance as a form of income.
Learn more: Personal Loans
Auto Title Loans
An auto title loan is a loan that is secured against the title of your car. Due to the security the title provides, lenders are more willing to approve borrowers with poor credit and finances. Like a personal loan, you’ll receive a lump sum of cash, which you’ll have to repay with interest within a specified time.
Keep in mind that if you miss any payments, the lender can seize and sell your car in order to recoup payment.
Car Loans
You can get a car loan while on disability in BC, as long as you have a steady source of income. This is true even if your income comes from disability assistance programs like BC Disability Assistance or federal benefits like CPP Disability.
However, keep in mind that your income from disability payments must be sufficient to cover your auto loan payments.
Learn more: Can You Finance A Car On Disability Income?
Small No Interest Cash Advances Or Lines Of Credit
Small no-interest cash advances or lines of credit are short-term borrowing options that allow borrowers to access smaller amounts of money without paying interest, often through apps or alternative financial platforms. Here are a few options to consider:
- Bree: Bree offers instant cash advances of up to $500 with no interest or credit checks, helping users bridge gaps between paydays.
- Nyble: Nyble provides small, interest-free credit lines of up to $250 to help Canadians build credit and manage cash flow.
- Money Up: Money Up delivers fast, no-interest lines of credit of up to $1,000 with flexible repayment options and no impact on your credit score.
- KOHO Cover: KOHO Cover gives users access to up to $250 in cash advances with no fees, available through a subscription bundle.
Payday Loans
If you need fast cash, you may qualify for payday loans in BC while on disability assistance income. These payday lenders can be found online or in your local area. ty
You can also find online payday loans if you prefer to take a digital approach to loan application. Online payday lenders are becoming increasingly popular and commonplace. You can apply from anywhere, at any time, and have your application approved and your account funded often within the same day you apply.
However, it’s important to remember that a BC Disability Assistance payday loan is an expensive option that comes with high-interest rates and extremely short terms. You can also only borrow small amounts, most lenders will lend up to $1,500.
Maximum Cost Of A BC Disability Assistance Payday Loan
The maximum a lender can charge you for a payday loan in BC is as follows:
| Province | Max. cost per $100 borrowed | Max. Penalty for Returned Cheque | Cooling Off Period | Loan Rollover or Extension |
| British Columbia | $14 | $20 | 2 business days | Not allowed |
How To Apply For A Loan While On BC Disability Assistance
Applying for disability loans in BC is possible, but be sure to follow these steps:
Step 1: Prepare Your Personal And Financial Information
This is a good first step to take before any large financial transaction. For most lenders, a potential client being financially disorganized is a possible sign of future debt problems. Having all your personal and financial information updated and ready for inspection will not only increase your chances of getting the loan you need, but will also make the application process go a lot smoother.
Step 2: Brush Up Your Finances
If you have time, paying off other debts and improving your credit score before applying for a loan, can make all the difference. The better your finances and credit score, the more likely you’ll qualify for a loan with low rates and terms that meet your financial needs. You can check your credit score for free using Loans Canada’s CompareHub tool.
Step 3: Find A Lender And Get Quotes
Researching several lenders in advance is another very important thing to do before applying for any loan. You can also get loan quotes from certain lenders, which can help you compare offers and see which one best meets your needs.
Step 4: Apply
Once you know who you want to work with, simply complete the application, which is done entirely online. Along with the application, be sure to provide all the necessary documents. This includes your personal identification and financial documents such as your driver’s license, bank statements, and pay stubs.
If your application is approved, you should receive your funds in your bank account via e-Transfer within a few hours, depending on the lender. Many online lenders use instant bank verification (IBV) to ensure quick and secure loan approvals.
| What Is Instant Bank Verification? Instant bank verification is a secure online method that enables lenders to quickly confirm a borrower’s banking information through read-only access provided by a reliable third-party platform. This helps speed up the application and approval process, providing borrowers with funds much more quickly without compromising security and privacy. |
How To Improve Your Chances Of Securing A Loan While On BC Disability Assistance
Securing a loan while receiving BC Disability Assistance can be challenging, but it’s not impossible with the right approach and preparation. Here are a few things you can do to position yourself for loan approval:
Work With The Right Lender
Traditional banks typically hesitate to approve loans based on disability assistance. As such, you may want to seek out alternative lenders that accept government benefits like BC Disability Assistance as an income source.
