Payday Loans For SSI And Other Federal Benefit Recipients
Household debt continues to be an issue for many Americans, particularly those who are retired, disabled, or unemployed. In the past, those who struggled with paying weekly or monthly living expenses from social security income, disability, veterans’ compensation, or other government benefits have often had few recourse options. But with online loans such as payday loans for Supplemental Security Income (SSI) recipients now easier to find, those who are depending on government checks may have other financial options.
Options For Payday Loans for Federal Benefit Recipients Vary By Lender
Roughly 12 million Americans spend more than $7 billion on payday loans each year. Payday loans started becoming more common during the 1990s, and traditionally have typically been geared more towards those who are regularly employed. But some lenders may make accommodations regarding payday loans for federal benefit recipients, provided their income from their monthly check is enough to cover loan payments. While there are criteria that come with fast payday loans online and requirements that all applicants must follow, those who may not be regularly employed are not necessarily excluded from receiving these loans.
Lenders Who Offer Online Payday Loans No Credit Check
Lenders who offer payday loans for SSI recipients are usually not affiliated with conventional banks or other financial institutions. In some cases, predatory lenders might operate out of a pawn shop or check cashing service. But those who operate their business legitimately still have to follow state laws which, in many cases, require that borrowers demonstrate adequate ability to repay a short-term loan. To this end, lenders do not typically offer online payday loans for bad credit or with no credit check. Lenders will also typically consider the following:
- The borrower’s average bi-weekly or monthly income
- Documents highlighting consistent payments for other bills or creditors
- Whether or not the borrower could have a cosigner
All of these factors can be used in determining eligibility as well as the amount consumers can borrow with payday loans.
Requirements For Applying For Payday Loans Online
While every state and lender will have their own payday loan requirements, most borrowers should expect a relatively similar application process. It is important that potential borrowers check the online lender’s credentials because they may be asked to share some personal information during the application process. Usually, most required documents can be either photographed and scanned before being uploaded to the payday loan site, or they can be faxed. Most lenders will typically require the following:
- A photo ID document such as a driver’s license or passport to confirm the borrower’s identity
- A pay stub either from a regular paycheck or government benefits check
- A blank check to confirm the borrower has an active checking account
- Other documentation needed to verify the borrower’s physical address
States usually have laws that determine how this information can be collected and used. Borrowers who feel that a lender has violated any applicable laws may be able to have the matter investigated by their state’s finance department or attorney general office.
Those seeking payday loans for SSI recipients are required to present similar information to those listed above.
The Average Length Of Time For Receiving Online Payday Loans
Consumers who wish to get easy payday loans should remember there will always be a little bit of a wait before they can receive their funds. Lenders have to verify the accuracy of information sent, and it usually takes at least one business day for the funds to reach the bank account. Payday loans for SSI recipients may help with some short-term needs, but they usually will have a few caveats with them.
Short-term loans often have high APRs and steep rollover fees. In fact, according to a 2016 report from the Center for Responsible Lending, short-term loan interest rates in some states can cost as much as 662%, while the average APR for credit cards is only 17.55%.
Such high fees can force borrowers into a cycle of debt and into further financial instability. Experts advise that borrowers only opt for shorter-duration funding if they can afford one.
Those who are unemployed or have alternative forms of income such as SSI can apply for a payday loan online to see if they are approved.