Question for those on ssi,ssdi

[Anonymous]

To all those on ssi and ssdi, whats your highest limit credit card? I am just trying to get a feel as to how high can your credit limits get even though your income is limited.

[pipeguy]

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@Anonymous wrote:

To all those on ssi and ssdi, whats your highest limit credit card? I am just trying to get a feel as to how high can your credit limits get even though your income is limited.

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These are two completely different programs for Social Security "income". SSDI is disability that is "earned" and requires the person to have worked having paid into Social Security, SSDI is not asset or other income limited (such as additional household income) and is not limited by net worth but can also pay benefits to dependants such as minor children.  SSI is disability income which is VERY limited by assets, income, etc and does not require a set amount of previous work or paying into social security.

Persons recieving SSDI could have fairly high incomes and assets and their credit options would be based on their total credit/income/asset profile. Whereas those whose sole income is SSI "could" be assessed the same way. SSI income is generally in the $450 to $733 (total) range per month which would limit their credit options based on very limited income. 

Many SSI only income persons also have access to SNAP, Medicaid, Housing assistance, Lineline access, etc. Although these other programs are not counted as assets or income, there are low restrictions that limit liquid assets, total yearly income, etc. to remain within the guidelines of these programs. As an example, if a person is getting a $733 a month full SSI payment, should that person obtain subsidised housing (various forms of this, from living with a relative to other options), the SSI payment drops by 1/3 to about $450 a month.  

I know I have not directly answered your question, but "it depends" and I'd suggest that where recieving SSDI would allow for full credit options depending on your over all credit profile - that SSI would only allow for very (!) limited credit options.

Edit/Add - adjusted max SSI number - https://www.ssa.gov/oact/cola/SSIamts.html

Edit/Add - SSDI info - http://www.nolo.com/legal-encyclopedia/how-much-social-security-disability-ssdi-benefits-can-you-get.html and http://www.disabilitysecrets.com/resources/social-security-disability/ssdi/income-limits-ssdi-benefits

[Anonymous]

For those in the $1000 a month range, again i would just like to get an idea of how high can your credit card limits get on a limited income. I know alot of other factors come into play like whats on your credit report but even assuming your credit report is near perfect.

[pipeguy]

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@Anonymous wrote:

For those in the $1000 a month range, again i would just like to get an idea of how high can your credit card limits get on a limited income. I know alot of other factors come into play like whats on your credit report but even assuming your credit report is near perfect.

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On a set income of $12000 a year I don't think you'd get high limits and for good cause as high debt would be a budget buster as far as payback. As far as this income coming from SSDI, future income is NOT limited to the $12k so there would be future options. SSI income is maxed at just under $8000 a year with very limited future income other than small cost of living increases - very limited revolving credit options at that income level. 

Note that I have a sibling on SSI and its a struggle to survive let alone pay for credit cards. I'm also very tuned into SSA benefits and options due to my current employment.

[Anonymous]

Sounds like Pipeguy knows a ton about this.  Great that he saw your post and chimed in.

I know far less about SSI and SSDI, but I can give you a general piece of encouraging news.  And that is that no matter what a person's credit limits may be, he can spend as much as he wants (on his cards) and still keep his utilization extremely low.  For example, a college student with a $300 credit limit can easily spend $1500 on a given month, just by making a $250 payment to his credit card every 4-5 days, and then making sure that his balance is at $10 or a couple days before the statement prints (which would give him a utilization of 3-4%).

Since FICO doesn't give you any particular scoring benefit for having a $30,000 credit limit vs. a $300 limit, the student (retiree, etc.) with the tiny limit can do just as well (with his score) as the person with the big limit.

All of which is to say that you have raised a good question, but it's also good to know that in an important sense it doesn't matter.