If you are a pensioner and you own VSI pension or a military pension or retirement pension then you can sell it. You might be receiving small payments every month and your pension is based over several months or years. You can sell your pension or a portion of your pension in quick time instead of receiving little amount of your pension in many years. You can sell it if you are in urgent need of cash to pay off your huge medical bills, pay off your outstanding debts, or if you want to get a lump sum payment to start a new business.
Which Pensions you can sell?
You can sell your pensions if you are receiving military pensions, or if you are receiving payments from federal state or from your local government pension such as California Public Employees’ Retirement System. You can sell your pensions if you were a nurse, firefighter, teacher, sheriff, or policeman, or if you had done job as a civil servant or for a corporate like GE, Boeing, IBM and many others. In all these cases, you can sell your pension to get a lump sum amount.
Who is Eligible for Pension Loan or Pension Advance?
If you comply with following requirements then you are eligible to apply for pension advance. Let’s have a look on these requirements.
- You are eligible for pension loan if you are already receiving a gross amount of $5,000 a year or $400 a month exclusive of all taxes and deductions as a military pension or retirement pension. Besides these payments, you must have an overall credit score of 600 or above on all three credit bureaus.
- If you are receiving military pension then make sure you are receiving 55% of your total pension from the military DOD exclusive of disability payment. This is because when you receive military pension then it is possible that 45% of your military pension might be coming from the disability fund. It is very important for you to receive 55% pension payment from the VSI because you cannot sell your disability pension. Apart from it, Social Security is also not eligible for pension advance.
- Your credit report must be clear from bankruptcy. If you had had bankruptcy then it must have been eliminated at least 2 years ago and you must own a fair credit history since the elimination of bankruptcy.
- You must own a fair credit history over last 2 years.
- You must be a permanent resident of the United States with a valid U.S address.
- You cannot take out pension advance if your pension loan application has been rejected by the other lender within last 18 months. To sell your pension after rejection, you should improve your credit history and then apply again.
- If you have a credit score of less than 600 then you cannot apply for a pension advance.
Working of Military or Retirement Pension Advance
- First of all, you submit an application that should be containing important information like how much you are receiving each month from your retirement or military pension, and how much amount of money is being deducted from your pension in terms of taxes, child support, alimony etc.
- You are also required to state clearly about from where you are receiving pension such as are you receiving from GE, DFSA or State of Florida or IBM etc.
- You should also mention when you receive your pension payments.
- The underwriters of your lending company will calculate the amount that you will be going to receive over a period of next eight years from your retirement or military pension. For instance, if you are receiving $500 a month exclusive of all taxes and deductions then you will be receiving $48000 in next 8 years.
- You will receive a 40% share from your total pension of 8 years. In simpler words, you will receive a 40% amount in shape of your pension advance at a time.
- Receiving 40% does not mean that you have to pay 60% for the pension loan on your retirement or military payment. It applies a simple rule of the value of money. It is just like the $5,000,000 lottery which you get over a period of 30 years or approximately half of that amount. The rates are not stable but will remain between 12% and 16% during next 8 years. This is far more reasonable than credit card or other unsecured loans. It also gives a full financial freedom to the pension advance takers i.e. they can start new business with that lump sum r can also buy a home or any other property.
Benefits of Pension Advance
Pension advance or pension loan offers great benefits to pensioners who are in urgent need of money or to those who want to have a lump sum amount to invest in any business. There are no restrictions for the usage of military loans and you can use your pension advance anywhere at your discretion. From home purchase to new business incorporation, a lot of other things can be done with a pension advance. Following are the best uses of a pension advance or pension loan:
- You can pay off your outstanding debts or unpaid taxes.
- You can buy a new car or improve the existing one.
- With a pension advance you can purchase a new home or improve your existing home.
- The pension loan can be invested to start the new business or to give a boost to the existing business.
- You can use the lump sum of pension advance to fund the tuition of your grandchildren.
- You can spend this amount on the wedding arrangements of your children or grandchildren.
- You can also use this amount to build an emergency fund that you can use in any emergency.
- You can use the pension advance to enjoy longer vacation to get out of the rut after retirement.
- You can donate this lump sum amount to any charity fund.
Overall, if you are a financially troubled pensioner then you can sell your full pension or a portion of pension. You can use the lump sum amount that you receive after selling your pension into any activity.
