Credit is the lifeblood of the U.S. economy. The ability of businesspeople to borrow capital or consumers get credit enables the economy to grow. Obtaining credit is based significantly on your income, so make sure to list all sources, including pensions, medical benefits, and Social Security retirement or disability benefits when making an application.
Social Security Disability
Social Security disability is an insurance program for workers. All workers in the U.S. have their Social Security insurance premium deducted from each paycheck, and that premium is for both your retirement account and your disability insurance. However, you must have paid your Social Security premiums for several years before you are eligible for disability payments. Forty "credits" are generally required --- earning up to four a year -- with some exceptions for younger workers. You receive these disability payments because you can no longer work and will continue to receive them as long as you cannot work regardless of any non-employment related income you may have. (Social Security disability benefits are not means-tested.)
Supplemental Security Income
On the other hand, Supplemental Security Income, or SSI payments, are means-tested, as SSI is a related but separate program run by the Social Security Administration to offer support to low-income disabled Americans. SSI is a government assistance program using general tax revenues, not an insurance program, and SSI recipients receive these benefits because they are in need not because they paid premiums.
Social Security Disability Payments Are Considered Income
All Social Security disability payments (including SSI benefits) are considered income, and therefore should be considered in any application for credit. Your income along with your credit report are probably the two most important factors in decisions to offer credit. Furthermore, government insurance benefits are guaranteed to be paid, which is a positive in getting a loan, as the lender does not have to worry about the borrower losing his job and being unable to make the payments.
Credit Reports
Your credit report is the other critical factor in determining your eligibility for credit. Having good credit helps a lot in overcoming a low income in the loan application process. Income, however, is the essential limiting factor as no bank is likely to loan you more than you can realistically pay back based on your income no matter how stellar your credit.
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