Provide Clear Proof Of Income
Even if your income is from disability assistance, you’ll need to show consistency, which you can prove through bank statements, direct deposit records, and monthly assistance payments.
Note: Keep in mind that you’re still allowed to work while receiving BC disability benefits. Working while on BC disability assistance may actually strengthen your loan application, as you can use that additional income to qualify. A higher total income can reassure lenders that you earn enough to comfortably cover your loan payments.
However, it’s important to note that your benefit amount may be adjusted based on your earnings if you’re working. You can earn up to a specified amount without impacting your monthly payments, as long as you don’t exceed that limit. If you do, this could result in a reduction or suspension of benefits for the rest of the year.
Keep Your Debt-To-Income (DTI) Ratio Low
Lenders assess how much of your income goes toward existing debt. Paying down your debt before applying for a loan can improve your financial profile, reduce the risk of loan default, and increase your approval odds.
Boost Your Credit Score
A higher credit score lowers the lender’s risk and increases your chance of loan approval. Good credit also helps you secure a lower interest rate, which makes your loan more affordable. To improve your credit score, do the following:
- Make payments on time
- Keep your credit utilization ratio low
- Avoid applying for multiple loans at once
Consider A Cosigner
Adding a cosigner to your loan agreement can significantly boost your chances of getting approved. If you have a trusted friend or family member with strong credit, consider adding them as a cosigner, as long as they understand the responsibility involved.
Top Reasons To Get A Loan While On Disability Benefits
There are many reasons why someone on BC Disability Assistance would need a loan, like the following:
Housing Costs
With the British Columbia real estate market being as expensive as it is, it can be hard for any person, even someone receiving a monthly benefit, to comfortably afford a mortgage or housing costs.
Even rent for a small apartment can be extremely expensive, especially for a space that’s close to or located near a major metropolitan area like Greater Vancouver. So, a loan to cover those housing costs can be a huge help.
Financing A Vehicle
Getting around on public transit with mobility issues is not easy for everyone, especially those who live outside city limits. Even if the public transit system in a large city like Vancouver or Victoria can be efficient enough, the areas on the outskirts of the city, such as Langley or Sydney, might not be.
In fact, some people with disabilities need to finance vehicles that are modified for added convenience with devices like wheelchair power lifts, hand pedals/steering wheel-mounted controls and rear-view cameras.
Emergencies
Loans are not just for larger expenses like cars and mortgages. Emergencies, both medical and financial, can happen to anyone, regardless of their disability or lack thereof. Whatever that unexpected emergency might be, getting a loan to cover that expense can help someone deal with it in an affordable, efficient manner.
Home Renovations
People with disabilities who have mobility issues may hire a contractor to renovate their homes to make them more accessible. For instance, they may install a wheelchair ramp or a power lift for easier access. But these modifications require money.
While their BC Disability Assistance benefit might cover part of those costs, it might not leave them with enough leftover to pay for their other general expenses. So, a loan to pay for a contractor’s services can be a great asset.
What Is The BC Disability Assistance Program?
The BC Disability Assistance program is a provincial benefit that those with a disability can receive. Those who qualify can receive benefits such as income, health supplements, special transit passes, and optical or dental coverage.
Those who qualify may be eligible for the following monthly amounts:
- $1,478.50 for families where one person is a person with disabilities (PWD), and the other is not.
- $1,953.50 for couples and two-parent families where both adults are PWDs.
How To Qualify For The BC Disability Assistance Program?
Anyone who wishes to receive the BC Disability Assistance must meet the following criteria:
- Be at least 18 years old.
- Have a physical or mental impairment that is likely going to continue for more than two years.
- Be significantly restricted in their ability to perform daily living activities.
- Require daily aid from an assistance device (wheelchair, crutches, etc.), an assistance animal (support dog, etc.) or the help of another individual (nurse, caregiver, etc.).
- Earn less than $15,000 a year as a single individual or $18,000 as a couple. If both partners in a couple have a disability, they must earn less than $30,000/year to qualify.
Learn more: Do You Qualify For Disability Assistance In BC?
Final Thoughts
BC Disability Assistance provides financial support, but sometimes additional funding is needed to cover various expenses. While on assistance, there may be financing options available that can help bridge financial gaps responsibly, despite a lack of traditional income. Do some research into the options available and what you can do to strengthen your loan application.
